Share house prices sky rocket in Inner West
Image: The Housing affordability crisis in Sydney is pushing share house prices up in the Inner West. Credit: Wikimedia Commons
By SATHSARA RADALIYAGODA & TOMMY BOUTROS
Sydney’s housing affordability crisis is putting immense pressure on shared housing in the Inner West.
Between 2011 and 2014 the area has seen an increase of 30,000 people living in shared housing accommodation.
Andrew Potts, National Convener for the Affordable Housing Party of Australia, said the situation is so dire that students are moving into boarding houses meant for the most vulnerable members of the community.
“We’re seeing this situation where students are moving into crisis accommodation, where boarding houses are filled with young students and not for those in crisis,” he said.
Mr Potts also said real estate and property investors are taking advantage of the demand.
“Unscrupulous property managers are putting in bunk beds in every room, I’ve seen a three-bed house go for $1100 where there are potentially 12 sharing a bathroom,” he said.
William Pereria, Raine & Horne real estate agent in Marrickville said, “Sydney is becoming quite populated… there are eight to ten thousand people moving to Sydney weekly, so all of those people need homes to live in and that’s going to push up the price.”
Mr Pereria said shared housing has been the quick fix for a long term housing affordability problem.
He explained living in shared housing has become less affordable because more people are renting rather than buying which is pushing up the rental rate.
Inner West resident Ariel Celermajer said, “Housing is not affordable anywhere in the Inner West for the majority of people.”
Ashfield share house tenant, Claudia Brown said, “By Sydney standards, my housing is affordable at $177 per week, which is why I choose to live in a share house.”
Ms Brown said she hasn’t had much interaction with the Inner West Council but doesn’t feel they would be able to help with making shared housing more affordable.
“I feel that with such extensive damage being caused by negative gearing there wouldn’t be much wriggle room to help with affordability,” she said.
The Inner West Council is attempting to provide more affordable housing and has approved nine boarding houses in 2016-2017, with six more pending.
While a 15 percent affordable housing target is currently within reach for the Inner West of Sydney, some community groups believe that it should be risen to 30 percent to further accommodate those who are in dire need.
Mr Potts believes that even if higher affordable housing targets are in the works, the nature of real estate and property investors will result in the continued rise of shared housing rents.
