Shared home living is growing as the rental market remains tight and the high cost of living prompts homeowners to rent out their spare rooms.
Online shared accommodation site Flatmates has recorded an 18.8 percent increase in new listings since this time last year, but even with that boost, demand for rooms still dramatically exceeds supply.
The platform’s community manager Claudia Conley said there were more than 100 people looking for each property listed in many suburbs.
Demand for rooms continues to dramatically outstrip supply during Australia’s rental crisis
Flatmates has recorded an 18.8 percent increase in new listings since this time last year
Ms Conley said the increased interest in share properties, represented by a record 212,000 active members on the platform in January, was partly fueled by normal domestic and international migration trends in the summer months.
“The university semester is about to start, many members are looking for new jobs, most leases are being renewed at this time of year and migration is high as people head to Australia for that quintessential Australian summer experience,” said she.
But she said the platform’s record activity was also supported by the high cost of living and the rental crisis, which pushed more people toward sharing housing.
Executive director per capita Emma Dawson said more people needed to share a home to bring down rental costs, while more homeowners needed to rent a spare room.
Vacancy rates have been extremely low, causing rents to rise. Ms Dawson said this was forcing more people to take up sharing or stay in these schemes for longer, especially young couples who were struggling to buy at the same time.
At the same time, mortgage holders were hit by several interest rate increases and many hoped to recoup those costs by renting out a room.
“These two things are leading to a spike in the number of multi-occupant homes,” she told AAP.
She said this partially halted the trend towards smaller household formations during the pandemic, when space became a priority.
More people are being pushed into share properties, especially young couples who were struggling to buy at the same time (pictured: people queuing for a Bondi rental property)
“And now that immigration has returned and rental property vacancies have really hit, we’re seeing more and more people needing to share homes to reduce their rental costs, and more homeowners needing to rent out a spare room to reduce their rental costs. to make their mortgage payments.”
The Reserve Bank’s latest Monetary Policy Statement noted that while the average household size in capital cities had increased over the past year, it remained well below pre-pandemic levels.
Ms Dawson said the number of residents per household was still not at pre-pandemic levels, but forming larger households would not solve affordability problems at the source.
“No homeowner who rents out a spare room will be affected by the rental and housing crisis in this country,” she said.
Part of the problem has been a lack of well-located and suitable supply, including social housing, which can take pressure off the private market.
There were also demand-side policy options, she said, including eliminating tax breaks that distort the market.