Cash-strapped tenants are going to desperate lengths to avoid paying rent as the housing crisis worsens, new research reveals.
Two out of five renters surveyed by comparison site, Finder, say they have taken extreme steps to cut or dodge rent in the past year, including relocating, house sharing, or borrowing money.
More than one in 10 relocated to a cheaper property or suburb, while eight per cent moved in with a loved one to avoid having to cover the cost of a lease.
A line up of people waiting to inspect a home in Brisbane. Photo: Steve Pohlner.
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Another seven per cent asked a friend or family member for money so they could afford the payment.
Finder home loans expert Richard Whitten said the data showed there was a “clear limit” to what people could afford.
“Too many tenants are finding themselves in financial stress because of how much they have to pay,” Mr Whitten said.
| Have you done any of the following to reduce or avoid paying rent in the last 12 months? | |||||||||
| Moved to a cheaper property/area | 13% | ||||||||
| Moved in with family or friends (rent-free or reduced rent) | 8% | ||||||||
| Asked for financial help from family or friends to pay rent | 7% | ||||||||
| Taken on a housemate/s to share rent | 6% | ||||||||
| Negotiated a rent reduction with my landlord/real estate agent | 6% | ||||||||
| Applied for government housing assistance (e.g., rent assistance) | 6% | ||||||||
| Fallen behind on rent payments | 6% | ||||||||
| Fallen behind on rent payments | 3% | ||||||||
| Taken out a loan to pay rent | 2% | ||||||||
| None of the above | 61% | ||||||||
| Source: Finder | |||||||||
The research also found six per cent of tenants surveyed had taken on a housemate to lower their costs, while a further six per cent had managed to negotiate a rental reduction.
The same number have applied for government housing assistance.
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Despite the grim outlook, Mr Whitten said there were strategies to lighten the load.
“Extending your search to surrounding suburbs, considering more modest properties, or even negotiating directly with landlords can help,” he said.
New research shows renters are going to extreme lengths to avoid paying rent. Picture: Andrew Henshaw.
“Some renters may also be eligible for government rent assistance. Another way to steer clear of the rental market is to keep living with your parents for a bit longer, if that’s an option.”
PropTrack senior economist Eleanor Creagh said Adelaide and Perth remained Australia’s toughest rental markets, with rental vacancies persistently low.
“They’ve sat below the 1 per cent level in both those capital city markets, which has been reflective of really emergency conditions where rental markets are incredibly tight, which has continued to put upward pressure on rents,” Ms Creagh said.
Eleanor Creagh is a senior economist at PropTrack.
“Although we’re seeing the pace of rental price growth ease and pull back in Adelaide and Perth, those markets still remain relatively tight and that’s keeping upward pressure on rents.”
Ms Creagh said she could not rule out rents continuing to move higher — just at a slower pace.
“Without a bigger supply response, it’s not likely that we’ll see rents moving backwards,” she said.
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