How the Interest Rates and the Rental Crisis are Affecting Share Houses: Flatmates' 2023 National Share Accommodation Survey Results
Wednesday January 31 2024
Every year Flatmates.com.au surveys our awesome community to see what’s happening in the world of share accommodation in our National Share Accommodation Survey. We look at the big issues like cost of living and employment, as well as who uses Flatmates and whether you think it’s worth it (spoiler alert – it is!)
2023 has been a big one – just when we thought the tough times were over, the Cozzie Livs hit us hard. More than ever, people are turning to share houses and share accommodation because it’s just too expensive to live alone – but there is plenty of fun and advantages to sharing too.
This year we surveyed 10,320 people to find out exactly what you all think. Here are the results from our 2023 National Share Accommodation Survey.
Is Flatmates.com.au worth it?
We obviously think Flatmates is great, but don’t take our word for it.
We asked you where you listed your room or property and 38% of you only use Flatmates, with 62% of you also choosing to use other methods including word of mouth. Despite this when it came to actually finding a housemate, 65% of people found their new roomie on Flatmates.com.au. That’s what the numbers people call “over-indexing” and we love to see that success rate. Only 4.5% of you found your housemates through word of mouth (friends of friends, social media connections, etc) and Facebook Groups and Marketplace only counted for 3.8% and 3.2% respectively.
When it came to purchasing a plan 59% of people purchased a plan with the Full 30 Day plan being the most popular option, to help speed up their search and to gain the ability to message all members immediately.
Why do people use Flatmates.com.au?
Flatmates helps people looking for homes connect with people offering rooms in share houses or other types of accommodation including granny flats, studio apartments, and student accommodation.
And if you’ve tried looking for a room in a share house before, you know it can be tough. According to our survey, 64% of people on Flatmates are looking for somewhere to live, compared to 36% of respondents offering accommodation.
But some suburbs have better and worse rates than others – check out average room prices per suburb and how many people are looking in that suburb using our Value My Room tool.
Who lists properties on Flatmates?
In a sign that interest rates are starting to bite, this year was the first time that people who own and live in their homes were the largest cohort offering rooms for rent with 44% of respondents falling into this category, up from 38% last year. Those leasing a property and looking for housemates to fill additional rooms were the second highest group at 42%.
Another 6% own the home, but don’t live in it and are looking for tenants, while 4% manage the share house on behalf of the owner. Just over 2% of people are moving out of their homes and are looking for someone to take over the lease or look after it while they are away.
Unsurprisingly 67% of people had decided to share their property to help cover rent or to pay the mortgage, while 19% wanted to make additional income. Some people said their main reason for sharing their home was for friendship (we love this) while others shared in exchange for support – we’re all about a helpful community on Flatmates.
Sharehouse setups
If you’re new to the #sharehouselyf and are looking for ideas on how others live, then this section is for you. If you’re a sharer from way back and want to see how you compare to the rest of Aus, then this section is for you.
If you’re just a know-it-all and want to know how other people live, then you guessed it, this section is for you. We’re taking a deep dive into how people set up their share houses and what they want.
Why do people want to move into a share house?
Financial reasons and the rental crisis were the main reasons that people were looking for shared accommodation in 2023. 48% couldn’t afford a place on their own (compared to 45% in our 2022 survey) and 10% of people struggled with competition for rental properties, before finding a place in a share house.
14% of people shared because of the flexibility it offered – either because they were after short-term accommodation or they didn’t want to be locked into a formal lease agreement. 8% of people prefer to share because it means they are around other people, mainly for social reasons (yay besties) but also for the sense of security they get from living with other people.
For 10% of people, the primary reason for sharing was to YOLO it up by saving money for travelling, going out, splurging on the good life, or saving a bit extra for a house deposit.
4% of you turned to share housing after going through a divorce or getting out of a relationship. A less common but important reason people choose to live in a share house for the support living with others provides, e.g. reduced mobility or assistance with a disability.
What sorts of share houses are people looking for?
The types of accommodation people are looking for have not changed much since last year.
The most popular option on Flatmates is a private room (86% of respondents) and 38% were looking for a one-bedroom apartment, a granny flat or a studio – both exactly the same as last year.
18% wanted a whole 2+ bedroom house to share with others, and 13% were looking to Team Up with others from Flatmates and find a property.
12% of people were open to a shared room, which is a popular option for travellers or international students who want to save more of their cash from rent to live their best life here in Aus.
If you’re thinking, “Hang on Flatmates, that adds up to 167%, what gives?” then you’re spot on. Many people aren’t just searching for one option, with lots of users exploring multiple ways to live.
What agreements and contracts do people have with their housemates?
At Flatmates, we always recommend that you have a written agreement with your housemates, and luckily, 30% of you do – but that is 2% less than last year. For the 25% of people with a verbal agreement or the 5% with no agreement, it might be time to take a look at our free Flatmate Agreement template and get something on paper - everyone needs to be safe in their shared home and on the same page about expectations. If your flatmate doesn’t want a written agreement, even an informal one, that’s a red flag.
Another 21% are popping your housemates on your lease and 8% of you are setting up an official subletting agreement. Remember, if you’re leasing a property always follow your formal lease agreement about registering additional tenants.
What do people check in potential housemates?
Here are the top things you check to help determine if someone will be a good housemate:
- Having a face-to-face conversation
- Employment
- General financial situation
- ID check
- Personal references
- Official background check
- You just follow your gut
Money and Finances
The cozzie livs hit hard this year, with everything from rent to groceries skyrocketing. But it’s not just you, find out how many of your fellow flatmates are feeling the pinch.
Rising rents in share houses
With rental vacancies hitting historic lows this year across Australia, the national growth in median advertised rents hit 15% in the year to October 2023 according to Proptrack data. Homeowners were hit with increased costs too thanks to interest rate rises and general cost of living impacts.
54% of respondents said that their rent had increased in the past year, which compares with only 46% last year. For those of you who had a rent increase, 42% of you had larger rent increases than you expected. Expected or not, these increases have left 63% of you in share houses where at least one of you is struggling to pay rent.
Dealing with the rising cost of living in share houses
If you’re looking for ways to deal with the increased cost of living, here are some of the ways our community is saving money with their flatmates so they can live more.
22% of you cook meals together, which is not only some cute family dinner vibes but also with the mental load that comes with deciding what to cook for dinner every day (seriously, why did no one prepare us for this side of adult life) and 5% of you have caught the love bug and had a partner move in.
On a less cute note, 23% of households introduced rules for when you can use appliances like heaters and air conditioners, and another 10% have chosen to work or study away from home to reduce energy consumption. 12% of you were able to find an additional flatmate to help spread costs.
Difficulties finding homes during the rental crisis
There’s only so much rejection you can take while house hunting before you start to wonder “Is it me?!”
But don’t worry, we’ve got the data to convince you that our housing market has the problem, not you.
Before Covid, 80% of you were able to find a home within a month of searching, but in the last six months, that figure has dropped to 46%.
Share house relationships
While you might be looking for an aesthetic house, it’s the people that you live with who can really make or break your share house experience. We give you the 411 on flatmate relationships below and like, spill! Did you hook up with your flatmate?
Do people prefer living with friends or strangers?
Given the choice, most people would prefer to live with strangers (45%) compared with friends (39%) or friends of friends (16%). Weighing up which would be right for you? Read more about whether you should live with friends or strangers.
19% of you live in a share house where at least two members are related, and 32% of you live with at least one couple.
What’s the best part about living in a share house?
With most of you choosing to live in a share house for financial reasons, it’s hardly surprising that you’ve said the best part of share accommodation is that it’s cheaper with cheap rent and lower cost of living being the best thing about share accommodation for 52% of you. Another 24% of you said the best thing about share house living was lifestyle upgrades these savings allow you – either living in a suburb you wouldn’t otherwise be able to afford or just being able to spend your money on other things apart from the bare necessities.
But what really gives us the warm fuzzies is that 20% of you say the number one best thing in the world about living in a share house is the company and friendships that come from it.
What’s the worst part about living in a share house
Living in share houses can be tiresome if you have a flatmate who annoys the shit out of you, but you don’t feel comfortable enough to let them know. Sweetie, it’s 2024 and time to work on that, open communication with your flatmates is key. From the best to the worst. Here are your number one pet peeves (maybe make a mental note not to do these to your roomies)
- Messy housemates
- Lack of privacy
- Lack of housing stability (because landlords hold the power)
- No one taking responsibility for breaking things
- Housemates not paying bills/rent on time
- Waiting for the bathroom
- Other housemates always have friends over
- Housemates having loud sex
- Housemates stealing food
Romantic relationships in share houses
The general consensus is that it’s not a great idea to sleep with your housemate but our National Share Accommodation Survey found some interesting insights.
Only 12% of you have ever hooked up with your flatmate (that’s up from 11% last year), and only 7% of you have dated your housemate – but for those that did take the plunge, 60% of you said it was worth it (although that leaves another 40% who thought it was a mistake, snap!)
So, if you’re thinking of getting it on with your housemate, make sure you’re sure and that it is, of course, consensual.
Pets
We can’t forget about one of the most important relationships in our lives, our furry friends.
37% of you have a pet in your share house.
In the last few years many states now have laws in place that rental providers cannot ‘reasonably refuse’ pets, however others, including New South Wales, still allow landlords to provide a blanket no-pet rule without a reason.
Sharehouse Demographics in Australia
Out of the 10,320 people surveyed who used Flatmates.com.au in the last 12 months, here are the demographics for those who chose to answer.
Age
| Age | Percentage |
|---|---|
| 18 to 24 | 20% |
| 25 to 34 | 38% |
| 35 to 44 | 15% |
| 45 to 54 | 12% |
| 55 to 64 | 10% |
| 65 to 74 | 4% |
| 75 or older | 1% |
State
| State | Percentage |
|---|---|
| ACT | 3% |
| NSW | 30% |
| NT | 1% |
| QLD | 28% |
| SA | 6% |
| TAS | 2% |
| VIC | 21% |
| WA | 9% |
| Outside of Aus | 1% |
Gender
| Gender Diverse | Percentage |
|---|---|
| Male | 37.5% |
| Female | 58% |
| Non Binary | 1% |
| Gender Diverse | 1% |
| I’d prefer not to say | 2% |
| Not listed | 0.5% |
Income
| Income | Percentage |
|---|---|
| $1 - $9999 | 10% |
| $10,000 - $24,999 | 12% |
| $25,000 - $49,999 | 17% |
| $50,000 - 74,999 | 21% |
| $75 000 to $99,999 | 15% |
| $100,000 - $149,999 | 9% |
| Greater than $150,000 | 2% |
| I prefer not to say | 12% |
Employment
| Work status | Percentage |
|---|---|
| Working full time | 50% |
| Working part time | 19% |
| Casual work | 25% |
| Side Hustles | 7% |
| Government payments | 4% |
| Family/parents | 5% |
| Shares | 2% |
| Rent from property investments | 4% |
| Other | 5% |
Employment industries
| Industry | Percentage |
|---|---|
| Construction | 6% |
| I work for myself | 4% |
| Administration | 4% |
| Manufacturing | 3% |
| Marketing | 3% |
| Hospitality | 14% |
| Healthcare | 14% |
| Personal Services | 2% |
| Real estate | 1% |
| Other | 16% |
How many people in share accommodation are students
| Student | 69% |
| Non- student | 31% |
Level of education
| HighSchool Certificate | 10% |
|---|---|
| Bachelor Degree | 37.4% |
| Diploma | 13% |
| Apprenticeship | 2% |
| Certificate 3 or 4 | 2% |
| Masters | 22.85% |
| Other | 4.85% |
Residency Status
| Residency Status | Percentage |
|---|---|
| Australian Citizen | 62.6% |
| Permanent Resident | 6.76% |
| International Student | 13.6% |
| Backpacker/holiday maker | 5% |
| Skilled Migrant | 3.27% |
| Other visa holder | 4.91% |
| New Zealander | 2.85% |
