Yahoo Finance Unlikely rental crisis solution fixes major problem for young Aussies and Boomers
With rents soaring across the country, the Home Share initiative could kill two birds with one stone.
An unlikely solution has emerged that could ease the rental crisis for young Aussies and eliminate a problem that's been plaguing the older population. Rents have been soaring in capital cities across Australia and it's pushing Gen Z and millennials to the brink as they siphon off more of their stagnant salaries to keep roofs over their heads.
At the same time, Baby Boomers and the Silent Generation have been called on to downsize to free up their homes for younger families. But former real estate agent Jack told Yahoo Finance that can cause older Aussies to buy up smaller homes and price out first-home buyers.
"There's sort of been this idea that if the Boomers got out of their houses, it would be a lot easier for all of us, which, in reality, is not actually the case," he said.
That's where HomeShare comes in.
RELATED
Big issue with Australia's game-changing new digital ID: 'Impossible'
Overcharged Aussies fight back as 'common problem' quadruples bills: '$365 to $1,500'
The initiative is pairing young Aussies needing somewhere to live with an older person with a spare room available.
Not only does it provide accommodation to someone who might be struggling to get into the rental market, but it also gives companionship to someone who could be living alone.
Sabrina is a 27-year-old student who has moved in with 99-year-old Marjorie and they have become great friends.
"It's nice to have a friend in the house and somebody that you feel comfortable with and we share a lot of things, and we've got quite a lot of interests... even with our age group," Marjorie explained to A Current Affair.
Do you have a story? Email stew.perrie@yahooinc.com
"Marjorie hates wasting things, so I've learned a lot about saving things and making use of them... yes advice on men," Sabrina added.
"Marjorie has some advice on places I should go, and she's advised me to put myself out there more and be a little more flirtatious. She wants me to find a husband."
The student said it was "very difficult" to find a suitable and affordable rental by herself and she was "overwhelmed" by how tight the market was. Marjorie revealed she did a stint in a nursing home but said it wasn't for her and she'd prefer to live in her own accommodation.
How does HomeShare work?
Sabrina said the HomeShare initiative had a lot of steps to ensure two people would be a good match, such as police checks, referee checks and several interviews.
HANZA, HomeShare Australia and New Zealand Alliance, is the dual-national body representing the initiative in our neck of the woods and it has been helping people find accommodation for more than two decades.
You can sign up for the program here.
It might not be the most likely living scenario, but it could kill two birds with one stone.
How Aussies are coping with rents rising at record rates
New figures have revealed more people are choosing to live in shared houses or with relatives as rents continue to soar.
Commonwealth Bank Australia’s (CBA) latest economic insights report reveals rents are growing at their fastest pace in more than a decade as demand for housing outstrips supply.
Household behaviours have begun to adapt as a result - many “economising” and choosing shared houses over single or partnered living.
The current share of people living in shared houses sits at about five per cent of the Australian population over age 15, according to the report.
It marks a one per cent jump over the 2020-2021 period, or about 200,000 people.
Economist Stephen Wu said there had also been an increase in those living with other related individuals, such as siblings, cousins and grandparents.
“With the ongoing slowing in population growth, shifts in household formation are increasing average household size and beginning to moderate the demand for housing while supply growth remains constricted,” Wu said.
“Advertised rents add to the weight of evidence that rents inflation can slow (albeit gradually) from here.”
The marked change in household formations is in addition to rents growing at an annualised pace of nine per cent - the fastest since 2008.
- with NCA Newswire
Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.
