Melbourne’s share house boom suburbs leading landlord backlash: Flatmates.com.au

Hampton, Ringwood East and Burnside have been revealed as the suburbs leading Melbourne’s landlord backlash.

The cost for a room in share houses in the three suburbs has surged from 62-80 per cent in the past year, as tenants turn their back on traditional rentals amid a housing crisis that has pushed the city’s rents up by $40 a week in 12 months.

Flatmates.com.au figures show the typical room rate in bayside Hampton is now $325 a week, up by $145 a week on the same time a year ago.

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But it’s still far more affordable than renting solo, with separate PropTrack data showing taking out a lease for a house will set you back $1150 a week and a unit $625 every seven days.

They’re joined by inner suburbs including Flemington, Essendon West, Seddon and Blackburn North, where the price of renting a room in a share house has risen from 43-60 per cent.

Further out, Nunawading, Sunshine West and Burnley also made Melbourne’s top 10 suburbs for rising room rates.

Room for rent in Ringwood East - asking $300 a week - for herald sun real estate

A room for rent in Ringwood East is asking $300 a week.

Room for rent in Hampton - asking $400 a week - for herald sun real estate

A single room for rent in a Hampton house comes with a $400 a week asking price.

Flatmates.com.au product manager Claudia Conley said the increasing prices for the suburbs was “definitely” a sign that demand for share houses was rising as tenants there fought back against increased rental costs for traditional single-household leases.

“It also shows the diversity of demand for share accommodation … due to the rising costs of living we are seeing more families now needing share accommodation, and more single parents and more people over 55,” Ms Conley said.

Earlier this month PropTrack data revealed the vacancy rate in Victoria’s capital increased by 30 per cent in the past 12 months, though still remained tight at 1.64 per cent.

Tenants Victoria chief executive Jennifer Beveridge said they were hearing from tenants facing big rent hikes daily, with a steep increase in inquiries coming from shared houses facing rent rises.

‘People on low and middle incomes are feeling the pain,” Ms Beveridge said.

“For many, including older Victorians, share houses are a necessity rather than a lifestyle choice. Renters are struggling even in suburbs that were once more affordable.

“With many people living in insecure housing situations or returning to shared housing, renters should make sure their names are on the lease, and that they understand their rights as renters.”

Room for rent in Nunawading - asking $300 a week - for herald sun real estate

Nunawading is known for spacious homes, and for $300 a week you can rent a spacious room in the suburb for half what it would cost to lease a house.

Room for rent in Sunshine West - asking $250 a week - for herald sun real estate

For just $250 a week this bedroom in Sunshine West could be yours.

Ms Conley said savvy landlords were leaning into the trend and making their homes available as a share house, with a surge in rooms for rent on the website actually outpacing the past year’s growth in demand from tenants looking to rent one.

She added that 45 per cent of those listing rooms for rent on Flatmates were traditional landlord owners, with a chunk of the increase in rooms available being driven by those who were turning to offering their property as a share house as a way to secure the rent needed to meet heightened mortgages.

Another facet of the increased offerings on the site is also thought to be recent first-home buyers bringing in house mates to help with their mortgage, with many of them likely to have been former tenants escaping the rental crisis.

Almost three quarters of the 8700 Australians responding to Flatmates.com.au’s annual National Share Accommodation Survey indicated that financial benefits were their key reason for looking for a share house.

About 57 per cent noted they were struggling to meet rent payments, a 14 per cent increase from 2023, with more than a third indicating the cost of keeping a roof over their head had increased in the past six months.

Room for rent in Seddon - asking $400 a week - for herald sun real estate

A rather impressive and spacious Seddon bedroom comes with a $400 a week asking price.

Room for rent in Hampton - asking $275 a week - for herald sun real estate

Room for rent in Hampton: asking an affordable $275 a week.

Close to half of the survey respondents have also indicated they would be open to doing 10 hours of work around their share house a week in return for a further reduction in their rent.

A hefty 55 per cent of those surveyed said home ownership was now out of reach for young Australians.

The data also reveals there is growing demand from Australians over 55 for share houses, rising 7 per cent in the past year, with half of those in that age bracket indicating they could no longer afford to live alone.

An increase in those aged 75-plus entering into share house arrangements reflected an increase in older Australians seeking someone who could move in to assist with mowing lawns or grocery shopping for the household in return for reduced rent.

Where Room Rents Are Increasing Most In Melbourne

Suburb	Median unit rent	Median house rent	Median room rent	12-month increase in room rent
Hampton	$625	$1,150	$325	80.60%
Ringwood East	$500	$590	$269	75.00%
Burnside	N/A	$550	$350	62.20%
Flemington	$450	$650	$300	60.00%
Essendon West	N/A	N/A	$320	56.30%
Seddon	$490	$650	$313	54.10%
Blackburn North	$580	$620	$258	42.70%
Nunawading	$510	$600	$275	42.70%
Sunshine West	$430	$460	$250	40.00%
Burnley	N/A	N/A	$350	34.50%