Rent forecast Adelaide 2035: shock forecast revealed – realestate.com.au

Do you think rent is expensive now? In the immortal words of Bachman-Turner Overdrive, “Bbb-baby, you ain’t seen nothing yet!”

New analysis of PropTrack data has predicted what Adelaide’s average weekly rental prices could be in 2035, if the growth of the past decade continues.

I hope you’ll sit down.

If we push the rental price growth in Adelaide over the past decade to the year 2035, and if history repeats itself, South Australian investors are about to make a killing, while those who rent will need deep pockets to keep a roof over their heads.

According to the data, the average rental price of a house in Adelaide will go from the current $610 to a whopping $799 per week – a significant increase from $189.

Do you want to save money and rent a unit? That goes from $520 to $681 – an increase of $161.

But that’s nothing compared to the increases we’re seeing in our prestigious suburbs.

Rents for homes in Medindie are forecast to rise from $1,265 per week to $1,802 by 2035 – an increase of $537 per week, netting landlords a gross $93,689.61 for the year.

Unley Park renters will need an additional $446 per year, with the $1,496 needed in 2035 far exceeding the $1,050 needed today.

Their landlords earn a gross $77,776.08 that year.

SQM Research Director Louis Christopher. Delivered

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SQM Research founder Louis Christopher said that while the projections of construction activity over the next decade should help stem runaway rent increases, he still advised that renters would be better off buying a home if they could afford it.

“If you have the opportunity to come in as a first home buyer, you should look at it seriously,” Mr Christopher said.

“The market will pick up again in the coming year, but I think the way things have gone for renters who became first home buyers has been better than for those who remained renters, and I don’t see that changing anytime soon.”

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Even those at the more affordable end of the market will have to find more than $100 more per week, with SA’s cheapest option – Whyalla units – rising $106 from $250 to $356 by 2035.

Tenants of Coober Pedy homes will need another $112, with their rents rising from $263 to $375.

Harris Real Estate director Phil Harris. Image: supplied

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Harris Real Estate director Phil Harris said rental prices were likely to follow house price growth forecasts over the next decade.

“In a real estate market that is rising so quickly, I think rental prices are reflecting that, largely due to the continued limited supply of real estate,” he said.

“The biggest shortage is in the supply of affordable rental properties – the higher you go, the more options, but under €700 a week it is very competitive.

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“After tax, that’s a lot of money for people to pay every week, and especially in a post-Covid world where there’s a growing trend of single people wanting accommodation, and financially that’s a lot of money, especially when you consider you’ve got groceries and bills too.

Mr Harris said if rents are to rise as forecast, wages must do so too.

“There must be a parallel increase in wages and housing costs to prevent rents from becoming even more unaffordable,” he said.

– with Nathan Mawby