More Australians are turning to shared accommodation as living costs climb, with implications for how mortgage advisers assess borrowing capacity, housing preferences and long-term property plans.
This year’s Flatmates.com.au National Share Accommodation Survey – based on responses from more than 4,500 Australians in the share house community – shows cost pressures are the dominant driver behind shared living, but also that many tenants are successfully using it to save.
This shift is occurring against a backdrop of housing affordability that has only improved marginally in 2025 and remains close to record lows, with median-income households able to afford just 15% of homes nationally.
The survey found that 55% of respondents cited cost of living as the primary reason for moving into share accommodation, confirming that shared housing is more about financial necessity than lifestyle choice for many.
Among those listing a spare room for rent, 58% said they were doing so because of rate rises and financial stress, while 45% of room seekers said they could not afford a whole property on their own.
Sentiment around ownership is subdued: seven in 10 respondents believe the Australian dream of owning a property is unattainable for young people. At the same time, shared living is helping many improve their financial position, with 71% of room seekers saying they have been able to save more money by living with others.
Broader market data reinforces this pressure: despite slightly stronger affordability in 2025, mortgage serviceability is still close to 45% of household income, while renters are spending more than a third of their income on rent. Even with higher incomes and RBA rate cuts in February and May, the typical household still needs around 5.8 years to save a 20% deposit for a median-priced home, and lower-income buyers can access only a tiny fraction of the market.
Flatmates.com.au noted: “It’s evident that Australians are feeling the pinch, with almost six in 10 respondents identifying cost of living as their key reason for moving into shared living.
Shared accommodation is no longer just the domain of students and twenty-somethings. The survey shows a notable rise in older Australians opting for share houses, particularly those aged 55 to 64.
In this age group, 15% of respondents fell into this bracket, up from 9% in 2024, indicating that older Australians are leaning on shared housing to offset higher mortgage repayments, rental costs, or reduced incomes.
Reflecting this demographic shift, 79% of respondents are not currently studying, up from 71% in 2024.
"This defies the common perception that share house living is mostly for students or younger people," Flatmates.com.au said.
While financial strain is the primary trigger, shared living is not purely about the numbers.
Companionship was cited by 11% of respondents as a motivator, with tenants valuing friendships and day-to-day company.
Almost one in two respondents said their share house feels like home, and on average, they rated their relationship with flatmates 4.2 out of 5, indicating mostly positive living experiences.
The survey also points to a recalibration of property plans rather than a complete abandonment of homeownership.
“Looking forward, seven in 10 respondents say the cost of living has impacted their property plans for the next few years, so we can expect to see more Australians from all demographics turning to shared accommodation," Flatmates.com.au reported.
Despite the pessimism around the traditional “Australian dream,” shared living is helping many maintain a sense of stability and home.
As Flatmates.com.au concludes: “Though the Australian dream of owning property may feel distant for some, it’s amazing to know that nearly half of respondents believe their share house truly feels like home in the meantime.”
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