Adelaide’s Housing Squeeze: Build Up, Not Out

Adelaide could unlock significant housing supply by building apartments and townhouses above major shopping centres, with estimates of 7,500 homes across 13 sites, potentially rising to 22,000 with greater height allowances. The concept offers higher-density housing without further urban sprawl and may attract retirees, first-home buyers and others seeking access to shops, services, entertainment and public transport. Key challenges include structural capacity, parking, traffic and whether buyers will accept the required prices. Interest rates remain the strongest influence on housing affordability and buyer borrowing capacity. With the cash rate at 4.35%, expectations remain uncertain, ranging from further increases to future cuts. Adelaide’s underlying problem is still limited housing supply amid strong demand, infrastructure constraints, high construction costs and population growth, which could further pressure rents. Buyers also closely react to market headlines and changing sentiment.