Adelaide employment vacancies are at their highest level in years

Adelaide’s tight rental market is easing, new data reveals, but slowly and experts warn it won’t last.

The latest SQM research data shows Adelaide’s rental vacancy rate – which is the percentage of available rental properties that are vacant – reached 0.9 per cent by December 2025.

It is the highest vacancy rate since mid-2021 when it was less than 1 percent.

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

Despite recent increases, hiring conditions remain difficult due to limited availability.

SQM Research managing director Louis Christopher said traditionally there were other recruitment options available in the summer.

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“Normally we get an increase in vacancy rates this time of year,” he said.

“We have a lot of students who finish the year and go back home, even if they finish well,” he said.

“In the summer, it’s a really short time.”

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

While the vacancy rate is increasing, Mr Christopher said it will not stay that way for long.

“It’s going to be tough,” he said.

SQM research managing director Louis Christopher.

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“Adelaide used to have a strong rental market compared to other big cities.”

Mr Christopher said the influx of overseas residents moving to Adelaide post-Covid had impacted the city’s rental market in recent years, with vacancy rates falling below 0.5 per cent in various areas between 2022 and 2024.

“It really started when we were stranded in eastern Australia,” he said.

“Immigrants tend to look for rental properties first, which is why demand for rental stock in Adelaide is increasing.”

Harris Real Estate managing director Phil Harris said the market is a little softer than before, as his agency has more rental properties available now compared to the same period last year.

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Harris Real Estate managing director Phil Harris.

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While seasonal performance was partly responsible, he said changes in the 2024 law that meant tenants could break their leases and pay a reduced rate had an impact.

Under the changes, tenants now only have to pay one month’s rent if there are less than 24 months left on their lease, as well as other advertising and re-letting costs.

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

“There is no doubt that there are more tenants who are willing to cut houses now than before.”

Tenants not having to share as much personal information with landlords and property managers as they did in the past was also slowing the process of filling rentals, Mr. Harris said.