Where renting a room has climbed by $3000+ in just 12 months

Two Hobart suburbs have recorded a huge rise in the cost of renting a single bedroom over the past 12 months. Picture: Supplied

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MORE than half of the nation’s renters struggled to meet their rent repayments this year, with rooms in shared houses jumping by $65 per week in two Hobart suburbs and by $55 in another.

A new report shows New Town and West Moonah prices have climbed by the most over the past 12 months, followed by Hobart City.

In 10 Hobart suburbs, mostly on the western side of the river, the weekly median price of a single room has risen by between 10 and 31 per cent compared to this time last year.

Flatmates.com.au’s National Share Accommodation Survey, which surveyed more than 8700 renters and landlords across Australia, shows 57 per cent of renters had difficulty making their payments over the past year.

Sharing can be a good way to keep costs down.

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The annual report found that the main reason (72.5 per cent) for seeking share accommodation was the financial benefit.

However, for older Australians, there was a 30 per cent rise in respondents opting for shared living for the companionship that it offers.

The report found a higher number of older Australians are entering shared housing, with the over-75s the fastest growing demographic in 2024.

Thirty-five per cent of survey takers reported their rent has increased in the past six months, and half of which were higher than anticipated.

Forty-eight per cent of respondents said they would also be willing to live in a “home share” scenario with reduced rent in exchange for 10 hours of work per week around the home.

Of the respondents who had listed a room, 36 per cent had an additional unoccupied room, with three-quarters (72 per cent) aiming to lease the space to manage rising rent costs and financial pressures.

Community manager at Flatmates.com.au, Claudia Conley. Picture: Supplied

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Flatmates.com.au product manager, Claudia Conley, said ongoing cost of living pressures over the past 12 months have reshaped how Australians approach housing, with 43 per cent of respondents saying affordability constraints have pushed them into shared accommodation.

“With 57 per cent of respondents struggling to keep up with rent payments over the past year, the effects of the rental crisis remain present for many Australians,” she said.

“The sentiment among 55 per cent of survey respondents that property ownership is out of reach for young people highlights the growing sense of uncertainty about long-term housing security.”

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With the rising cost of living, Ms Conley said renting out a spare room is fast becoming an attractive option for people seeking a second income stream.

“According to the NSAS, nearly three-quarters of spare room listers are driven by growing rent pressures and financial stress, turning unused space into a much-needed additional income,” she said.

The Flatmates findings come as rental affordability sits at its worst level in at least 17 years, according to PropTrack’s Housing Affordability Index, which ranked Tasmania as the second least affordable state for renters behind only NSW.

“Renters in Tasmania face extremely strained rental affordability,” report authors Angus Moore and Paul Ryan said.

“Reflecting the dire state of rental affordability in Tasmania, a household earning median income for Tasmania — equivalent to $79,000 per year — could afford to rent just 20 per cent of advertised rentals.”