Housing crisis: Australian Boomers told to ‘rentire’ and rent their homes

Aussies over 67 are being urged to rent out their homes and retire overseas in a radical housing proposition floated by property sector market researchers.

Suburbtrends says “rentirement” is a viable solution to the nation’s current housing shortage, which would activate over 100,000 rentals.

Rentirement encourages Australians aged 67 to 77 to release their homes into the rental pool, where they can then travel or retire overseas.

The initiative would offer a five-year moratorium on the loss of the primary place of residence benefit and aims to address the current housing shortage by providing more housing options for renters.

Suburbtrends believes this concept is a “win-win” for retirees, renters, and the government, as it urges policymakers to consider the approach to alleviate the housing crisis.

Kent Lardner, founder of Suburbtrends, only a small fraction of the demographic could bring over 130,000 homes into he rental market.

“Our data shows that over 137,000 homes could be released into the rental market if just 10 per cent of the Rentirees cohort participated,” he said.

“This represents a substantial untapped resource that could drastically ease rental pressures.”

Mr Lardner said current attempts are not easing rental stress at an adequate rate.

“While increasing housing supply is essential, it simply won’t come fast enough to address the immediate needs of renters.”

Southeast Asia’s significantly lower cost of living makes it an ideal destination for these retirees, Suburb Trends suggests.

“Rentirees can enjoy a higher quality of life at a fraction of the cost, renters gain access to more housing, and the government can alleviate pressure on the housing market without significant expenditure,” Mr Lardner said.

The market researcher stated that “rentirement” would lead to an immediate influx of rental properties, stabilising prices and reducing vacancy rates.

“We believe rentirement offers a practical and timely solution to Australia’s rental crisis,” Mr Lardner added.

“It’s time to think outside the box and explore every avenue to ensure a stable, affordable housing market for all Australians.”

Rental affordability in Australian capital cities has worsened significantly, with PropTrack reporting a drastic reduction in affordable rental homes. The proportion of rental properties costing less than $400 a week has plummeted from 43.2 per cent at the start of the pandemic to just 10.4 per cent now.

This figure is even lower in capital cities, at 5.9 per cent, indicating a severe shortage of affordable rentals.

PropTrack’s senior economist Eleanor Creagh told the ABC last week, “Crisis conditions have really gripped rental markets right around the country.”

Economists attribute the rising demand and rental prices to high migration rates and insufficient supply of new builds and long-term rental properties.