Desperate Sydney renters’ willing to give it all away

Desperate Sydneysiders are exploring all sorts of options just to secure a roof over their heads.

Many Sydneysiders are choosing to give up their privacy.

A study has shown that many Sydneysiders are giving up their privacy to ensure a roof over their heads.

Share housing is emerging as the default “release valve” in the current housing market, according to a study by the University of Sydney’s School of Architecture, Design and Planning.

The study, by Professor Nicole Gurran, Dr Zahra Nasreen and Dr Pranita Shrestha, has shown that in the absence of secure and affordable alternatives, many Sydneysiders are turning to share housing.

Share houses are in high demand due to rental shortages.

Almost 11 per cent of inner Sydney houses is used for share accommodation. Picture: Simon Bullard

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It reveals four per cent of Sydney’s households are classified as “group”, which includes unrelated adults living together, while inner Sydney’s “group” households have risen to almost 11 per cent.

Professor Gurran said informal sharing arrangements had limited research and policy attention due to being difficult to detect and monitor.

The study focused on Sydney and looked at online platforms such as Flatmates.com.au.

It stated that while living in a share house was once an important rite of passage for young adults, it has become more of a necessity with rising barriers to home ownership and the lack of rental supply.

The study says share houses have gone from being a rite of passage for young people to a necessity for many.

“Within these contexts, new sharing practices and informal markets for shared accommodation are emerging, often via online platforms,” Professor Gurran said.

“Through these platforms we are seeing a sustained demand for share housing exceeding the advertised supply rates.

“In fact, this demand was despite a period of low population growth over the COVID-19 pandemic, and despite wider opportunities to relocate to potentially lower cost housing markets while working remotely.

“This sustained demand for share housing implies that in expensive cities such as Sydney, affordability pressures are sufficient to outweigh preferences for privacy, autonomy, or housing amenity.”

Shared housing supply by suburbs. Source: Flatmates accommodation listings Aug 2020.

Sydney shared housing demand by suburbs Source: Flatmates people’s listings Aug 2020

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The study showed that a quarter of people wanting to share had a rental budget of up to $200 per week, meaning that less than five per cent of share vacancies were affordable for them.

It stated share housing was vital as a default market for vulnerable people in the housing system, those with income constraints, young people at transitional points as well as workers looking for accommodation close to their job locations.

However the researchers said this brought with it potential new risks for vulnerable renters with more scrutiny and policy intervention needed.

“The policy opportunity is to repurpose platform technology for social good – connecting the diverse groups of people now unable to access affordable rental housing in the private market – with appropriate and secure alternatives,” Prof Gurran said.

“As we know, there is a chronic shortage of affordable housing, and the longer-term implication of this study adds to the extensive volume of research demonstrating that policy intervention is needed to support and subsidise affordable rental housing in high demand locations.

“It is also important therefore, to ensure that future residential developments are able to accommodate different household types.”

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Originally published as Desperate Sydney renters’ willing to give it all away