New data reveals Adelaide’s housing crisis for young buyers

New data has revealed how difficult it is for first-time buyers to get into the market.

Data from FOUNDIT – a property market research company – which analyzed agent-advised residential sales recorded throughout the year to 2025 showed just 5.22 per cent of all sales in metropolitan Adelaide were in the under $500,000 price bracket.

The leading price bracket was $750,000 to $1m, and accounted for 35.72 per cent of all sales.

It is followed closely by $500,000 to $750,000, which accounts for about 30.92 percent of all sales.

Those looking to buy in the $1m to $1.25m bracket had 13.12 per cent of Adelaide listings to choose from, while 6.91 per cent of all properties fell into the $1.25m to $1.5m bracket.

On the other hand, the region of South Australia, offered more choice for those on a budget, with 83.74 percent of all 2025 sales under $750,000, and 51.67 percent of these under $500,000.

Head of research Kent Lardner said in the report that the $500,000 to $1m price bracket is a true “city engine room”.

“This range continues to support independent housing and family-oriented areas within the metropolitan area, without requiring a commute or reliance on multi-family housing,” the report reads.

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“Because of this, Adelaide avoids the twin pressures seen elsewhere: it doesn’t need to push buyers away from the fringes, and it doesn’t rely too heavily on housing to maintain proximity.

“Housing is always the best product, not class living.”

Mr Lardner said above $1m the market shrank rapidly, while transactions above $3m were statistically ignored, indicating a strong ceiling on income.

Aerial view of Glenelg, and Stamford Grand. Image: Provided

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He added that Adelaide did not survive the accident.

“Be patient because the city still operates as a real estate market first, not a speculative property market,” he said.

“The middle ground remains wide, the extremes narrow, and consumers face fewer forced compromises.

“In a national landscape defined by trade, Adelaide stands out as a city where the housing ladder is still running – not down.”

REISA CEO Andrea Heading. It is provided

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The chief executive of the Real Estate Institute of South Australia, Andrea Heading, said Adelaide’s strong price growth was particularly evident in the Valuer-General figures released yesterday, showing that supply and demand pressures were affecting all parts of the market.

“When you look at the number of suburbs with very low or no sales activity in Q4 2025, it tells a clear story about the availability of stock,” Ms Heading said.

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“Buyers are working, but there just aren’t enough homes to market in many areas to meet that demand.

“This type of environment naturally supports prices.

“It’s not about rapid or artificial price growth but about limited supply dealing with ongoing demand, especially in stable and lifestyle-oriented areas.”