Survey notes a surge in people over 55 entering the share accommodation market
A recent survey conducted by Flatmates.com.au has shed light on the growing trend of Australians opting for share house living amidst the cost-of-living crisis and a tight rental market.
The survey, which included 10,300 respondents consisting of both room listers and renters from across the country, revealed that 48% of participants cited affordability as the primary reason for choosing share accommodation over independent living, according to a report by The Australian.
The past year has witnessed a significant increase in individuals entering the share accommodation market for the first time, with 23% of respondents indicating their initiation into this housing arrangement. Notably, the survey identified a surge in the number of individuals aged between 55 and 64 seeking share houses, marking a 21% annual increase, The Australian reported. The second-largest growing demographic was individuals aged between 65 and 74, experiencing a 13% rise since the previous year's survey.
Flatmates.com.au has also seen numbers rising month on month, with an earlier survey revealing that the number of new members joining the platform in October was up 11.2% from an already busy September.
Claudia Conley (pictured above), community manager at Flatmates.com.au, attributed the rising trend of spare room listings to homeowners and renters seeking additional income streams. She told The Australian that 67% of respondents listing a spare room mentioned interest rate rises as the primary reason for doing so, while 86% cited financial reasons such as mortgage repayment assistance and supplementary income generation. Moreover, the survey indicated that 47% of respondents who identified as homeowners had decided to offer their homes as share houses for the first time in the past 12 months.
While the cost-of-living crisis continues to exert pressure on homeowners and occupiers, the availability of suitable accommodation remains limited. According to PropTrack's Market Insight Report, rental vacancy rates tightened further in October, reaching a national average of 1.02%. This represents a decrease of 0.06% and falls far short of the ideal range of 2% to 3% or the pre-pandemic rate of 3.3%.
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The scarcity of available housing can be attributed to various factors, including an influx of overseas migrants, particularly international students and temporary visa holders, as well as a slowdown in residential construction projects nationwide.
Flatmates.com.au reported that over the past six months, 32% of listings found a flatmate in under two weeks, up from 23% before the pandemic, The Australian reported. Conversely, 37% of those seeking a room struggled to find suitable accommodation in the past year, representing an increase from 28% in 2022.
“Over the past year, our audience has grown in size and diversity, and with the peak season for share accommodation at our doorstep, we expect demand for share house living to grow.,” Conley told The Australian. “With the national median rent for a room in a share house currently sitting at $290 per week, renting out a spare room is an attractive offset to rate rises for many homeowners. Not only does it provide additional income, it also helps to increase the limited supply of rooms available to rent.”
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