The state government says affordable rentals and new housing will be part of a new development in Adelaide's north, amid the state's ongoing housing crisis.

The project will see 249 new homes constructed over 16.6 hectares of land along Newton Boulevard in Munno Para as part of the Playford Alive development overseen by Renewal SA. 

The boulevard will also be extended to Stebonheath Road to reduce local traffic congestion as part of the $40 million project. 

The state government said 161 homes will be listed as affordable, with the allotments sold at or below the affordable price point for land, which currently sits at $187,650.

Housing Minister Nick Champion said Renewal SA will also deliver a further 25 affordable rentals to the site, which will be leased to tenants at less than 75 per cent of market rent. 

"We know that the state and the nation is in the grips of a housing crisis, an emergency where people cannot find affordable housing either for sale or for rental," Mr Champion said. 

"Affordable rental locks in affordability full time, it locks in that affordability for the community and we know that continues tenant after tenant because the community housing provider will be here to provide that affordable rental project."

Project to meet 'growing demand'

The latest project follows a number of recent land releases announced by the state government which will include the construction of properties at Aldinga, Noarlunga Downs and Golden Grove.

Mr Champion said early works will begin within six months, with construction of the first homes set to start in August 2024 and residents expected to move in from late 2025.

He said the development will enable more South Australians to access housing sooner. 

"Teachers, doctors, nurses, young professionals ... getting their chance to own their own home and taking them out of the rental market and putting them into a home of their own," he said.

"These new homes, surrounded by established amenities and transport links, will help meet growing demand in Adelaide's north as we address the housing crisis."

City of Playford Mayor Glenn Docherty said local demand for affordable housing has never been higher. 

"Over the last five years, seven people a day have moved in to the City of Playford so we know there's plenty of choice here in the northern suburbs of Adelaide," Cr Docherty said. 

"This part of Munno Para west is particularly fast growing ... this new development here with many more affordable homes will allow new and emerging communities to continue to grow."

Owning home becomes 'distant dream', locals say

Andrews Farm resident Amy Darroch said she has felt the impact of the housing crisis, with her rent recently increasing to another $75 a week. 

"It makes it hard to try and put some money away to save to actually buy a house, and then to buy a house at those prices is insane," she said. 

"We've had to find different types of jobs just to make ends meet."

Ms Darroch said she believed currently there were not enough affordable housing options in the area. 

"For people that are living in cars and things like that at the moment, it's just really sad because the pricing is really high," she said. 

Local Amy Jones welcomed the state government increasing housing supply, but said some people still may not deem them as "affordable".  

"Everyone has different ideas of 'affordable'," she said. 

"Rent prices keep going through the roof and it's become impossible to buy a house... it's become a distant dream."