Rental vacancies in Adelaide reach highest rate in years – realestate.com.au

Adelaide’s tight rental market is easing, new data shows, but only slightly, and experts warn this is unlikely to last long.

The latest data from SQM Research shows Adelaide’s vacancy rate – the percentage of available rental properties that are vacant – reached 0.9 per cent in December 2025.

It is the highest vacancy rate since mid-2021, when it was also just below 1 percent.

In December, Adelaide had 1398 vacancies, compared to 1237 in November and 1258 in December 2024.

Despite the recent increase, rental conditions remain limited due to the limited supply.

SQM Research director Louis Christopher said traditionally there were more rental options available during the summer.

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“We normally see an increase in vacancy rates at this time of year,” he says.

“We have some students who are finishing the year and going home, or done for good,” he said.

“In the summer season, it’s definitely a more transient time.”

Mr Christopher said it is a good time of year for tenants to negotiate with property managers and landlords.

While vacancy rates were falling, Mr Christopher said this was unlikely to remain the case for long.

“It will become even stricter,” he said.

SQM Research director Louis Christopher.

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“Adelaide has generally had a fairly tight rental market compared to other capital cities.”

Mr Christopher said an influx of residents from home and abroad moving to Adelaide following the Covid-19 crisis had contributed to the city’s tight rental market in recent years, with vacancy rates falling below 0.5 per cent at several points between 2022 and 2024.

“It really started when we went into lockdown in eastern Australia,” he said.

“International arrivals also tend to look for rental properties first, which has increased the demand for rental properties in Adelaide.”

Harris Real Estate director Phil Harris said the market was slightly softer than before as his agency now has more rental properties available compared to the same time last year.

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Harris Real Estate director Phil Harris.

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While seasonality was partly responsible, he said changes in legislation in 2024, which meant tenants could break their lease and pay a capped price, had an impact.

The changes mean tenants now only have to pay a maximum of one month’s rent if there is less than 24 months left in their lease, as well as some advertising and reletting costs.

“It’s easier for a tenant to move out,” Mr. Harris said.

“There are undoubtedly more tenants who are now willing to terminate the lease than in the past.”

Tenants not having to share as much personal information with landlords and property managers as in the past also slowed the process of filling rental units, Mr. Harris said.