The rising cost of living, along with the ongoing rental crisis, has pushed more renters into share accommodation as they struggle to pay the bills.
According to the latest results from the Flatmates.com.au National Share Accommodation Survey, 43% of respondents cited this as the reason for moving into a share house.
Due to increasing rents and low property availability, nearly a quarter have had to choose share accommodation to avoid homelessness.
It is a sad reality that more young Australians are struggling to afford somewhere to live.
When they spend more of their income on rent, it denies them the opportunity to save for a deposit to buy a home, something their parents were able to do.
This is a predicament they are well aware of, with more than half of survey respondents agreeing that the Australian dream of owning property is unattainable for young people.
Median weekly rents have increased significantly since the start of the pandemic and are now 45% higher than in March 2020.
Over a third of survey respondents said they had seen their rent increase in the past six months, and half said it was more than expected.
However, 57% of respondents now struggle to pay their rent, indicating there are other factors at play, such as the general increase in the cost of living, not just increased rent. This is making it even harder for renters to make ends meet.
In fact, 29% of respondents said they have had to increase their hours or find a different job to meet the rising cost of living and renting.
These financial pressures have caused the surge in renters choosing share accommodation rather than renting on their own.
One in five said they had to move back home with their family due to not being able to afford rent in a suitable location.
Although 45% of respondents said they moved into share accommodation because they couldn't afford the rent on their own, there were other reasons for choosing to share.
Some renters were unable to secure a rental property due to tough competition.
Others chose share accommodation to save for other things, such as holidays, going out, or a house deposit.
It's not only renters who are choosing share accommodation to make ends meet. Forty percent of respondents who were landlords said they rent out rooms in their homes to help cover the rent, and 23% said it helped pay the mortgage.
Not all landlords were motivated by money; 4% said they rented out rooms for friendship.
Nearly half of the listings on Flatmates.com.au are posted by property owners, with the majority being live-in landlords and the rest owners of the property but living elsewhere.
Two out of five listers on the site have leased the property and are looking for housemates.
The typical share house renter is an Australian male aged between 25 to 34 and living in Sydney; however, shared accommodation attracts a wide variety of people.
Nearly 60% of share housers are Australian citizens, but 13% are backpackers, 8.7% are international students, and 3% are skilled migrants.
The age range varies between renters in their early twenties to those 75 years old and older, with those aged 25 to 34 being the largest group.
| Age group | Percentage |
| 18 to 24 | 19.63% |
| 25 to 34 | 37.43% |
| 35 to 44 | 15.59% |
| 45 to 54 | 11.70% |
| 55 to 64 | 10.20% |
| 65 to 74 | 4.21% |
| 75 or older | 1.24% |
Surprisingly, 15% of share housers are 55 years or older, and the main reason they live in a share house is that they can't afford to live alone.
Affording somewhere to live is an increasing problem among Australians of all ages, who are having to make significant life changes to pay the rent or mortgage.
When renters compete with larger numbers of people for one property and have fewer options due to their budget, many resort to moving back in with their family or finding a room in shared accommodation.
This scenario will continue while the number of rental properties remains low and median weekly rents keep rising.
