Cost of living crisis pushes $100k earners into share housing

3 weeks ago 17

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Aussies earning more than $100,000 a year are being forced into shared housing as the cost of living wipes out the ability to save a deposit.

New data from CBRE and REA Group shows 53 per cent of renters would stay in their home if rent increased by $50 a week, while 37 per cent would be forced to move in search of something cheaper.

News Corp Australia first spoke to Melbourne renter Kat Whiteley in 2025, when she was living alone and planning to buy a home
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Since then, rising costs have derailed those plans and forced her into a share house.

“You’re earning enough to survive, but not enough to move forward,” Ms Whiteley said.

About 1.6 million Australians now rent apartments or flats, including nearly 300,000 aged between 35 and 44, while more than a third earn more than $100,000 a year.

Despite relatively strong incomes, many are still being pushed into shared housing, with 45 per cent of share house renters saying they cannot afford to live alone, even though 66 per cent would prefer to.

Grocery and power bills are wiping out renters’ ability to save, even for full-time workers earning more than $100,000. Picture: NewsWire/ David Crosling

It comes as grocery and power bills wipe out the ability for even full-time workers to build a deposit.

After previously living on her own, Ms Whiteley has since moved in with a housemate to stay afloat.

“Living on my own was becoming too difficult to sustain,” she said.

“If you want stability and some level of financial security, sharing becomes the only viable option.”

Even after splitting costs, she said saving remained out of reach.

“Groceries alone have become a major expense, even just buying the basics,” she said.

“So even working full-time, you’re still struggling to get ahead.”

Margin Finance director Damian Medici said saving a deposit while paying rent remains the biggest hurdle locking renters out of home ownership.

Margin Finance director and broker Damian Medici said renters were being squeezed out of home ownership by the cost of saving a deposit while paying rent.

“It’s saving for a deposit while paying rent at the same time, that’s the biggest hurdle,” Mr Medici said.

He said even high-income earners were being held back.

“They might be able to service a loan comfortably, but the deposit requirement holds them back,” he said.

Group of prospective tenants queue outside a complex to inspect a one bedroom apartment in Clovelly, Sydney.

Sydney renters are among the most pressured, as high costs and limited supply force many to share despite strong incomes.

Mr Medici said renters faced a stark trade-off when trying to enter the market.

“For someone renting at Moonee Ponds in Melbourne, to buy in that same area you’re realistically looking at about $1.5m,” he said.

“So people are faced with a decision, either save aggressively and compromise, or continue renting in a location they enjoy.”

He said reducing living costs was now essential for those trying to enter the market.

“Realistically, the only way to save right now is to either live at home or share accommodation to reduce costs,” he said.

REA Group economist Anne Flaherty says renters are under sustained pressure as rising costs make living alone increasingly out of reach.

Proptrack senior economist Anne Flaherty said the data showed share housing was increasingly about affordability, not lifestyle.

“Rent growth over the past decade has been significant across most markets, and renters are feeling it,” Ms Flaherty said.

“Two-thirds of share house renters would prefer to live alone, but right now that’s just not an option for many of them.”

Ms Flaherty said established inner-city suburbs were still dominating rental searches, with proximity to work, schools and public transport driving demand.