Extended families and friends are teaming up to improve their chances of securing a rental property as tight supply forces prices higher, with experts warning the cohort is being left behind.
asserted
cohort → team → prices
For Perth renter Grady Toomath, sharing a home with his brother and another housemate has become a necessity rather than a lifestyle choice.
"I've been living here since 2019.
asserted
I → share → 2019
When we moved in, the rent was $315 a week; [after] our latest rent increase it's $760 a week," he said.
asserted
he → move → increase
That is a 141 per cent increase over seven years that comes as the rental market continues to tighten.
asserted
market → come → years
Brisbane real estate agent Avi Khan said multigenerational families and friendship groups accounted for one in five rental applications to his agency.
asserted
families → say → agency
"The only choice that they have is they come together as a family unit or rent a property with their housemate, their flatmate, their friends, whoever it is.
asserted
it → have → housemate
It's the massive shift that we're seeing," he said.
asserted
he → see → that
"We're seeing multiple couples applying for properties.
asserted
We → see → properties
People are applying with their mums and dads.
asserted
People → apply → mums
So we're seeing the changing of the household unit."
asserted
we → see → unit
Grady Toomath's living arrangement has stretched his budget a little further, but it has come with sacrifices.
asserted
it → stretch → sacrifices
"Three guys in a pretty small space, we've had to really adjust," he said.
asserted
he → have → space
It's not entirely the lifestyle any of us wanted, but it's the lifestyle we can afford.
asserted
we → want → us
So we help each other; we do what we can.
asserted
we → help → other
We work together in this small space and try to just mind each other and be respectful in the way we can, but it's not what any of us really envisioned for our lives."
asserted
any → work → lives
Mr Khan said the increase in group applications coincided with negative gearing and capital gains tax changes in May's federal budget, which had eaten away at supply.
uncertain
which → say → supply
"Normally for a house, before the budget, we'll get 10 applications.
asserted
we → get → applications
We're [now] looking at 15, 20 applications for those homes,"he said.
asserted
We → look → homes,"he
"They [the government] haven't considered the effect these changes will have downstream.
asserted
changes → consider → effect
"That's why we're seeing real warning signs in the economy at the moment because where do these tenants go?
asserted
tenants → see → moment
They've got no other choices."
asserted
They → get → choices
Renters squeezed amid home ownership focus
Federal and state governments offer several incentives to assist buyers to purchase their first home, including the Albanese government's expanded 5 per cent deposit scheme.
asserted
buyers → squeeze → scheme
But Lyndall Bryant, a senior lecturer in property economics at Queensland University of Technology, said renters have been overlooked.
asserted
renters → say → Technology
According to Domain, the national rental vacancy rate was at 1 per cent in the September quarter, with just one in 100 properties available to lease.
uncertain
rate → accord → properties
Capitals outside of Sydney and Melbourne experienced more severe supply shortages.
asserted
Capitals → experience → shortages
Agents and property economists said that has pushed the 31 per cent of Australians who rent to be more creative.
asserted
who → say → Australians
"We've been seeing a lot of conversation about how to make housing more affordable for people who have a mortgage or are trying to buy," Dr Bryant said.
asserted
Bryant → see → mortgage
"But what we're not seeing is any solutions for the renters and unfortunately for them, the situation is only getting worse."
asserted
situation → see → them
"We've seen billions of dollars put into social housing and community housing, but social and community housing is only between 3 and 5 per cent of our total housing stock.
asserted
housing → see → stock
In rough numbers, 25 per cent of all of our people who need housing are renters that rent into the private market.
asserted
that → need → market
The federal government increased Commonwealth Rental Assistance payments in 2023 and 2024 and has agreed, along with state and territory first ministers, to move toward more nationally consistent rental rights.
asserted
government → increase → rights
Unions and housing advocacy groups have also called for rental caps and multi-year lease agreements.
asserted
Unions → call → caps
But Dr Bryant said the federal budget's tax changes have discouraged investment in housing, disadvantaging renters.
asserted
changes → say → renters
"Our current policy arrangement is that it's dis-incentivising investors from being in residential property and we don't have enough landlords, and they're exiting the market," she said.
asserted
she → di → market
"[It's] freeing up housing for first home buyers, which is really wonderful for first home buyers, but we still have this really large portion of the market that are renters and their prices are only going up.
asserted
prices → free → market
"
Landlords also feeling squeezed
asserted
Landlords → feel → ?
Sydney accountant Keegan Du Preez has nine investment properties across the country but also rents.
asserted
Preez → have → country
The 24-year-old said he appreciated the challenges of the market from both the landlord and tenant perspective.
asserted
he → say → perspective
"I try and look after the tenant.
asserted
I → try → tenant
It's in my best interest, plus it's in the tenant's best interest as well to lock in that rate because the market's only going to go up with rents," he said.
asserted
he → lock → rents
…and 7 more, not listed.
The Aporia
