Renting a room in share accommodation has spiked in popularity thanks to rising housing costs and a shortage of available rental properties, according to REA Group.
Homeowners are also increasingly renting out spare rooms to help pay their bills. This has led to a 34% rise in the number of rooms posted on share accommodation site flatmates.com.au in May, compared to the same time last year, across the combined capital cities.
“Renting a room in share accommodation has surged in popularity due to the shortage of available rental properties,” said Karen Dellow (pictured above), senior data analyst at REA Group.
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Sydney has experienced a 45% increase in room listings during the same period, likely because it is the most expensive city for buying and renting in Australia and share accommodation has become a cheaper option for Sydneysiders.
“Share accommodation has become a cheaper option for Sydneysiders,” Dellow said.
The suburbs with the highest number of listings are also the ones where demand is highest.
Bondi Beach currently has 174 rooms available and 944 people looking, making it a competitive area for finding shared accommodation. Similarly, Melbourne’s CBD has the most rooms for rent and the largest number of people searching.
In some suburbs, the number of available rooms outstrips the demand, while in others, the number of seekers exceeds the available rooms.
For instance, in City Beach, Perth, there are no rooms listed despite 102 people looking. The same issue is seen in Sydney CBD, the Rocks, and Mount Gravatt in Brisbane.
There is some good news for renters in less central suburbs.
In St Albans, Melbourne’s North-East, there are 23 rooms for rent but only two people looking.
In Banksia Beach, Brisbane, one person is looking with seven rooms available. These areas offer more choice and cheaper rents for those wanting to avoid the city's hustle and bustle.
Some suburbs, like Wandi in Perth and Cobbitty and Melonba in Sydney, have no active seekers. These areas may not be central but offer more affordable options for those willing to look slightly further afield.
“Those willing to look in neighbouring suburbs or slightly further afield can find more choice at cheaper prices than in the inner city,” Dellow said.
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