Top State Paves Path to Home Ownership
The Australian dream of owning a home will become a reality for South Australian workers thanks to a new scheme announced by the Malinauskas Labor Government.
The Rent-To-Buy Affordable Housing Initiative will create a pathway for eligible long-term renters to buy one of 100 homes currently under construction by the South Australian Housing Trust.
The launch of the scheme in the 2025-26 State Budget comes as South Australia is once again named as the nation’s best performing state for housing market performance, in the latest HIA Housing Scorecard.
South Australia ranks as the clear number one against other Australian states, with a record high score of 88 out of 100.
The HIA report has South Australia leading the nation on:
The report shows the number of houses commencing construction has surged to 23.1 per cent above the decade average, supporting jobs and economic growth.
The result follows South Australia being ranked number one in the country for Housing Policy, with the HIA recognising the importance of key policy initiatives in the Premier’s Housing Roadmap, including planning reforms and faster approvals, the abolition of stamp duty for first homebuyers on new homes, record investment in water infrastructure and significant investment in training of skilled trades.
Under the new rent-to-buy scheme, homes would be rented out to the eligible renters for up to three years at 75 per cent market rent, giving the tenant greater capacity to save money.
Eligible renters are people who have been renting for a minimum of 24 months, are South Australian residents, do not currently own a property and meet the HomeSeeker SA eligibility.
At the end of the rental period, tenants will have the first right to purchase the home, supporting their journey from renting to ownership.
The price for the home is fixed at the time they move in – meaning they are protected from any further increases in the property market when it comes time to buy.
Renters would be pre-qualified to test that they meet the criteria and are expected to have the capacity to purchase the property at the end of the lease.
The initiative will be open to all eligible purchasers; however priority will be given to individuals who have been employed long-term and have spent an extended period in the rental market without the opportunity to transition into home ownership.
Tenants will enter the program on the basis that they are intending on purchasing the property and will initially be referred to HomeStart.
This initiative is designed to assist long-term renters and key workers that are struggling to break into the property market save for a deposit and prepare for homeownership.
This innovative approach aligns with the State Government’s ongoing commitment to increase affordable housing supply and support South Australians into home ownership.
As put by Peter Malinauskas
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.
These policy initiatives have already been ranked as the best in the nation by the housing industry.
Now they’re delivering results, with the HIA independently assessing South Australia as the best ever jurisdiction in Australia at delivering homes.
But we’re not resting on our laurels. This Rent to Buy initiative will provide yet another way for young South Australians to achieve the dream of home ownership.
This is important economic policy for our state’s future.
As put by Stephen Mullighan
South Australians shouldn’t feel trapped in the rental market. The Rent to Buy initiative is a genuine path to help these people own a home.
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.
As put by Nick Champion
We want to get South Australians off the rental roundabout and into home ownership.
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.
South Australia is setting the benchmark for housing policy and market performance and our Government will continue delivering real results for South Australians.
As put by Stephen Knight, Executive Director, Housing Industry Association – SA
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.