Australians Turn to Share Accommodation Amidst Rising Prices
It’s getting more and more expensive to live in capital cities in Australia, and many are choosing to share accommodation to cut living costs. Flatmates.com.au reports a surging demand for shared living spaces across the country – the domain’s data for October 2023 shows an alarmingly low vacancy rate of about 0.8% nationwide when the balanced market is at 2-3%.
Let’s look at how share accommodation is impacting the living conditions in cities, and what to expect in the coming years.
More Aussies Considering Share Accommodation
Rental prices hitting historic highs has led many renters to seek larger accommodations, aiming to distribute the rent burden among housemates. Share accommodation experienced a surge in demand compared to 2022, with a marked 15.6% increase versus the previous October. The considerable traffic encountered before the usual peak of December suggests that there’s an unexpected demand for share accommodation, defying the seasonal dip seen in winter.
Claudia Conley, Flatmates.com.au’s community manager states, “It’s evident that more Australians are turning to shared living spaces due to persistent rental market pressures and an ongoing cost-of-living crisis.”
Who are choosing shared accommodation? Data indicates that even though about a third of the market are 25 to 35-year-old working adults, older 45 to 65-year-old members have increased by 10% over the last 12 months. In short, share accommodation works for a diverse group of people that includes international students, young professionals, parents, families, migrant workers, and even older sharers.
Share Accommodation Demand Likely Long Term
Share accommodation has rebounded. Compared to pandemic levels where individuals moved back home or opted for solitary rentals, nowadays the working age groups are choosing to re-enter the shared housing market.
And it’s no question that the main factors driving this surge include living costs, steep rental market conditions, and a rise in domestic and international migration heightening the demand for housing.
Conley explains that financial constraints drive 80% of flatmates’ audience to choose shared accommodation. Indeed, as long as individuals grapple with inflation and rising financial issues, opting for shared accommodation in the housing market is likely to stay long-term.
With the Reserve Bank of Australia (RBA) announcing a cash rate increase to 4.35% plus further hike predictions, it’s going to be a continuous financial struggle for most home buyers and renters. At this time, as much as 1.5 million mortgage holders are already in stress of repaying loans, and a further 1 million are “extremely at risk”.
Top Suburbs for Flat Mates
Certain suburbs are facing a predicament where a surplus of individuals is seeking share accommodation, but available homes and units are few and far between.
For instance, Sydney has six of the nation’s most in-demand suburbs: Elizabeth Bay, South Coogee, Clovelly, Curl Curl, and Barangaroo.
Meanwhile, Western Australia’s Perth has a surge in demand too, in suburbs like City Beach, East Perth, Mosman Park, and Highgate.
Across capital cities, those who allow their properties for share accommodation are single first homeowners, young couples, and empty nesters. However, more families are also open to renting out their vacant rooms when their children move out for college.
Nonetheless, the uptick in listings offered as shared accommodation is still outpaced by Aussies’s huge demand for homes and units.
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