Rent Surge Drives Household Change
Australia’s rental crisis is driving more people to share housing or live with relatives as rents surge at the fastest pace in over a decade. Commonwealth Bank Australia’s (CBA) latest report highlights that rents are rising rapidly due to high demand and limited supply, forcing many to adapt by “economising” through shared living arrangements.
Currently, about 5% of Australians over 15 live in shared houses, a 1% increase from 2020 to 2021, equating to roughly 200,000 additional people. Economist Stephen Wu notes that more individuals are also living with extended family, such as siblings and grandparents, as household formations shift to combat rising costs.
The annual rent growth rate has hit 9%, the fastest since 2008, driven by near-record low vacancy rates in capital cities. While rent increases have slowed slightly in Sydney and Melbourne, Wu predicts only a gradual moderation in rent inflation.
