Once celebrated for its charm, affordability, and livability, Adelaide is now facing a housing crisis that few saw coming. The city, once a haven for first-time buyers and young families, has become the second-least affordable housing market in Australia, trailing only Sydney. The affordability Adelaide was once known for has all but disappeared, leaving many locals priced out of the property market.
According to the latest Demographia International Housing Affordability report, Adelaide ranks as the sixth least affordable metropolitan area among 95 global cities. This shift means it is now less affordable than global heavyweights like San Francisco, London, and Toronto. Real estate professionals in the city report growing frustration among buyers who are constantly outbid and overwhelmed by rising prices, even in the unit market.
Experts point to a combination of government planning strategies, investor-driven demand, and stagnant housing supply as major contributors. Tax incentives for property investment and decades of policies favoring homeownership have supercharged prices. Meanwhile, Adelaide’s geography—hemmed in by hills and coastline—limits expansion, compounding the supply issue.
South Australia’s leaders are being urged to act swiftly. Without aggressive policy change and investment in housing infrastructure, Adelaide could soon be viewed not just as unaffordable, but inaccessible. The city’s identity—and the opportunity it once promised—is at risk unless immediate, coordinated action is taken.