In an effort to transform the dream of homeownership into a reality for South Australian workers, the SA Government has introduced a new initiative. The Rent-To-Buy Affordable Housing Initiative, unveiled as part of the 2025-26 State Budget, offers a significant opportunity for eligible renters to own a home.
This initiative is designed to allow long-term renters to buy one of 100 homes currently under construction by the South Australian Housing Trust. It offers an affordable transition from renting to homeownership by renting out homes at 75 per cent of the market rent for up to three years, thereby enhancing the tenants’ ability to save.
On the scheme, Peter Malinauskas said, “Through the Housing Roadmap, we have been pulling every lever possible to get more South Australians into their own home – including abolishing taxes, releasing record amounts of land and delivering record amounts of infrastructure.”
The timing of the launch takes advantage of the state’s current success in the housing sector. South Australia has been named the nation’s best performing state in terms of housing market performance, with a score of 88 out of 100, according to the latest HIA Housing Scorecard.
Contributing to these statistics are policy initiatives including planning reforms, faster approvals, the abolition of stamp duty for first homebuyers on new homes, investment in water infrastructure, and significant investment in training skilled trades.
State Treasurer Stephen Mullighan described the Rent to Buy initiative as a viable solution for South Australians trapped in the rental market.
“The Rent to Buy initiative is a genuine path to help these people own a home,” Mullighan said.
“These affordable homes are already under construction and will soon be rented below the market rate.”
“Working with HomeStart, the tenant will be given every opportunity to save for a deposit so they can become a homeowner.”
Meanwhile, Nick Champion, Minister for Housing and Urban Development, said, “We know secure and affordable housing is fundamental to strong communities and a thriving economy, and through this scheme, we’re investing in the wellbeing and stability of families across our state.”
Stephen Knight, Executive Director of Housing Industry Association SA echoed the sentiment, saying, “This initiative is a great idea and is just one more reason why SA leads the nation for housing market performance and why it has once again topped the HIA Housing Scorecard.”
“It has the potential to be a game changer for getting long term renters into home ownership. Bringing more people into the new home market means more work for builders and suppliers and provides long term confidence for them to employ and train more workers and invest in their business,” Knight said.
The new scheme prioritises long-term workers who have faced barriers accessing the housing market despite extended periods in the rental system. By the end of the rental phase, participating tenants have the first option to buy the home at a previously fixed price, shielding them from future market price hikes and helping them to plan financially for property acquisition.
This initiative forms part of South Australia’s ongoing strategy to improve housing availability and affordability.
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