- Sharing a house has been floated as one way of reducing costs
- It is also growing as a social and cultural preference, above just cost savings
- While you can save on rent, the market remains extremely tight
It is no surprise that more and more Australians are looking for ways to save, as the cost of living continues to rise and financial stress hits many.
The rental sector seems to have kicked several goals in recent weeks, with 150,000 rentals and $16 billion in rental developments potentially in the pipeline, in particular, build-to-rent.
That will be of little solace to those currently in the market for a rental, with vacancy rates continuing to sit at record lows and demand rising as more households were created across the pandemic lockdowns, and more recently, the return of international students. Also of little solace: the latest inflation data from the Australian Bureau of Statistics (ABS) shows rental inflation surged to 4.9%.
Shared housing is more than just for the savvy
A report by Rent.com.au has found that, for those willing to buddy up with friends or family, sharing a house may help reduce the burden on your wallet.
The report identified suburbs where renters could potentially halve their renting costs by choosing to share a house, instead of renting an entire apartment. Part of the saving equation included splitting the cost of utilities too.
“We’ve seen house sharing go through several cycles over the last couple of years. It saw a substantial drop during COVID as people began working from home and prioritised having their own space,” said Rent.com.au’s Greg Bader.
“But in 2023, we’ve seen a real lift in the number of people sharing houses, driven largely by record low property availability and the resulting rental increases that come with low vacancy rates.
Bader noted that while sharing is a ‘practical option’ often favoured by younger individuals and those just entering the workforce with limited budgets, change is abounding.
“… we’re now seeing a real broadening in the market, with people from all age groups embracing house-sharing. While cost is still a major driver, the trend also caters to those seeking to maintain their preferred lifestyle, including living in an area they love.
“The savings on rent and utilities are self-evident, but there are other soft advantages too. If you’re new to an area, living with housemates can be a great way to expand your social circle and discover hidden gems in your community.”
Top 20 suburbs in Australia for sharing a house
| Ranking | State | Suburb | Postcode | 1 Bed Unit Median pw | 2 Bed Unit Median pw | 3 Bed House Median pw | 4 Bed House Median pw | Shared House Savings per Bedroom Estimate |
|---|---|---|---|---|---|---|---|---|
| 1 | VIC | Laverton | 3028 | $295 | $360 | $340 | $400 | -55% |
| 2 | NSW | Lidcombe | 2141 | $500 | $590 | $570 | $670 | -55% |
| 3 | QLD | Annandale | 4814 | $340 | $525 | $430 | $515 | -55% |
| 4 | WA | Carey Park | 6230 | $290 | $380 | $400 | $350 | -54% |
| 5 | WA | Rivervale | 6103 | $420 | $475 | $480 | $580 | -54% |
| 6 | WA | Cloverdale | 6105 | $400 | $435 | $450 | $550 | -53% |
| 7 | VIC | Hampton Park | 3976 | $330 | $380 | $400 | $450 | -53% |
| 8 | VIC | Caroline Springs | 3023 | $350 | $410 | $420 | $490 | -53% |
| 9 | NSW | Parramatta | 2150 | $470 | $540 | $550 | $675 | -52% |
| 10 | VIC | Broadmeadows | 3047 | $280 | $360 | $360 | $400 | -52% |
| 11 | QLD | Boyne Island | 4680 | $300 | $400 | $390 | $440 | -52% |
| 12 | VIC | Glen Waverley | 3150 | $430 | $480 | $500 | $620 | -52% |
| 13 | WA | Rockingham | 6168 | $360 | $380 | $420 | $500 | -52% |
| 14 | NSW | Granville | 2142 | $440 | $460 | $530 | $600 | -51% |
| 15 | VIC | Lalor | 3075 | $325 | $365 | $390 | $470 | -51% |
| 16 | VIC | Braybrook | 3019 | $320 | $390 | $380 | $500 | -51% |
| 17 | VIC | Williams Landing | 3027 | $350 | $390 | $440 | $480 | -51% |
| 18 | WA | Nollamara | 6061 | $350 | $420 | $450 | $500 | -51% |
| 19 | VIC | Sydenham | 3037 | $320 | $360 | $400 | $450 | -51% |
| 20 | VIC | Sunshine West | 3020 | $310 | $350 | $380 | $450 | -51% |
Source: Rent.com.au
Laverton
Ranked number one for estimated savings by Rent.com.au, the suburb is located circa 20 kilometres southwest of Melbourne’s CBD and accessible via the Werribee line.
While it may be one of the best options for house sharing, it may be tough to come by a rental, with the vacancy rate for 3028 currently sitting at 1%, according to SQM.
Stock on market for rent for 3028, incl. Laverton
Lidcombe
Located up the river close to Sydney Olympic Park, the suburb of Lidcombe is some half an hour out of the Sydney CBD or 20 kilometres.
The suburb has excellent amenity and is close to many major destinations including DFO Homebush, Strathfield Plaza, and the Rosehill Gardens Racecourse.
Stock on market for rent for 2141, incl. Lidcombe
Rivervale
The suburb enjoys excellent access to Perth Airport and employment centres surrounding the airport. It is also close to major shopping centres such as Belmont Forum and is a stone’s throw from entertainment precincts such as Optus Stadium, Crown, and shopping strips along Albany Highway in Victoria Park.
Finding a rental in this locale will be tight though, the SQM data shows the vacancy rate is currently 0.6%, with the latest data showing a hair over 40 rentals available on the market.
Stock on market for rent for 6103, incl. Rivervale
