Boomers have been urged to retire overseas and rent out their homes to the younger generation to provide desperate Aussies with more places to live.
The bold solution, dubbed ‘rentirement’ by researchers from Suburbtrends, would introduce up to 130,000 new rentals to the market amid record low vacancy rates.
The scheme would encourage people aged between 67 and 77 to rent out their homes to younger Aussies and then travel or retire overseas.
The proposal would offer a five-year moratorium on the loss of the primary residence benefit meaning retirees could retain their pension benefits overseas.
Suburbtrends founder Ken Lardner said ‘rentirement’ was a win-win for retirees, renters and the government and would provide renters with more housing options.
‘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. While increasing housing supply is essential, it simply won’t come fast enough to address the immediate needs of renters.’
In March, data from Domain revealed the national vacancy rate hit a record low of 0.7 per cent.
The figure is much lower in cities such as Adelaide and Perth where the rate is 0.3 per cent.
Mr Lardner said retirees could take advantage of the reduced cost of living in southeast Asia while triggering an ‘immediate’ influx of rentals.
‘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,’ he said.
He said it was time to ‘think outside the box’ when it came to the housing crisis.
‘We believe rentirement offers a practical and timely solution to ‘s rental crisis. It’s time to think outside the box and explore every avenue to ensure a stable, affordable housing market for all ns,’ he said.
New PropTrack data has revealed the number of rental properties costing less than $400 a week has fallen from 43.2 per cent at the start of Covid to 10.4 per cent now.
The proportion of rentals less than $400 a week is 5.9 per cent in regional areas.
Meanwhile, new research has revealed young people in are being forced to live at home for longer due to cost of living pressures.
A survey by University of Melbourne’s Household, Income and Labour Dynamics in (HILDA) revealed 54 per cent of young men and 47 per cent of young women aged 18 to 29 years old were still living under the same roof as their parents.
According to the researchers, there were a number of factors preventing young ns from gaining their first foothold on the property ladder.
University of Melbourne professor Roger Wilkins said many young Aussies were taking longer to find their feet in the workforce, incomes were falling and cost-of-living was going up.
‘We’ve seen a rise in higher education participation, declining full-time employment opportunities for young people, a rising cost in housing, and a trend towards later marriage and family formation,’ Prof Wilkins said.
‘The traditional markers of adulthood are happening later in life now.’