Inside the drastic solution to the housing crisis – and boomers won’t be happy about it

Boomers have been urged to retire abroad and rent their homes to the younger generation to provide more living space for desperate Aussies.

The bold solution, dubbed “renting” by researchers at Suburbtrends, would bring up to 130,000 new rental properties onto the market at a time when vacancy rates are at record levels.

The scheme would encourage people aged 67 to 77 to rent their homes to younger Aussies and then travel abroad or retire.

The proposal would provide a five-year moratorium on the loss of primary residence benefits, meaning retirees would be able to keep their pension benefits abroad.

Suburbtrends founder Ken Lardner said ‘rental’ is a win-win for retirees, renters and the government and would provide tenants with more housing options.

Boomers have been urged to retire abroad and rent their homes to younger Australians to provide more living space for desperate renters (pictured, inspection queues in Sydney)

The scheme would encourage people aged between 67 and 77 to rent their homes to younger Aussies and then travel abroad or retire (stock image)

“Our data shows that more than 137,000 homes could be released to the rental market if just 10 percent of the Rentires cohort participated,” he said.

“This represents a substantial untapped resource that could dramatically alleviate rental pressures. While increasing housing supply is essential, this simply will not happen quickly enough to meet the immediate needs of tenants.”

In March, data from Domain showed that the national vacancy rate hit a record low of 0.7 percent.

This figure is much lower in cities such as Adelaide and Perth, where the rate is 0.3 percent.

Mr Lardner said retirees could benefit from lower costs of living in South East Asia, while at the same time triggering an “immediate” influx of rental properties.

“Renants can enjoy a higher quality of life at a fraction of the cost, renters can access more housing and the government can ease 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 renttirement offers a practical and timely solution to Australia’s rental crisis. It’s time to think outside the box and explore all options to ensure a stable, affordable housing market for all Australians,” he said.

New PropTrack data has shown that the number of rental properties costing less than $400 per week has fallen from 43.2 per cent at the start of Covid to 10.4 per cent now.

The share of rental properties below $400 per week is 5.9 percent in regional areas.

In March, data from Domain showed that the national vacancy rate hit a record low of 0.7 percent

Meanwhile, new research has shown that young people in Australia are being forced to live at home longer due to pressures on the cost of living.

A survey by Household, Income and Labor Dynamics in Australia (HILDA) from the University of Melbourne found that 54 percent of young men and 47 percent of young women aged 18 to 29 were still living under the same roof as their parents.

According to the researchers, there were a number of factors preventing young Australians from getting their first foothold on the property ladder.

Professor Roger Wilkins from the University of Melbourne said many young Aussies were taking longer to find their way into the job market, incomes were falling and the cost of living was rising.

“We have seen a rise in higher education participation, declining full-time employment for young people, rising housing costs and a trend towards later marriage and family formation,” Prof Wilkins said.

“The traditional signs of adulthood now occur later in life.”