Baby boomers are the least likely cohort of renters to engage in rent bidding, according to new research from rent.com.au.
Results from the platform’s July renter survey on rental bidding showed 81 per cent of the 1500 renters surveyed didn’t like the practice while 60 per cent expressed their complete disapproval.
Of the Baby Boomers surveyed, 68 per cent said they hated rent bidding and would never do it, while 19 per cent said they don’t really like it and 8 per cent said they would prefer not to rent bid, but had considered it.
Just 5 per cent of Baby Boomers said rent bidding was fine and helped them get the home they wanted.
On the other hand, Millennials and Gen Z had a slightly more open stance, with 53 per cent of Millennials saying they hated rent bidding and would never do it, while 58 per cent of Gen Z concurring.
Just 3 per cent of Gen Z renters said rent bidding was fine and helped them get the home they wanted, while 5 per cent of Millennials said the same.
As for Gen X, 61 per cent of renters said they hated rent bidding and wouldn’t engage in the practice, while 6 per cent said it was ok.
Rent.com.au Chief Executive Officer Greg Bader said it was clear the nation’s rental crisis was having an effect on renter’s attitudes.
“The results of our survey are not surprising when you consider the unprecedented cost and availability pressures,” he said.
“It’s clear that the current market is driving renters to take extraordinary measures such as bidding wars and advance rent payments to secure a property.”
The survey also analysed weekly rent budgets and whether differing incomes had an effect on renters attitudes towards rent bidding.
It showed that tenants with a budget of $801 per week or more, which was the highest income bracket, were most open minded about rent bidding.
Of those tenants, 24 per cent said rent bidding was fine and helped them get the home they wanted, while 51 per cent said they’d never do it.
In contrast, of renters in the lowest budget bracket, below $400 per week, just 2 per cent said rent bidding was fine, while 66 per cent said they hated it and would never do it.
“The survey exposes a harsh reality – offering more money is no longer just a strategy to stand out; it’s a desperate move in the midst of a rental crisis,” Mr Bader emphasised.
“The ones most willing to play this game are those in the higher income bracket, currently paying $801-plus a week in rent – they can afford it.
“On the other hand, those strongly opposing this trend are struggling renters with a weekly budget below $400.”
“At Rent.com.au, we understand the challenges renters are facing in this market and encourage them to explore other measures before resorting to measures that could strain their budget.
“We recommend renters create a strong rental application that includes all the necessary documents, references, and more, along with a comprehensive Renter Resume that highlights why they’d make the ideal tenant.”
The survey also showed the three largest cities have seen significant increases in apartment rental prices, with Sydney, Melbourne, and Brisbane experiencing surges of 33 per cent, 30 per cent, and 30 per cent, respectively.
This surge has made it increasingly difficult for tenants to find affordable rental options in these cities.
Perth’s housing market has also been impacted, with house rental prices rising by 30 per cent.
Meanwhile, Sydney, Brisbane, and Adelaide have experienced a notable 24 per cent increase in house rental prices over the past two years.
These sharp rent price increases highlight the challenges renters face in securing affordable housing in our major cities.
