Key Findings:
·ÌýÌýÌýÌýÌýÌý 4 percentÌý ofÌý Sydney’sÌý householdsÌý areÌý classifiedÌý asÌý ‘group’Ìý (unrelatedÌý adultsÌý livingÌý together),Ìý risingÌý toÌý 10.8 percentÌý inÌý innerÌý Sydney.
·ÌýÌýÌýÌýÌýÌý A quarterÌý ofÌý thoseÌý seekingÌý shareÌý accommodationÌý indicatedÌý aÌý rentalÌý budgetÌý ofÌý up ÌýtoÌý $200Ìý perÌý week.
·ÌýÌýÌýÌýÌýÌý LessÌý thanÌý 5 percentÌý ofÌý shareÌý vacanciesÌý wereÌý affordableÌý forÌý thoseÌý inÌý theÌý lowestÌý incomeÌý quintile, highlighting while sharing provides a lower cost option, it is not necessarily affordable for very low-income earners.
·ÌýÌýÌýÌýÌýÌý DataÌý suggestsÌý aÌý tightÌý marketÌý forÌý shareÌý housingÌý vacancies,Ìý mirroringÌý theÌý formalÌý sector.
·ÌýÌýÌýÌýÌýÌý While the shareÌý housingÌý marketÌý isÌý aÌý smallÌý componentÌý ofÌý theÌý housingÌý system, it plays an importantÌý roleÌý inÌý supplyingÌý accommodationÌý toÌý thoseÌý withÌý limitedÌý budgetsÌý andÌý options.
·ÌýÌýÌýÌýÌýÌý Online platforms have facilitated an informal housing share ‘market’, connecting potential sharers beyond their social networks or local area, and enabling rapid and informal increases in rental accommodation duringÌý periodsÌý ofÌý highÌý demand.Ìý
The study, , recently published in Housing Studies, was conducted by Professor Nicole Gurran, Dr Zahra Nasreen and Dr PranitaÌý Shrestha from the Sydney SchoolÌý ofÌý Architecture,Ìý DesignÌý andÌý Planning.
Whether a lifestyle choice or economic necessity, these informal sharing arrangements have attracted limited research and policy attention in part because they are difficult to detect or monitor.
Using Sydney, one of the world’s most expensive housing markets, as the case study, the researchers examined how people are seeking share accommodation using listings via online platforms, such as Flatmates.com.au, in the absence of a sufficient government response to an unmet housing need.
LivingÌý inÌý aÌý shareÌý house,Ìý ‘flatting’,Ìý orÌý bunkingÌý withÌý ‘roomies’,Ìý has long been regarded anÌý importantÌý riteÌý ofÌý passageÌý forÌý youngerÌý adultsÌý leavingÌý theÌý familyÌý home.
However the risingÌý barriersÌý toÌý home ownershipÌý andÌý aÌý shortageÌý ofÌý affordableÌý rentalÌý supply meansÌý thatÌý sharingÌý isÌý playingÌý anÌý increasinglyÌý importantÌý role.
“Within these contexts, new sharing practices and informal markets for shared accommodation are emerging, often via online platforms. Through these platforms we are seeing a sustained demand for share housing exceeding the advertised supply rates,� said Professor Gurran.
“InÌý fact,Ìý this demand was despite aÌý periodÌý ofÌý lowÌý populationÌý growthÌý overÌý theÌý COVID-19Ìý pandemic,Ìý andÌý despiteÌý widerÌý opportunitiesÌý toÌý relocateÌý toÌý potentiallyÌý lowerÌý costÌý housingÌý marketsÌý whileÌý workingÌý remotely.
“ThisÌý sustainedÌý demandÌý forÌý shareÌý housingÌý impliesÌý thatÌý inÌý expensiveÌý citiesÌý suchÌý asÌý Sydney,Ìý affordabilityÌý pressuresÌý areÌý sufficientÌý toÌý outweighÌý preferencesÌý forÌý privacy,Ìý autonomy,Ìý orÌý housingÌý amenity.
“As we know, there is aÌý chronicÌý shortageÌý ofÌý affordableÌý housing, and the longer-termÌý implicationÌý ofÌý thisÌý studyÌý addsÌý toÌý theÌý extensiveÌý volumeÌý ofÌý researchÌý demonstratingÌý thatÌý policyÌý interventionÌý isÌý neededÌý toÌý supportÌý andÌý subsidiseÌý affordableÌý rentalÌý housingÌý inÌý highÌý demandÌý locations.
“ItÌý isÌý alsoÌý important therefore,Ìý toÌý ensureÌý thatÌý futureÌý residentialÌý developmentsÌý areÌý ableÌý toÌý accommodateÌý differentÌý householdÌý types.â€�
The study found demandÌý forÌý shared housingÌý followedÌý theÌý contoursÌý ofÌý Sydney’sÌý overallÌý housingÌý market,Ìý gravitatingÌý toÌý accessibleÌý locationsÌý nearÌý centralÌý employmentÌý areas,Ìý universities,Ìý trainÌý lines,Ìý orÌý beachfrontÌý areasÌý where amenities were easily accessible.
Map 1. SharedÌý housingÌý demandÌý byÌý suburbs
Source:Ìý FlatmatesÌý people’sÌý listingsÌý AugÌý 2020
With vacanciesÌý beingÌý createdÌý withinÌý theÌý existingÌý housingÌý stockÌý - oftenÌý due to existingÌý tenureÌý arrangements - theÌý supplyÌý ofÌý shareÌý accommodationÌý isÌý likelyÌý toÌý increaseÌý withÌý higherÌý housingÌý costs,Ìý affordabilityÌý burdens,Ìý andÌý reducedÌý vacanciesÌý acrossÌý theÌý formalÌý rental Ìýmarket.
Map 2. SharedÌý housingÌý supplyÌý byÌý suburbs.
Source:Ìý FlatmatesÌý accommodationÌý listingsÌý AugÌý 2020.
This informal market is becoming increasingly important as a default market to unmet housing needs. This is especially the case for vulnerable people inÌý the housingÌý system, those with income constraints, young people at transitional points in their life as well as Ìýworkers lookingÌý forÌý accommodationÌý close to their job locations.
While these online platforms may support an increase in the housing market’s flexibility and responsiveness, the researchers say it also brings potential new risks for vulnerableÌý renters , such as those with special housing needs, whichÌý therefore demands scrutinyÌý andÌý policyÌý intervention.Ìý
InÌý thisÌý way,Ìý platform- enabledÌý sharingÌý mightÌý beÌý regardedÌý asÌý anÌý informalÌý andÌý rapidly responsiveÌý ‘releaseÌý valve’Ìý forÌý theÌý overallÌý housingÌý systemÌý duringÌý periodsÌý ofÌý highÌý demand.Ìý And it isÌý likelyÌý thatÌý theÌý roleÌý ofÌý platform- enabledÌý sharingÌý mayÌý becomeÌý evenÌý moreÌý importantÌý whenÌý populationÌý growthÌý resumes.Ìý
“TheÌý riseÌý ofÌý onlineÌý accommodationÌýÌý platformsÌýÌý opensÌýÌý newÌýÌý opportunitiesÌýÌý toÌýÌý viewÌýÌý theseÌýÌý hiddenÌýÌý arrangements,ÌýÌýÌý whileÌýÌýÌý alsoÌýÌýÌý propellingÌýÌýÌý newÌýÌýÌý practices and policies.â€� Said Professor Gurran.
“TheÌý policyÌý opportunityÌý isÌý toÌý repurposeÌý platformÌý technologyÌý forÌý socialÌý goodÌý –Ìý connectingÌý theÌý diverse groups ofÌý peopleÌý nowÌý unableÌý toÌý accessÌý affordableÌý rentalÌý housingÌý inÌý theÌý privateÌý marketÌý –Ìý withÌý appropriateÌý andÌý secureÌý alternatives.â€�
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Declaration: ThisÌý paperÌý isÌý partÌý ofÌý anÌý AustralianÌý ResearchÌý CouncilÌý (ARC)Ìý fundedÌý researchÌý projectÌý (projectÌý ID:Ìý DP200103202)Ìý onÌý urbanÌý planningÌý andÌý informalÌý housingÌý supplyÌý inÌý AustralianÌý cities.
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