Willoughby Council to consider encouraging older residents to lease out rooms to ease Sydney’s rental crisis

Sydney’s housing crisis has become so desperate that a local council is considering encouraging homeowners to lease out spare bedrooms for renters and key workers such as teachers, nurses and police officers.

Sydney’s housing crisis has become so desperate that a local council is considering encouraging homeowners to lease out spare bedrooms for renters and key workers such as teachers, nurses and police officers.

Willoughby Council has released plans to conduct research into a ‘spare room rental’ program aimed at freeing up an estimated 28,000 empty bedrooms in privately owned homes in the local government area.

A council report states enticing older homeowners to rent out spare rooms could be part of the solution to the current shortage of housing in Sydney.

“Even if one per cent of the 17,000 households with a spare room participated in a program, this would increase the opportunities for access to affordable rental accommodation as well as delivering potential benefits for residents including rental income and a reduction in social isolation,” the council report stated.

Willoughby councillor John Moratelli – who is spearheading the idea – said rental income could assist households who may be asset rich but income poor or would appreciate some assistance around the home such as help with gardening or cooking.

Figures indicate there are around 28,000 spare rooms in the council area.

“It could help with housing affordability because there are a lot of essential workers who can’t afford to live in areas like ours,” he said.

“There would be benefits for both the owner and the renter – it could also be good for people like university students who need accommodation.”

Mr Moratelli said the program was not about avoiding the council’s responsibility to approve new housing to meet State Government housing targets, but rather aimed at easing the existing rental crisis.

Councillor John Moratelli.

It comes after Willoughby Council was “named and shamed” by the State Government as one of slowest councils in NSW when it comes to approving new residential development applications – taking around 200 days on average to assess an application.

Australian Bureau of Statistics data indicates there are almost 17,000 households with at least one spare bedroom in the local government area, while separate Census dates indicates there are around 28,000 empty bedrooms in the same area.

Early research by the council suggests many homes with spare bedrooms are owned by older people who live alone.

Areas of northern Sydney rank among some of the city’s most unaffordable suburbs.

The council report states the program could complement existing online platforms that facilitate spare room rentals and flat sharing.

The north shore is currently ranked as one of the most unaffordable parts of Sydney for renters, meaning fewer people employed in sectors such as healthcare and education can afford to live in the region.

In Willoughby alone, the median price for a strata dwelling in 2023 was found to exceed what would be affordable for an early career registered nurse by more than $500,000.

If supported by a majority of councillors at a council meeting next week, the council research will investigate attitudes of homeowners toward a spare room program and opportunities to target groups such as key workers.

It would also identify a pilot program of homeowners and renters willing to take part in the initiative.