In the midst of a cost-of-living crisis, Australians are finding creative ways to save money on housing. New figures presented by Elizabeth Redman, a national property editor at The Age, suggest that more people are moving towards shared living arrangements as a cost-saving measure. While this strategy has provided financial relief to many, helping them save an average of $366 a week, experts warn that increased demand will also bring about new challenges and pressures in the market.

Recent data from CoreLogic reveals that rent for larger homes is on the rise, while rent for smaller one-bedroom units is declining. Statistics show that rents for larger houses have increased by 8.4% over the year, marking a significant acceleration compared to smaller homes and units.

Eliza Owen, the head of Australian research at CoreLogic, suggests that the pick-up in growth for larger homes could be attributed to the diminishing affordability of smaller homes. One major contributing factor is migration from overseas, with international students increasing the competition for smaller units.

As a result, many residents are now considering shared accommodations. Although larger rental properties are more expensive overall, they are cheaper on a per-bedroom basis. Combined with rising costs in energy, fuel, and groceries, some tenants feel they have no other option but to share, targeting larger properties to scale costs effectively.

Sabrina Clarke, a project officer at the Better Renting campaign, mentions that while shared housing can foster a sense of community, some housemates face challenges due to the lack of control over who they live with. This is especially true for those who lack the time and resources to explore a wider range of options, often settling in places they can afford rather than those that are ideal.

Moreover, families are now facing rising competition from multi-income households. Typical families relying on single or dual incomes are competing against groups with possibly four full-time income earners interested in shared housing. This competitive market puts struggling families at a disadvantage, often leaving them uncertain about securing a suitable home or settling for less-than-ideal living situations.

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