Australians are paying up to $600 a week to rent a single room in some of the country’s most expensive suburbs, with the fastest-growing cohort turning to share housing aged between 55 and 64, new data has revealed.
The 10 most expensive suburbs to rent a room are all in Sydney, according to a survey of more than 10,300 respondents from across Australia by Flatmates.com.au.
According to the survey, the main reason almost half (48%) of all room listers and renters live in share accommodation was because they cannot afford to live on their own.
The Sydney suburb of Warriewood on the northern beaches was found to be the most expensive location to share a house, at $600 a week. St Kilda is the only Victorian suburb, at $490 a week. It ties with Rose Bay, which is number 10 on the list.
In the past year, almost a quarter (23%) of respondents entered the share accommodation market for the first time, with people aged between 55 and 64 the fastest-growing demographic, recording a 21% annual increase.
Those aged between 65 and 74 were the second-fastest-growing demographic, rising by 13% since last year’s survey.
The Flatmates.com.au community manager, Claudia Conley, said more Australians were looking at share housing “to navigate the rental crisis and tackle the rising cost of living”.
“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,” she said.
Two-thirds (67%) of respondents listing a spare room cited interest rate rises as the reason, while 86% said financial reasons, including helping to pay off the mortgage and making additional income.
In the past year, there has been an increase in the number of homeowners renting out spare rooms, with almost half (47%) becoming landlords for the first time.
“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,” Conley said. “Not only does it provide additional income, it also helps to increase the limited supply of rooms available to rent.”
A highly competitive rental market and record-low vacancy rates across the country have meant people listing rooms for rent are finding it much easier to fill them. Over the past six months, 32% of listings found a flatmate in under two weeks, up from 23% before the pandemic.
Out of those seeking a room, 37% struggled to find accommodation in the past year, up from 28% in 2022. Only 39% of respondents said they were able to find a place in less than four weeks, a drop from 66% before the pandemic, while 25% settled on a place that was not quite right for them in order to avoid homelessness, up from 18% in 2022.
The challenging rental landscape and ongoing affordability pressures have seen an evolution in the typical, university student-dominated demographic seeking share house living, Conley said.
“Share accommodation is a long-term and legitimate way to live for many Australians and until more homes are built to keep up with the demand for rentals, we expect share accommodation to remain popular,” Conley said.
