Share House

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GUEST OBSERVATION
The proportion of households experiencing <a href="https://theconversation.com/two-pictures-of-rental-housing-stress-and-vulnerability-zero-in-on-areas-of-need-77714" target="_blank">rental stress</a> is on the rise across Australia’s major cities. High rental prices have been driving an increase in shared housing. The most extreme form of this is “shared room” housing – where residents share a bedroom or partitioned living space (such as lounge room or garage) with a number of unrelated adults.
Official statistics, such as those collected by the Australian Bureau of Statistics, fail to accurately record room sharing. Public knowledge is limited to anecdotal stories or periodic media coverage of tragic outcomes of living in shared room housing – such as a 2012 apartment <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-06-16/landlord-questioned-over-bankstown-fire-unit-at-inquest/6549656" target="_blank">fire that led to the death of an international student</a> in Bankstown, Sydney.
However, the growth of online advertising platforms can provide new insights into shared housing across our cities. For <a href="https://doi.org/10.1080/08111146.2018.1556632" target="_blank">our recently published research</a>, we analysed 1,018 room-sharing listings for Sydney on gumtree.com.au between February and April 2017. While focusing on Sydney, the insights we present here are relevant to all Australian cities.
Who lives in shared rooms and where?
Sharing a room is typically short-term accommodation which allows residents to secure low-cost housing in well-located parts of the city, close to services and employment or education (typically universities). It’s an option most likely to appeal to young and mobile populations. Evidence suggests that international students, holidaymakers (those staying longer than typically housed via services such as Airbnb) and young professionals are most likely to live in shared rooms.
Thus, it’s no surprise that suburbs surrounding the Sydney CBD had the most shared room accommodation. The suburbs of Sydney, Pyrmont, Ultimo, Haymarket and Chippendale (Sydney City local government area – 409 rooms advertised), Bondi Beach and Bondi Junction (Waverley LGA – 80 rooms advertised) recorded the highest numbers. Beyond the CBD, Parramatta, Auburn, Strathfield, Chatswood, Lakemba and Rockdale had relatively high numbers of listings. Parramatta LGA recorded the third-highest number (76).
<a href="https://images.theconversation.com/files/247856/original/file-20181129-170238-1p15j7y.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/247856/original/file-20181129-170238-1p15j7y.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
 (Author provided)
These suburbs are well connected by public transport to employment and education opportunities. A number of these locations are immigrant gateways with diverse cultural and ethnic profiles. This suggests shared rooms are an important form of housing for recently arrived migrants.
How many people share a room?
The suburbs with the highest numbers of advertised shared rooms also had more people per shared room. For example, Sydney, Pyrmont, Ultimo, Haymarket, Chippendale, Surry Hills and Darlinghurst (all in Sydney City LGA) had average occupancy rates of more than 2.5 occupants per room. It was not uncommon for two-bedroom apartments to have between 5 and 14 occupants.
<a href="https://images.theconversation.com/files/247858/original/file-20181129-170250-620rlf.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/247858/original/file-20181129-170250-620rlf.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
 (Author provided)
In terms of overcrowding (using <a href="https://theconversation.com/overcrowded-housing-looms-as-a-challenge-for-our-cities-96110" target="_blank">the “no more than two persons per room” standard</a>), more than a quarter (27%) of residents living in shared rooms included in this study were in overcrowded dwellings. Inner-city suburbs recorded the highest rate, with 40% of residents in overcrowded dwellings. In middle and outer suburbs, 14% and less than 1% of residents lived in overcrowded dwellings respectively.
It’s more affordable, and profitable too
People’s willingness to live in shared room housing is due mainly to it being cheaper. Our study revealed that shared rooms are rented for much less than the rate paid in the wider private rental market.
For example, in Haymarket, where the average occupancy is three people per room, the weekly rent per resident sharing with two others was $150. This was well below the median weekly rent for a private room in a two-bedroom apartment ($455) or a private one-bedroom apartment/studio ($643).
Adding to the relative affordability of shared room housing, rent typically includes furniture and utility bills. Bond payments are also lower.
Access to this form of housing is easier, too, because formal requirements such as identity and rental history checks are removed. This means residents are typically not covered by formal leasing arrangements and the legal protections that go with them.
The other side of the shared room equation is that it’s an extremely profitable form of housing for landlords – or tenants subletting dwellings. The rent generated per dwelling in shared room housing is well above the rental income if the property was leased to the private market.
For example, in Chatswood the median weekly rent for a two-bedroom apartment with shared bedrooms was $1,020. For a two-bedroom private (non-shared) apartment the median weekly rent was $785. The $235-per-week difference represents a 30% profit margin for landlords/tenants who convert properties into shared room accommodation. This financial premium is observed across most higher-demand shared-room suburbs in Sydney.
<a href="https://images.theconversation.com/files/247864/original/file-20181129-170235-yad3kd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/247864/original/file-20181129-170235-yad3kd.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
 (Author provided)
Policy and regulatory reforms are needed
Shared rooms raise a series of policy and regulatory concerns.
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Rooms are usually sublet accommodation without written tenancy agreements. This leaves occupants in a precarious form of housing. They are often uncertain of their tenancy rights and reluctant to make claims for fear of being evicted
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shared room rentals typically occur “off the books”, paid for in cash without written receipts. Thus, rental income for landlords and subletting tenants does not appear as income for taxation purposes
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the allure of higher rental income per property increases chances of overcrowding as more tenants are squeezed into bedrooms and partitioned living spaces
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the higher rental returns are also likely to remove housing stock from the market for other household types, as dwellings previously available for long-term tenancies are converted to shared room accommodation
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unlike <a href="https://www.gov.uk/house-in-multiple-occupation-licence" target="_blank">share houses in the UK</a> and our <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/boarding-houses" target="_blank">boarding</a>/<a href="https://www.consumer.vic.gov.au/licensing-and-registration/rooming-house-operators">rooming</a> houses, private landlords are unable to obtain permits from city authorities to convert properties into shared accommodation. This limits the transparency of “responsible” landlords
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overcrowded properties can lead to structural risks when illegal bedrooms are added and to infrastructure pressures such as low water and gas supply
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noise and safety-related conflicts are increasingly reported in dwellings (mainly apartments) inhabited by both family (non-shared) and shared households
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monitoring mechanisms are ineffective. Current inspection laws require that the landlord is notified prior to inspection. This favours landlords/head-tenants who are able to alter the number of tenants before an inspection.
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With affordable rental housing in short supply in Australia’s major cities, shared room accommodation is likely to increase. This has profound implications for residents of these rooms, local housing markets and government agencies.
Authors: Zahra Nasreen, a PhD Scholar in Planning and Geography, Macquarie University and Kristian Ruming, an Associate Professor in Urban Geography, Macquarie University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/tracking-the-rise-of-room-sharing-and-overcrowding-and-what-it-means-for-housing-in-australia-107265" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Tracking the rise of room sharing and overcrowding, and what it means for housing in Australia

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GUEST OBSERVATION
An increasing number of older Australians are living in share housing. A relatively new group to emerge on the share-housing scene, they are choosing to share for financial reasons, but finding unexpected social benefits.
Share housing has traditionally been associated with student housing and media depictions of the share house as dysfunctional, chaotic, “He Died with a Falafel in His Hand” scenarios. But a growing number of older people are sharing housing.
This trend is part of the growth in share housing across an increasingly broad demographic as professionals aged in their 30s, 40s and onwards continue to share house or return to share housing into later life. Generation Rent is fast becoming “Generation Share”.
The growing trend of share households is attributed to a combination of shifting social norms and a decline in affordable rental properties. This is particularly acute in our capital cities but is also evident in regional centres.
An emerging group of tenants – professionals, couples, young families and students – who cannot afford to buy or rent an entire property of their own are increasingly turning to shared occupancy as a way to afford housing. Home owners are also noted as a group for whom shared occupancy has benefits by generating extra income for mortgage repayments.
Tight budgets affect all ages
My research on share housing across all age groups shows it’s mainly driven by financial constraints. In older age, the experience of this is gendered. Although older men are sharing, women in particular are more vulnerable to significant financial constraints in old age.
Women are the fastest-growing group at risk of homelessness in Australia. Many have limited superannuation to draw upon due to time out of the workforce to raise children or manage the home. This means the ramifications of the gender wage gap are particularly visible in older life – to quote one participant, “a man is not a superannuation”.
A common scenario is people falling out of home ownership after divorce or a relationship breakdown. Without the family home and with limited material assets, share housing is one of a diminishing set of options for living affordably and securely.
Share housing has its challenges
Moving into share housing in later life can be an adjustment. Many older people are in share housing for the first time in their life, having previously owned their own home.
There are obvious social challenges inherent in this situation. These include learning to negotiate domestic spaces in new ways. And certainly many are vulnerable to being exploited by unscrupulous flatmates, head tenants, or landlords.
Similar to share-housing experiences among younger groups, older participants mentioned occasional household conflicts and were aware of the need for personal space.
But there are also social benefits
However, some also reflect positively on the social value of share housing. This has been an unexpected benefit for many of them. At an age when isolation and loneliness increase, this is particularly important.
Older residents value the social aspects and the new friendships that sometimes develop in share houses. Flow-on effects of this include an increase in their sense of safety and security, knowing that they are not alone should anything untoward happen.
Long-term policy challenges loom
Although share housing in older age has social benefits, its rise should prompt us to reflect critically on Australia’s housing market as well as rethinking retirement policy. Share housing is directly correlated to declining housing affordability.
These trends highlight systematic disinvestment in public and social housing for the past 30 years as well as a market that has encouraged housing as a site of investment. The result is a system that has produced housing as a site of profit rather than housing as a site of home.
For older people, the situation is particularly complex. Australia’s retirement policies promote home ownership as the pathway to a financially secure old age. That leaves the growing number of older Australians who don’t own their own home to experience increased financial stress.
The Australian Dream of the owner-occupied home is quickly becoming that – a dream rather than reality for many Australians. The cracks are starting to show. As people fall out of home ownership and the younger generations doubt they’ll ever own a home – they’re not called Generation Rent for nothing – Generation Share will present significant challenges for policy.
Sophia Maalsen, I.B. Fell Postdoctoral Researcher, School of Architecture, Design and Planning, University of Sydney
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/generation-share-why-more-older-australians-are-living-in-share-houses-107183" target="_blank">original article</a>.
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Why more older Australians are living in share houses: Sophia Maalsen

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Rental property listings on realestate.com.au will now be featured on the share accommodation website Flatmates.com.au.
Users of Flatmates.com.au will be able to select a 'Teamup' function with people looking for accommodation in the same location.
Andrew Rechtman, REA Group Executive General Manager – Residential, said flatmates.com.au is Australia’s biggest website for people searching for share accommodation, with someone finding a new flatmate every two minutes.
“By syndicating realestate.com.au rental listings on Flatmates.com.au, we’re creating an opportunity for agents to not only increase the exposure of their listings, but also to reach a previously untapped audience,” he said.
Thomas Clement, Flatmates.com.au CEO said people who team up on Flatmates.com.au will head to realestate.com.au to find a rental once they’ve found each other.
“Displaying rental listings on Flatmates.com.au provides members with a seamless experience and showcases the rental properties to an entirely new audience,” he said.
 
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