Key takeaways
12% of Australians have switched to shared housing in last 12 months.
One million people did so because of soaring rental costs.
There are a few ways on how you can save on rent if you can't move back with your parents.
Rental costs in Australia keep on increasing.
Because of this, shared housing is quickly becoming the answer for many to the skyrocketing cost of living, according to new research by Finder.
The survey of 1,070 respondents revealed more than 1 in 10 (12%) Australians – equivalent to 2.5 million people – have moved into shared housing in the past year.
The research also found that 5% of Aussies admit the soaring cost of rent has prompted them to return to share accommodation – that’s an estimated one million people.
A further 3% sought out shared accommodation because they could no longer afford their mortgage repayments.
The remaining 4% went back to shared living because they missed living with others.
Graham Cooke, head of consumer research at Finder, said as housing costs bite into budgets, many are taking action.
“Rents and mortgages have gone through the roof – they are the number-one source of financial stress in Australia and people can no longer cut costs elsewhere to get by", he said.
The average Australian could save $16,000 a year by swapping flat sharing for living in the family home rent-free, an analysis by Finder shows.
That’s assuming they are saving $300.50 per week on rent, which CoreLogic figures show is about half the $601 paid for the median-priced capital city rental in the December quarter.
It also assumes these funds were put in a savings account with a 5.5% p.a interest rate.
Cooke said a year spent living with family or friends could make a big difference.
“Not only will you reduce your housing costs but potentially you’ll save money by sharing utility bills and even lower grocery costs”, he explained.
Cooke urged households to park any cost savings in a high-interest savings account.
“The faster you can grow your cash buffer the more resilient you will be to economic headwinds", he noted.
Lastly, Finder’s research found that 16% of Australians already live with others.
Tips to save on your rent if you can’t move back in with your parents
- Roommates: Sharing a place with one or more people can dramatically cut your living expenses. The more people you live with, the cheaper your rent typically becomes.
- Negotiate with your landlord: If you've been a reliable tenant, your landlord might prefer to keep you at a slightly lower rent than risk having the property vacant or getting an unreliable tenant.
- Consider different neighbourhoods: Often, rents vary widely between neighbourhoods in the same city. Research areas that are up-and-coming or less popular but still safe and convenient.
- Downsize: A smaller apartment or a studio might be cheaper than a one-bedroom or larger place. Consider what space you truly need.
