Rental Vacancy Rates Sore Nation Wide as One in Six Australians Change Living Arrangements due to COVID 19.
Because of the widespread coronavirus epidemic, almost one in six people in Australia have made adjustments to their living situations. A small percentage of Australians are selling their homes outright, moving back in with their parents, delaying their intentions to relocate, taking on additional housemates, and even moving back in with their parents.
About 12% of people had actively changed their situation by either moving or inviting others to join them in their current residence. A further 3% had decided to postpone their transfer, and the remaining 1% had made other adjustments to their plans, although these were not defined.
Those who were already living alone and had made the decision to either move back in with their parents or postpone moving out were the ones who were hit the hardest. This seems to suit the milieu of staying home' that we are currently experiencing, in which families are obviously deferring major decisions regarding relocation. The biggest hit group was families with only one parent, with roughly 30% of those families relocating, and 12% of those families moving into shared living arrangements.
In the meantime, those who rented their homes rather than owned them were more likely to relocate than homeowners were, people who were single were more likely to relocate than those who were in relationships, and people who had dependent children were 45 percent more likely to have relocated.
As the coronavirus continues to take its toll on living arrangements, one of the most surprising things that new numbers reveal is that about one in four children who are now adults in Australia have moved back in with their parents.
A poll conducted in May among more than one thousand people in Australia and conducted by the comparison website Finder found that 26% of households have an adult child living at home. This finding comes as the economic effect of the coronavirus pandemic continues to unfold. Twenty-one percent of adult children who were living away from home returned owing to the COVID-19 outbreak.
The severity of the pandemic has caused many families to reconsider their living situations, leading many to wonder whether they will be able to manage a rise in their utility, water, and grocery expenses and whether their children will be able to find work again.
The study also discovered that adult sons were more likely than adult daughters to relocate back in with their parents due to coronavirus. This was a significant finding.
Following the lockdown, there has been an increase in the number of rental listings available. One of the reasons for this is that more people are breaking their contracts in order to move back in with their parents. As a result of recent employment cuts and reductions in income, thousands of adult kids, sometimes known as "kidults," who are aged 21 and older do not have sufficient funds to pay their rent and other costs.
Spike in Rental Listings
This resulted in a rise in the number of rental listings that were available on the market. After COVID-19, there was a significant and almost immediate rise in the number of listings. The high levels of unease in the housing rental market were the primary factor behind it. Renters were highly vulnerable to job loss because they tended to be younger, more likely to hold casual jobs, and more likely to be employed in the tourism, hospitality, and education industries. As a result, it is likely that many renters considered moving back in with their parents (especially if they were students) or looking for roommates.
The number of vacant properties in the central business districts of Australia's three most populous cities has skyrocketed, and recent statistics have recorded the greatest monthly increase in the national vacancy rate in more than a decade.
As a result of the COVID-19 pandemic, the rental market in Australia has been overwhelmed with unoccupied properties. According to newly released data, more than 88,000 residences were left empty in the month of April.
The vacancy rate in the Central Business District of Sydney more than doubled from 5.7% in March to 13.8% in April, while the vacancy rate in the Central Business District of Brisbane increased from 5.7% to 11.3% during the same time period.
The Central Business District of Melbourne fared better, with a vacancy rate that increased by 2.6 percentage points to 7.6 percent. On the other hand, the vacancy rate in Southbank skyrocketed from 5 percent to an astounding 13 percent.
Vacancy rates increased significantly in popular tourist destinations such as Surfers Paradise and Noosa, reaching more than twice their previous levels of 6.8 and 8.5 percent respectively.
It is anticipated that the national vacancy rate will remain high until international borders are reopened, and it has been warned that it could push even higher, as new apartment supply enters the market at a time of reduced migration and local demand as households consolidate due to economic uncertainty.
The increase in the number of properties that are available is already exerting downward pressure on rent prices. According to the numbers for the week that ended on May 12, 2020, the asking rentals for houses in the capital city dropped by 1.3%, while the asking rents for units remained steady.
HOW TO SAVE RENT EVEN IF YOU CAN'T MOVE BACK HOME
- Make sure you ask for a discount. If you don't contact your landlord about a possible rent reduction, they very probably won't provide one even if they are prepared to do so.
- Get yourself a roommate. The burden caused by monthly bills might be significantly reduced by renting out a spare room. Be sure to verify such information with the landlord first.
- Utilize any unused space you have. Do you have a garage or storage area that is not being used and that you could rent out? The surplus funds can be applied to the payment of the weekly rent.
- Spend less on food and other basics. It all adds up, whether you're looking for a cheaper energy provider or a better plan for your cell phone.