As a result, rental payments have become increasingly burdensome, with the average household now spending 33.4% of its income on rent, marking a historical peak in Q3 2025. This financial strain has compelled a growing number of Australians to opt for share-housing as a way to mitigate costs.
Recent research from REA Group highlights a substantial rise in the popularity of shared living arrangements. The platform flatmates.com.au has seen its active monthly members swell by approximately 60% from January 2021 to November 2025. Notably, cost-of-living pressures drove 55% of these individuals to seek shared housing, while 57.7% of those renting out spare rooms cited financial stress as a primary motivator.
The data further reveals a demographic shift towards older Australians embracing shared accommodations, with those aged 55-64 now constituting 14.5% of share house occupants, a significant jump from 9% a year prior. In a climate where property ownership seems elusive, 70% of respondents express scepticism about young Australians achieving this traditionally prized goal.
Looking ahead, the housing affordability crisis in Australia shows no signs of abating. SQM Research forecasts indicate that property prices in the capital cities could increase by 6% to 10% in 2026, a rate that far outpaces expected income growth.
Compounding the affordability issue is the low rental vacancy rate, currently at a historic low of 1.5%, following a 17% drop in rental listings over the past year in capital cities. This scarcity has resulted in renewed upward pressure on rental prices, perpetuating the cycle of housing strain for many Australians.
The implications are clear: as rental markets tighten further, share-housing will likely continue to be a preferred solution for many, particularly as Australians navigate a landscape of escalating living costs and diminishing housing affordability.
Published: Tuesday 9th December, 2025
Last updated: Tuesday 9th December, 2025
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
