The Committee for Adelaide’s latest Benchmarking Report paints a picture of a city that is bursting with potential yet faces significant risks that must be addressed quickly.
If Adelaide hopes to maintain its high quality of life, family appeal and solid industry mix, it must act now to overcome pressing challenges in areas such as productivity, housing, transport and sustainability. Industry, government and community must come together to capitalise on Adelaide’s existing strengths, protect our long-held advantages and embrace growth opportunities.
The report, compiled by global intelligence firm, The Business of Cities, with the support of RAA, Hames Sharley, JLL, Mitsubishi Motors Australia, the Adelaide Economic Development Agency and the City of Adelaide, reveals that Adelaide has made great strides in key areas such as innovation, business appeal, population growth and reputation.
Adelaide is a global leader in university specialisms, rated 3rd out of peers for high-impact research and 4th fastest for growth in venture capital growth over the lats 5 years. Its growing defence, health, and creative sectors give it a competitive edge, and the city continues to be known for its quality of life, natural beauty, and vibrant festivals. With a population expected to grow by 40% over the next 25 years, from 1.5 to 2.2 million by 2051, Adelaide has a small window of opportunity to build on this momentum. We have to act now.
However, the report also exposes critical weaknesses that threaten to undermine Adelaide’s future success. Productivity growth is lagging, with the city ranked 12th out of 20 peer cities, 20% below the national average. While Adelaide excels in research and development (R&D) in some areas, it spends 25% less on R&D than American counterparts, and half as much as faster-growing European cities. This lack of investment in innovation is stifling Adelaide’s potential to attract global talent, increase productivity and drive economic growth.
Further compounding these issues is Adelaide’s deteriorating housing affordability and underdeveloped infrastructure. Adelaide now ranks 9th for liveability, affordability, and wellbeing, with housing costs rising rapidly. It is now sitting bottom 8% for homeownership affordability in the English-speaking world. Doing density well is no longer an option, it’s essential. There’s an ongoing need to ensure sustainability, energy efficiency and quality when planning and delivering new homes, while balancing affordability. We must build smarter, not just faster. We must maintain quality, not just quantity. And we must make the most of our remaining urban land.
With 4 out of 5 journeys made by car, Adelaide residents spending more time driving than most and it now takes longer to drive 10km than it does in other peer cities. Congestion is on the rise and is being noticed by residents, once accustomed to a 20-minute commute. With car-dependency still high, Adelaide’s public transport system is not keeping pace with the city’s wider-growth model and active transport potential is also not being realised. Adelaide finds itself at the bottom of the pack for cycling infrastructure among peer cities – with a $2m State Bicycle Fund compared to the likes of Austin which has already committed a total of A$190m to bikeways and urban trails as part of a A$1.8b, 2,000km cycling network. These issues threaten Adelaide’s reputation as an affordable, liveable and easy-to-get around city, particularly as we are actively trying to attract and retain young people, local talent and skilled workers.
Adelaide’s human capital drivers are positive, with the 3rd strongest demographic ingredients for a high skilled economy among its peers and share of jobs in typically higher-paying sectors growing at a faster rate than others. Adelaide’s universities, specialist academic capability and growing defence, health, events, arts and creative sectors remain key strengths, with higher education and student appeal providing a significant boost to Adelaide’s global reputation. However, Adelaide continues to see newcomers outnumbered by those who leave to travel, live and work elsewhere. Adelaide has work to do to be front of mind for international investors, businesses and talent looking to Australia.
The city’s efforts in decarbonisation and sustainability are commendable, with South Australia leading the way in renewable energy adoption. Yet, Adelaide still lags behind in areas like EV infrastructure, with far fewer charging stations than European cities like Valencia. There is a clear opportunity for Adelaide to leverage its abundant solar energy resources to power homes and vehicles alike and to become a leader in EV adoption and bi-directional charging technology.
We must look to successful examples from other cities that have faced similar challenges. San Diego and Toulouse, for instance, have capitalized on their local defence sectors, while cities like Auckland and Austin have successfully tackled housing density. Adelaide should take inspiration from these examples and adapt them to suit its unique strengths and opportunities.
To realize its potential, Adelaide must act decisively. Industry leaders, universities, community groups and government officials must collaborate to create a shared vision that addresses the city’s most pressing issues while unlocking new opportunities for growth.
The future of Adelaide lies in embracing innovation and sustainable growth across all sectors—whether through new technology, better infrastructure or strategic (and creative) urban planning. Industry players like Mitsubishi Motors, JLL, Hames Sharley and RAA are already making bold moves, and now it’s time for government, industry, academia and community to work in tandem to create a conducive environment for innovation, collaboration and action.
Adelaide’s future is not set in stone, but the city has the ingredients to be a global leader in innovation, education, sustainability, and quality of life. The window of opportunity is open, but it won’t remain so for long. Industry and government must come together to prioritize infrastructure development, foster innovation, and address the city’s affordability and connectivity issues.
Only then will Adelaide truly realise its potential as a thriving, world-class city.
View the 2025 Benchmarking Adelaide report here.
Sam Dighton,
Chief Executive Officer, Committee for Adelaide
