Australia’s escalating rental crisis is prompting more people to share housing or live with relatives, as rents rise at the fastest pace in over a decade. Commonwealth Bank Australia’s (CBA) latest report reveals that surging demand and constrained supply are driving rent increases, compelling many to adopt shared living arrangements to manage costs.

Currently, approximately 5% of Australians over 15 live in shared housing, marking a 1% increase from 2020 to 2021, which equates to around 200,000 additional people. Economist Stephen Wu highlights that a growing number are also residing with extended family, including siblings and grandparents, as household structures adapt to rising expenses.

The annual rent growth rate has reached 9%, the highest since 2008, fueled by near-record low vacancy rates in capital cities. Although rent increases have slightly moderated in Sydney and Melbourne, Wu forecasts only a gradual easing of rent inflation in the near term.