Rising rents push Australians to share homes and form larger rental households

In Australia’s tight rental market, renters are increasingly forming larger, multigenerational or friend-based households to meet soaring rents, as illustrated by Grady Toomath’s three-person arrangement in Perth. Real-estate professionals note that such shared applications now represent roughly 20 % of all inquiries, with couples, parents and siblings applying together. Analysts attribute the trend to federal budget changes that altered negative-gearing and capital-gains tax rules, discouraging investment and shrinking available stock.

The national vacancy rate sits at about one percent, with even lower availability outside Sydney and Melbourne, leaving renters with few options. Policy focus has largely centered on first-home buyer incentives, while senior lecturer Lyndall Bryant warns that renters receive little targeted support and that social housing comprises only a small share of the overall market. Landlords, like Keegan Du Preez, acknowledge rising costs and the need for longer leases to provide tenant stability.