Yorke and Mid North regions suffer highest reduction of listings

These worrying trends have been outlined in a new report released by SA Council of Social Service, which revealed rental availability had reduced significantly across most of regional SA.

The Yorke and Mid North region had the highest reduction of listings at 53.6pc, while the Eyre and Western region was back by 37pc and, the Murray and Mallee suffered a 36.7pc drop in availability. Barossa had a 34.6pc drop.

Ausveg SA chief executive officer Jordan Brooke-Barnett believed a strategy was needed to help curb the impact of rental shortages on regional communities.

"'Corporate agricultural businesses have the capacity to buy up local hostels and build accommodation but smaller businesses do not," Mr Brooke-Barnett said.

"This tells a story about the situation, anecdotally, it is one of the biggest challenges getting workers out to regional areas."

Mr Brooke-Barnett did believe the corporate strategy could ease the pressure on smaller farms.

"In a very tight market, its could take pressure off the local market for smaller businesses but it will take time for these solutions to have an effect.

"We need a strategy to get local councils and other parties to the table because there is a community benefit to having these workers in the region. But, the local government need to be doing some of the heavy lifting, every level of government needs to move in the same direction industry."

The report also revealed in the past 12 months, prices for those looking to rent in regional SA, had increased by 10.6 per cent for a unit and by 12.5pc for a house.

The Eyre and Western region was the highest, rising from an average of $280 to $330, up 17.9 per cent, Murray and Mallee, $300-$350, 16.7pc, and Limestone coast, $308-$360, 16.9pc.

SA Real Estate Institute of SA chair Cain Cooke believed rental availability in the regions was "effectively zero".

"It is extraordinarily low - the 10 year average is 10.5pc," he said.

Off the back of tightening supply and sky-rocketing demand in the past 12 months, rental prices have also risen by 8.7pc.

"There has been an increase in regional house prices of 3.8pc, which has continued to grow ahead of metro Adelaide. It is most likely being driven by flexible working and strong population growth, and it is pushing rent prices up, " Mr Cooke said.

"Part of the crisis is the exorbitant wait lists for people and potential tenants applying for dozens of properties at once."

According to Mr Cooke, there is simply not enough housing supply.

"This trend began in metro Adelaide and it has since pushed further into the regions as people make changes to their housing choices to secure a property," he said.

"We talk about the property business but this is really a people business. When we are seeing people struggling to find a home because it is so competitive, it is a big challenge."

With a total rise in prices across regional SA at 12.5pc coupled with a grim picture for housing availability, SACOSS policy and advocacy director Rebecca Tooher said the report showed the severity of SA's regional rental situation.

"There is a real lack of available rentals, with 35pc fewer properties left in regional SA in the June Quarter this year, compared to a decade ago," Dr Tooher said.

"The state government needs to move quickly to address the failure of the rental market to provide stable and affordable housing.

"This would begin by immediately capping rent price increases to CPI but the government also needs to increase investment in public and community housing, beyond the modest proposals already announced."

Dr Tooher cited a rise in short-stay, AirBnB accommodation as a contributing factor to the cost and shortage of rentals.

"Given the impact of short-stay accommodation taking properties out of the residential market, the government and councils should introduce vacancy taxes or rate surcharges on idle properties." she said.

Housing projects across regional SA are supposed to help provide respite for rental accommodation hunters and Housing and Urban Development Minister Nick Champion said the projects were crucial to ensure skilled workers had a place to live.

"We will continue to consult with key partners to help facilitate housing projects in regional SA, as part of its ongoing work to support future development," he said.

This included delivering the Regional Key Worker Housing Scheme, with a pilot program underway to build 30 new homes for police, teachers and healthcare workers across the Copper Coast, Southeast, Mid North, Far West Coast and the Riverland.

"Planning changes introduced to allow temporary accommodation in key locations will further support industry to engage workers and complete projects faster while reducing housing pressure in our regions," Mr Champion said.