Rent crisis leads to rising costs and increased competition in share houses
One group has been hit harder by rising rental costs and increased competition for someone to live than most others.
Many in share houses are facing rising costs and increased competition to find a room. Australia’s biggest share accommodation site Flatmates.com.au recently undertook a survey of 9,000 members, shedding light on some of the key challenges currently facing those in share houses.
In New South Wales, 46 per cent of respondents had experienced a rent rise over the past six months. Of those that did experience a rent rise, one in two stated that either they or their housemate(s) were struggling to pay the rent.
Finding a place to live in a share house is also taking longer amid growing competition. Previously, 71 per cent of sharers in New South Wales were able to find a home in four weeks or less.
This has now dropped to just 39 per cent.
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In part, this increased competition is likely due to the broader range of people looking to live in share houses. Gone are the days where share houses were dominated by university students on part time incomes. Rising rents and high property prices are driving more people to share.
In New South Wales, 49 per cent of those surveyed were working full time, compared to 27 per cent who were studying. The average age of those sharing has also increased.
Comparing data from the 2021 and 2016 Censuses, the number of 15-to-24-year-olds sharing has fallen by 16 per cent. In contrast, those aged 65 and older were the fastest growing category, with the number of sharers jumping 33 per cent.
According to Flatmates.com.au, the most common age group sharing in New South Wales is the 25- to-34-year-old bracket, accounting for 41 per cent, while nearly a quarter are aged over 45.
The fact that more older Australians are choosing to live in share houses is unsurprising. Rents in Greater Sydney climbed 10 per cent over the 12 months to September, with those in regional New South Wales up 12 per cent.
The cost of buying a property has also become more prohibitive. While property prices in Greater Sydney have fallen this year, as of November they were down only 7 per cent from their peak, still sitting 22 per cent above March 2020’s pre-COVID levels. And borrowing costs are surging.
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Among those living in share houses in New South Wales, three in four state affordability as their primary reason for sharing. With rents predicted to continue rising and the cost of buying still out of reach for many, the number and diversity of sharers is likely to grow.
Anne Flaherty is an Economist at PropTrack.
Originally published as Rent crisis leads to rising costs and increased competition in share houses