Share house rooms spike as international students and travellers leave hole in the market

Just a few weeks ago, Lachie Hayes was living a carefree life in a share house in Fitzroy with four other housemates.

That was until the coronavirus pandemic hit, forcing three of his housemates, from London and Canada, to move home after losing their jobs.

Hayes is now scrambling to find new housemates by advertising on Facebook and is about to add another advertisement of his own room.

“I’ve just decided I’m moving out myself,” Mr Hayes told Domain on Thursday. “I’m moving all my possessions in a friend’s shed and then moving to a beach house in Anglesea where I can stay for free.

“I’m not sure how much longer I’ll have my job.”

Mr Hayes is one of a growing number of people advertising spare rooms, following the rapid fallout from coronavirus that has stripped jobs from Australians working in the retail, beauty and hospitality industries (among others).

Many are desperate to find replacement housemates to help pay the rent and keep a roof over the heads.

In the past two weeks, the number of rooms being advertised for rent on some social media platforms and websites has more than doubled. 

That figure may get worse given predictions that more than 1 million Australians will be out of work by November.

In Melbourne, Fairy Floss Real Estate, a subletting service on Facebook, has seen daily posts of available rooms double to about 500 a day. Active members of the platform have jumped by 50 per cent to 75,000.

It’s a similar story in Sydney, where Facebook group Inner East and West Housemates has had a jump in users and posters. In the past 30 days, more than 2000 posts have gone up for rooms in suburbs including Bondi, Coogee, Newtown and Surry Hills.

The group has grown by more than 800 people, now having about 44,000 active members.

In the past week, posts on subletting channels have often referred to COVID-19 as a reason for needing a new housemate.

Flatmate Finders have also had a skyrocketing number of people posting to look for flatmates, while the number of flatmates looking for a home has fallen.

Moreover, in the past few days, 43 per cent fewer people have looked to move in somewhere new in Australia via the website.

Flatmate Finders business manager Guy Mitchell said many posters had been in touch with the business to re-advertise rooms as they had lost their jobs and were moving in with family.

“It seems to be the same story repeated over and over,” he said.

Justin Butterworth, CEO of Snug.com, which moderates the Fairy Floss Real Estate Facebook page, said they had noticed a huge jump in activity from posters as the coronavirus took hold.

“Obviously, renters have been hard hit through job loss or salary reduction,” Mr Butterworth said. “We’re likely to see many people looking to bolster their income by subletting a spare room or by moving in with their partner and subletting their own room.” 

With international students and international travellers now banned from Australia, the pressure was intensifying on those looking to find a housemate, he said.

“A lot of students and backpackers usually sublet and they have now left a gap in the market,” Mr Butterworth said.

Adding to the woes for renters is that some landlords have brought forward rent rises at a time when many are asking for leniency or for rent reductions.

Mr Hayes’ landlord had been in touch about the rent saying they expected payment as usual.

While it may seem harsh, landlords are likewise concerned they will not be able to pay their mortgages, Mr Butterworth said.

“We think no one should be evicted on a financial hardship basis, but we do think rent extra assistance is required to help renters to meet their obligations,” he said.

It was a call echoed by the Real Estate Institute of Australia, who also wanted to see more financial help for renters who did not qualify for JobSeeker or Newstart payments.

While renters have been offered some reprieve with the national cabinet agreeing they cannot be evicted if they have financial hardship because of the economic fallout from the coronavirus crisis, nothing has been promised for landlords in need.

More announcements regarding the issues were expected on Friday.

Tenants Victoria chief executive Jennifer Beveridge said action needed to be taken as the COVID-19 health crisis had left huge numbers of people with no money, including many renters who had previously enjoyed good incomes and stable jobs.

“We are waiting for action from federal and state governments to protect this group in the current health crisis. If you don’t have a roof over your head it is impossible to socially distance or self-isolate,” Ms Beveridge said.

Self-isolation in share houses was proving hard, but Mr Hayes said he was taking extra precautions while interviewing prospective housemates during the pandemic.

“It’s kind of not ideal, I mean I’m concerned, I’m laid back but still vigilant,” he said. “You can’t be too vigilant right now.”

• Renters facing financial difficulties are encouraged to seek assistance through the National Debt Helpline on 1800 007 007.