Renters form larger households as rising housing costs squeeze budgets
Australia’s rental crisis is pushing more people to share homes with relatives, friends and housemates as limited supply drives rents higher. Housing experts warn that private renters are being overlooked in efforts to make accommodation more affordable.
For Perth renter Grady Toomath, sharing a home with his brother and another housemate has become a financial necessity. He said the weekly rent for their property has increased from $315 in 2019 to $715, a rise of about 127 per cent over seven years.
Brisbane real estate agent Avi Khan said multigenerational families and groups of friends now account for around one in five rental applications handled by his agency.
He said many renters are combining their finances to compete for properties and manage rising costs, even when shared living is not their preferred choice.
The pressure comes amid a severe shortage of available rental homes. According to Domain data cited in the report, Australia’s national rental vacancy rate stood at just 1 per cent in the September quarter, meaning only about one in every 100 rental properties was vacant. Capital cities outside Sydney and Melbourne faced even tighter conditions.
Lyndall Bryant, a senior lecturer in property economics at Queensland University of Technology, said renters in the private market had received less attention than prospective home buyers.
Government initiatives have included first-home buyer support, increased Commonwealth Rent Assistance payments in 2023 and 2024, and efforts to establish more consistent rental rights across Australia.
However, Dr Bryant noted that social and community housing accounts for only about 3 to 5 per cent of the country’s total housing stock, leaving many households dependent on private rentals.
Debate has also emerged over federal tax changes announced in the May budget. Some property industry representatives argue the changes could discourage investors from providing rental homes. Housing affordability and the impact of these policies remain contested issues.
Sydney accountant Keegan Du Preez, who owns nine investment properties while also renting, said longer leases could help tenants manage their budgets. He favours 24-month agreements where possible, giving renters greater certainty over their housing costs.
He also pointed to higher interest rates, rising repair bills and increased trade costs as pressures on landlords, while saying he tries to avoid rent increases where possible.
With rents continuing to rise and vacancies remaining scarce, many Australians are increasingly relying on shared living arrangements to secure a place to live. Experts warn that without more rental supply and effective support for tenants, affordability pressures are likely to remain a major challenge.
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Source : ABC News
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