In a challenging turn of events, Gold Coast tenants are resorting to shared living arrangements, accommodating up to five housemates to cope with soaring rental prices. The escalating housing costs have prompted a struggle for affordability, with residents like disability support worker Lillian Reed facing the tough reality of residing in Queensland’s most expensive rental location.
Ms. Reed, who moved to the Gold Coast two years ago, shares a four-bedroom house with four others due to the exorbitant living expenses. Initially planning to live in a beachside suburb, financial constraints led her to occupy the smallest and most economical room in her Varsity Lakes residence. Working six days a week has become a necessity, given a $110 increase in rent over the past year.
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Veteran real estate agent Dot Hamilton, managing properties from Pimpama to Banora Point, observes a rising trend of tenants sharing homes to manage costs. Notably, a four-bedroom property currently houses six occupants, reflecting the lengths to which residents are going to address affordability concerns.
In addition to the growing phenomenon of shared living, a shift is noted in the Gold Coast property landscape, with newly sold homes predominantly being owner-occupied rather than returning to the investment pool.
Despite being an attractive living destination, the Gold Coast surpasses Greater Sydney, Melbourne, and Brisbane in rental expenses. December’s PropTrack data reveals median rents of $850 weekly for houses and $680 for units, marking a 7.1% surge in rental costs over the past year. Comparatively, a two-bedroom beachside apartment, which cost $450 weekly four years ago, now demands $730.
Ms. Hamilton highlights a significant change in tenants’ expenditure on rent, with the norm shifting from a maximum of 33.5% of income to an average closer to 43%. Instances of tenants allocating 50% of their income towards rent are becoming more common, with owners taking on the risk given the stability of tenants’ occupations.
The disparity between house and unit rentals in the city is narrowing, with a 9.7% increase in median unit rental costs over the past 12 months.
The Gold Coast now competes with only five areas in Sydney for the highest median unit rental prices across the country.
Despite the challenges, relief may be on the horizon. The Gold Coast experienced a notable influx of 65,000 interstate arrivals between 2020 and 2022, reflecting its status as one of the strongest growing regions.
PropTrack Senior Economist Angus Moore suggests a positive shift, noting a rental vacancy rate of 1.2% in December, compared to the pandemic’s 0.4%.
This development brings a glimmer of hope to Gold Coast residents grappling with the mounting rental crisis.
Conclusion
In conclusion, the Gold Coast’s rental crisis has led tenants to resort to shared living arrangements amid soaring prices, with individuals like Lillian Reed facing financial constraints and working six days a week to cope with a $110 increase in rent over the past year.
The property landscape is shifting, with owner-occupied homes becoming more prevalent, and tenants now allocating a higher percentage of their income, on average, to rent.
Despite the challenges, a glimmer of hope emerges with an influx of interstate arrivals and a rise in the rental vacancy rate, offering potential relief to Gold Coast residents navigating these formidable housing challenges. For those considering property alternatives, exploring options to sell gold may provide additional financial flexibility.
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