Offering incentives to older homeowners to rent out spare bedrooms could help ease Australia’s housing crisis, according to new research.

A briefing paper by QUT economist, Dr Lyndall Bryant, says with appropriate tenant matching and management (and guarantees pensions won’t be impacted) it could be a viable solution. “As one possible solution, I propose we shift the housing debate from new supply to better utilisation of existing housing, by assisting older homeowners to increase rental stock through renting out their spare bedrooms. Older Australians represent the highest proportion of homeowners, with over 80% of persons aged over 65 owning their own home. Research shows three-quarters of those homes contain three or more bedrooms, and 84% of these homes are under-utilised.”

Dr Bryant says it would ease the housing problem but also could help older people improve their finances. “If we can incentivise older Australians to rent out a spare bedroom, it serves the dual purpose of improving access to affordable housing and cost of living relief to vulnerable older Australians.”