Share house demand booms to counter rental crisis, cost-of-living pressure

Young people are seeking housemates, and more homeowners and empty nesters are offering their rooms in a boom spurred by cost-of-living challenges.

Share houses are increasingly becoming the norm. Supplied

More Australians of all ages are resorting to home sharing in order to make ends meet.

Popular share house website Flatmates.com.au recorded its busiest month on record in May, with 70,000 people signing up.

The surge came as the Reserve Bank continued to raise interest rates to counter runaway inflation, with further increases ­expected in the months ahead.

Flatmates.com.au community manager Claudia Conley said many people were trying to share accommodation in order to get by. “For many people who would have been living in solo rentals, their rent has gone up and they can no longer afford that,” Ms Conley said.

“Obviously living in a share house with multiple people, it can make the cost lower by splitting rent and bills three or four ways.”

RBA governor Philip Lowe last month encouraged the shift to home sharing to relieve pressure on the housing market as migration returns and residential building levels fall.

But those looking to share are struggling to find a room. East Perth and neighbouring Northbridge in Western Australia are the two most in-demand suburbs, with 255 and 164 property seekers, respectively, but only one room is available in each suburb.

In Sydney’s centre, 133 potential flatmates have zero choices.

Louis Christopher, SQM managing director.

While young people are feeling the crunch of the current economic condition more than older generations, a larger number of those aged 45 to 60 are signing up to Flatmates.com.au and offering rooms in their home.

“We’re actually seeing more and more homeowners and empty nesters, due to the rate rises, renting out their spare room,” Ms Conley said. “They’re looking at that spare room and you know that’s gathering dust and they’re thinking, ‘actually, I could be renting this out and earning a bit of extra revenue to help pay off my mortgage’.”

Through the pandemic, the average number of people per household fell as people sought their own space.

The change created greater demand for homes, with data from research firm SQM ­Research showing rental costs nationally have climbed 39 per cent over the past three years.