Rental Market Crisis: Prices soar for Sydney suburbs as Australians forced back into sharehouses
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Tenant shock after his rent increased by $730 a week, and he doesn’t even live in a fancy suburb: How Aussies might be forced to opt for shared homes as rents rise
- Aussies could return to home sharing as rent soars
- Rental Prices Nationwide Rising at Record Rates
- Fewer Australians occupy stock houses, increasing demand
Wild increases in rental prices across Australia could put pressure on young Australians to return home to mum and dad or to share houses while they search for cheaper alternatives.
The sharp increases include suburbs up to 20 minutes from the CBD, with renters like Daniel Olaniran left in shock after his rent in Ryde in north-west Sydney was raised by $730 a week.
Olaniran posted a video to his TikTok channel, OlanTekkers, showing an email from his landlord informing him of the sharp rent increase.
Recent statistics show that rental prices in Mr. Olaniran’s Ryde neighborhood have increased by a staggering 35.6 percent over the past year.
The increases are similar across the country, with some economists suggesting that the move away from shared house renters during the Covid period has boosted overall housing demand.
On TikTok, Mr. Olaniran is surprised that rent in a suburb like Ryde is beginning to match the more luxurious suburbs of the city.
“These are the Bondi prices, you know, these are the Darlinghurst prices that I see on a weekly basis,” he said.
‘Maybe I have to move to Perth or something because this is a joke.’
According to statistics from the Reserve Bank of AustraliaThe decline in the number of Australians living in shared houses is one of the influences driving dramatic increases in rental prices.
The trend started during the Covid pandemic, with many Australians deciding to leave larger shared houses and move into smaller spaces with their parents or partners.
In the same period, the construction industry was beset by supply chain problems and was unable to provide new housing to meet demand.
Rental prices in Australia have risen at record rates, leaving renters like Daniel Olaniran (pictured) shocked to discover their rent has risen to unsustainable levels.
Australians have steered away from home sharing during the pandemic, however higher rental prices across the country could force them back to find a cheaper alternative (pictured, stock)
Economists have suggested that these influences have helped drive up the price of rental properties to the point where Australians will once again opt to move to shared homes.
“I think we’re going to see more and more corporations, or family groups forming,” Time Lawless, CoreLogic’s head of research, told abc.
“Simply due to the fact that the rental markets are as tight as they are.”
However, ABC business reporter Emilia Terzon reported that house share prices are no longer the bargain they were before the pandemic.
“Sometimes you can find some rare gems,” he said.
“But in places like Bondi, some people are paying $500 a week for a room.”
Demand has also been fueled by interstate and international students seeking rental properties in major cities as they return to face-to-face studies.
However, students are not the only demographic in demand for housing, as according to Claudia Conley of flatmates.com.au, an increasing number of people over the age of 55 are also looking to share.