In response to the escalating cost of living, shared housing has emerged as a vital solution for many Australians, according to a survey by a comparison website.
A Finder survey found that approximately 12% of the population, or 2.5 million people, have moved into shared housing over the past year to mitigate financial pressures.
The Finder survey found that soaring rental costs are the primary driver for this shift, with an estimated 1 million Australians returning to shared living arrangements specifically due to affordability issues.
“Rents and mortgages have gone through the roof – they are the number-one source of financial stress in Australia and people can no longer cut costs elsewhere to get by,” said Graham Cooke (pictured above), head of consumer research at Finder.
The survey also revealed that by opting for shared housing, people could save significantly. Finder’s analysis suggested that living in a family home rent-free could save an average Australian $16,000 annually, assuming a rent saving of $300.50 per week.
“Reducing or eliminating accommodation costs – if you are in a position to do so – will significantly improve your cash flow and you will accrue savings much quicker," Cooke said.
For those unable to move back with family, other strategies can help save on rent:
Cooke emphasised the importance of redirecting any savings towards building a financial buffer.
“The faster you can grow your cash buffer, the more resilient you will be to economic headwinds,” he said.
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