Tenant’s shock after his rent was hiked by $730-a-week – and he’s not even living in a fancy suburb: How Aussies could be forced to opt for sharehouses as rents soar
- Aussies could be driven back to sharehouses as rent soars
- Rental prices across the nation increase at record rates
- Less Aussies occupy sharehouses, driving up demand
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Wild increases in rental prices across Australia could pressure young Aussies to move back home with mum and dad or into sharehouses as they look for cheaper alternatives.
The sharp hikes include suburbs up to 20 minutes from the CBD, with tenants such as Daniel Olaniran left shocked after his rent at Ryde in Sydney’s north-west jumped by an extraordinary $730 per week.
Mr Olaniran posted a video to his TikTok channel, OlanTekkers, showing an email from his landlord informing him of the steep increase in rent.
Recent statistics show that rental prices in Mr Olaniran’s Ryde neighbourhood have increased by a staggering 35.6 per cent over the past year.
The increases are similar across the nation, with some economists suggesting that a move away from sharehouses by renters during the Covid period has driven up overall demand for housing.
In the TikTok, Mr Olaniran is shocked that rent in a suburb such as Ryde is starting to match the city’s more luxurious suburbs.
‘These are Bondi prices, you know, these are Darlinghurst prices I’m seeing per week,’ he said.
‘I might just have to move to Perth or something ’cause this is a joke.’
According to statistics from the Reserve Bank of Australia, the decrease in the number of Australians living in sharehouses is one of the influences driving dramatic rises in rental prices.
The trend started during the Covid pandemic, with numerous Aussies deciding to leave larger sharehouses and move into smaller spaces with their parents or partners.
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In the same period, the construction industry was beset by supply chain problems and was unable to provide new dwellings to match demand.
Rental prices across Australia have risen at record rates, leaving tenants such as Daniel Olaniran (pictured) shocked at finding their rent increased to unsustainable levels
Australians turned away from sharehouses during the pandemic, however higher rental prices across the nation could force them back in order to find a cheaper alternative (pictured, stock)
Economists have suggested that these influences have helped drive up the price of rental properties to the point where Australians will again choose to move into sharehouses.
‘I think we are going to see more and more sharehouses, or group households forming,’ Time Lawless, CoreLogic’s head of research, told the ABC.
‘Simply due to the fact that rental markets are as tight as what they are.’
However, ABC business reporter Emilia Terzon, reported that prices for share houses are no longer the bargain they were since before pandemic.
‘Sometimes you can find some rare gems,’ she said.
‘But places like Bondi, some people are paying $500 per week on a room.’
Demand has also driven by both interstate and international students looking for rental properties in major cities as they return to face-to-face studies.
However, student aren’t the only demographic in demand for housing as according to Claudia Conley from flatmates.com.au, an increasing number of people over the age of 55 are also looking to share.
