Couples shacking up sooner to save money on housing

Some couples are rushing their relationships to save on housing costs, but the move comes with a warning from money experts.

High household rents are speeding up romances across Australia, new research suggests, as more partners share homes to cut their bill pain.

One in 10 renters surveyed by comparison website Finder say they have moved in with their partner earlier than expected to help make rent more affordable.

However, shacking up quickly can be dangerous both emotionally and financially, money experts warn.

Finder’s survey of 441 renters also found some people were moving in with a partner to improve the likelihood of rental or financial approval.

“Lenders won’t lend money if they don’t think applicants will be able to make the repayments on their own, so couples are pairing up to help their chance of approval,” Finder spokeswoman Rebecca Pike said.

High housing costs can lead to bills piling up for young renters. Picture: iStock

“Finding affordable housing is a growing stress for Australians and some are resorting to being housemates out of convenience.”

Property rents are soaring, with PropTrack research finding the national vacancy rate has halved since 2019 to 1.47 per cent, and just 17.6 per cent of properties listed today are for rent below $400 per week.

Ms Pike said moving in quickly with a romantic partner was “a lot of added pressure on a new relationship”.

“If the relationship ends it could be much more complicated for individuals to go their separate ways,” she said.

There were alternatives, including reducing debt, increasing earnings and moving back in with family until a live-in relationship felt right, Ms Pike said.

“Sharing a home is a big step especially if you co-sign a lease or a mortgage, so don’t rush the arrangement just to reduce hip pocket pain.”

Money coach Karen Eley said the dynamics of a relationship could change when people moved in together, “particularly where someone is moving in with their partner who owns the home and is more financially secure than the other”.

Money coach Karen Eley. Picture: Supplied

“If it’s early in the relationship it can lead to an imbalance of perceived power in decision making for both of them,” she said.

“When you’re still in the honeymoon phase you often haven’t yet uncovered the small things that you disagree with or will annoy you.

“Moving in for the wrong reasons or too early in the relationship can end up being more costly in the long run, both financially and emotionally. If you need to break the lease, or move out quickly there are additional costs incurred which often outweigh the savings you’d initially anticipated.”

Ms Eley said other options to save money on housing included:

• Choosing a location further from the CBD with lower rents.

• Considering a boarding arrangement, such as those advertised on university noticeboards.

• Moving back home with parents or other family members.

• Renting with a friend or someone else you have known for a long time.