Adelaide Joins World’s Top 20 List of Most Unaffordable Property Markets
Adelaide was once one of Australia’s more affordable housing markets to buy a home, but now is ranked as Australia’s second least affordable capital city, behind only Sydney, and even outranking London and New York when housing costs are measured against average local incomes.
In a recent Demographia International Housing Affordability report, which compares housing costs to income in 95 markets across eight nations, Adelaide ranked sixth least affordable.
Recently, David King was interviewed by The Guardian Australia to dicuss growing housing affordability challenges facing Adelaide.
The piece brought to national attention what many local buyers are now experiencing. As a local Buyers Agent in Adelaide, “I’ve witness first hand how our city has transformed from one of the most affordable capitals in Australia to one of the most difficult cities for homebuyers to enter.” says David.
The Hard Numbers Behind Adelaide’s Housing Surge
We are now seeing buyers who were originally looking to buy a freestanding house having to shift their focus towards units, only to find that even that part of the market is quickly becoming out of reach. The numbers from the latest Cotality Home Value Index (June 2025) tell the story.
- Since 2020, Adelaide values have grown 73.7% over 5 years and 93.6% over 10 years, making it one of Australia’s fastest appreciating capital city markets.
- Over the past 12 months, Adelaide dwelling values have climbed 8.6%, outpacing the national annual growth rate of 3.3%.
- The current median dwelling value sits at $829,695, while median house values now reach $882,157, and units $600,071.
- Units have recorded particularly strong growth, rising 10.7% over the past year, as many buyers priced out of houses shift towards apartments.
- Rents are also surging: unit rents are up 7.3% annually, and house rents are up 4.3% year-on-year, adding further strain to renters attempting to save a deposit while navigating rising living costs.
This data reinforces what many buyers already feel: prices are rising faster than incomes, competition remains fierce, and affordability pressures are mounting at both ends of the market, for both buyers and renters.
Why Adelaide Buyers Agents Matter More Than Ever
In a market like Adelaide, buyers face two major risks:
(1) getting priced out altogether, or
(2) overpaying emotionally under pressure.
This is exactly where buyers’ agents have become an essential advantage for many local buyers. Here’s how we support our clients:
- Off-Market Access: Many of the best opportunities never hit public portals like realestate.com.au. Through deep relationships with agents and vendors, we provide access to properties most buyers simply don’t see.
- Accurate Valuations: We help clients understand true value in the context of rapid price growth, allowing them to buy smart, not desperate.
- Expert Negotiation: Whether it’s private treaty or auction, we craft offer strategies designed to secure properties on favourable terms, even in highly competitive conditions.
- Speed and Certainty: With supply tight, hesitation often results in missing opportunities. Our process ensures clients are positioned to act decisively.
- Reducing Emotional Stress: In high-pressure markets, we keep clients grounded, rational and focused on their long-term goals.
A Personal Approach to an Unpredictable Market
Adelaide’s affordability problem isn’t going away overnight, but the solution for many isn’t to wait on the sidelines hoping for prices to drop. The buyers who are succeeding today are those who are well-prepared, well-advised, and have expert guidance on their side.
At Cohen Handler Adelaide, our job is not just to find property, it’s to find the right property, at the right price, in the right conditions for each client’s financial position.
If you’re feeling stuck or unsure where to start, reach out below. There is a way forward in this market. You just need the right team in your corner.