The Property Council has released a concerning report titled “Beyond Reach,” which details the affordability challenges facing key workers in Adelaide's housing market.
The research illustrates that owning a home in Adelaide requires household incomes to stretch far beyond the “affordable” threshold, often needing five to nine times the average income of key workers.
The report surveyed several suburbs where the dream of homeownership remains elusive for many:
Bruce Djite (pictured), South Australian executive director of the Property Council, emphasised the report’s urgent message to the government.
“This report is a wake-up call to the government to slash the cost of developing housing,” Djite said.
He pointed out that Adelaide, now trailing only behind Sydney, has become Australia’s second most expensive housing market when comparing incomes relative to house prices.
Five years post-COVID, Adelaide’s housing values soared 73.1%, pushing the median dwelling value to approximately $822,201.
Djite stressed the necessity of reducing taxes, charges, and compliance costs linked to housing development to combat this affordability crisis.
The report slammed various development charges that inflate housing prices, which include developer land tax, council rates, development approval fees, stamp duty for developers, infrastructure contributions, utility charges, and more.
These fees contribute significantly to the high cost of new housing, making it unaffordable for many residents.
The study provided case studies showing that even dual-income households with respectable earnings find it difficult to afford homes in the surveyed suburbs. Specific examples highlighted include:
The Property Council report identified a critical lack of housing supply as a central issue and called for focused government efforts to cut statutory housing costs.
By consulting with members, it found that these costs can add up to 30% of the price of new houses, highlighting a significant area for potential savings and increased affordability.
The Property Council’s findings underscored the urgent need for policy interventions to ensure that Adelaide’s key workers can access affordable housing, urging immediate action to adjust the economic levers that currently make new housing prohibitively expensive.
