Why Now Is the Best Time to Stop Renting and Build Your First Home in Adelaide

Why Now Is the Best Time to Stop Renting and Build Your First Home in Adelaide

If you’ve been renting in Adelaide, you’ve likely noticed how rental prices have surged in recent years. With availability tightening and weekly costs rising, many South Australians are now rethinking the long-term value of renting. The good news? Now is one of the best times to stop renting and build your first home. Here’s why.

Rental Crisis Driving Change

Across Adelaide, the rental market is under pressure. Vacancy rates are sitting at record lows—often below 1% in many suburbs—while rents continue to rise year after year. In some areas, tenants are paying $500–$600 per week for modest homes. With little stability and increasing competition, renters are being squeezed financially.

Instead of continuing to pour money into rent, many are realising that owning a home can be just as affordable—if not cheaper—long term.

• The median residential land price in Greater Adelaide is now approximately $295,000. That’s a 15.7% increase over the past year alone .
• While some fringe or regional lots may occasionally list under $250,000, the vast majority of new land on the market exceeds $300,000 to $350,000

🏡 House & Land Package Pricing in 2025

• Entry-level fixed-price house and land packages in growth corridors like Munno Para, Angle Vale, Gawler, and Mount Barker now typically start around $550,000 to $600,000
• For example, packages from builders such as Hickinbotham and others in Playford Alive begin around $552,200 and range up to the mid‑$600,000s for 3–4 bedroom homes on approximately 300 m² blocks
• A broader example list from realestate.com.au highlights available packages between $545,000 and $695,000 across suburbs like Munno Para, Virginia, Blakeview, and Davoren Park

📉 Broader Market Context

• The median house price in metropolitan Adelaide was around $861,000 as of May 2025—up 10.7% year-over-year
• That means full-new builds (land + construction) often push well past $900,000, especially in established suburbs. Even basic homes start from the mid‑$700,000s at best

Government Grants and Support

If you’re a first home buyer in South Australia, you could be eligible for significant financial support:

• First Home Owner Grant (FHOG): Get $15,000 towards your new build.
• Stamp Duty Relief: Save thousands on stamp duty when buying new or building on vacant land.
• HomeStart Finance: Access low-deposit home loans backed by the SA Government.
• First Home Guarantee (Federal): Buy with as little as 5% deposit and avoid lenders mortgage insurance.

These grants and programs can reduce your upfront costs dramatically and help you get into the market sooner.

Interest Rates and Long-Term Stability

While interest rates have risen compared to pandemic lows, they remain historically moderate. Locking in a fixed home loan today provides more financial certainty than fluctuating rents. Even if repayments seem similar to what you're paying in rent, you’re building your own asset—not someone else’s wealth.

Plus, with Australia’s strong long-term property growth, owning a home is not just about shelter—it's an investment in your future.

Make the Move in 2025

Leaving renting behind can feel daunting—but with the right guidance, finance support, and access to land and builders, it’s more achievable than many realise. At SA Home Buyer, we help renters become proud homeowners by matching them with affordable house and land packages, trusted builders, and the grants they’re entitled to.

Take the first step today. Your new home in Adelaide could be closer—and more affordable—than you think.

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Written July 2025

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