Share House vs Solo Rental: The Real Cost Breakdown

If you're weighing up whether to rent solo or share a house with others, the decision goes beyond just comparing weekly rent. Understanding the full financial picture can help you make a choice that actually works for your budget and lifestyle.

Both options have their place, and the right choice depends on your circumstances, priorities, and what you're willing to trade off. Here's what the numbers actually look like when you break down all the costs involved.

The obvious difference: Weekly rent

This is the most visible cost and often the starting point for the decision.

Share house scenario: In a major Australian city, a room in a shared house might cost anywhere from $180 to $350 per week, depending on location, room size, and house quality. In Sydney or Melbourne's inner suburbs, you're typically looking at $250 to $350 for a decent room. In Brisbane, Perth, or Adelaide, it might be $180 to $280.

Solo rental scenario: A one bedroom apartment in a similar location could range from $400 to $700+ per week in major cities. Sydney's median one bedroom sits around $650 per week, Melbourne around $500, Brisbane around $550.

At first glance, the shared house saves you $200 to $400 weekly on rent alone. That's $800 to $1,600 per month, or $10,400 to $20,800 annually. It's a substantial difference that matters when you're managing other financial commitments.

Utilities: The hidden variable

Rent is only part of the equation. Utilities can significantly affect your actual living costs.

Share house utilities: In a shared house, utilities are typically split equally among housemates. For a house with three people, you might pay:

• Electricity: $30 to $50 per person per month
• Gas (if applicable): $15 to $30 per person per month
• Water: Often included in rent, or $10 to $20 per person per month
• Internet: $20 to $35 per person per month

Total utilities in a share house: approximately $75 to $135 per person monthly, or $900 to $1,620 annually.

Solo rental utilities: When you're living alone, you're covering 100% of all utilities:

• Electricity: $80 to $150 per month (depending on usage, climate control needs)
• Gas: $30 to $60 per month (if applicable)
• Water: $30 to $50 per month
• Internet: $60 to $90 per month

Total utilities solo: approximately $200 to $350 monthly, or $2,400 to $4,200 annually.

The utility difference alone adds another $100 to $200 monthly in favour of share housing, or $1,500 to $2,500 per year.

Upfront costs: The initial hit

Both arrangements require upfront payments, but the amounts differ significantly.

Share house upfront costs:

• Bond: Typically four weeks' rent (your room only), so $720 to $1,400
• First month's rent in advance: $720 to $1,400
• Share of utilities connection: Often already connected, minimal cost

Total upfront for share house: approximately $1,440 to $2,800

Solo rental upfront costs:

• Bond: Four weeks' rent for entire property, so $1,600 to $2,800+
• First month's rent in advance: $1,600 to $2,800+
• Utilities connection fees: $50 to $150 for electricity, gas, internet setup

Total upfront for solo rental: approximately $3,250 to $5,750+

Moving into a solo rental requires roughly double the upfront cash compared to a share house. For someone rebuilding savings or managing existing debt, this difference can be significant.

Groceries and food: Shared vs individual

Food costs vary based on lifestyle, but living arrangements can influence patterns.

Share house reality: Most share houses don't involve shared grocery shopping, but there are informal savings:

• Shared staples: Housemates often contribute to communal items like milk, coffee, toilet paper, cleaning supplies
• Bulk buying opportunities: Easier to buy larger quantities when costs can be split
• Reduced food waste: More people means perishables are more likely to be consumed

However, you'll still typically spend similar amounts on your personal groceries as you would living alone, roughly $80 to $150 per week depending on eating habits.

Solo rental reality: Living alone means:

• All staples are your responsibility
• Buying for one can be more expensive per unit
• Higher risk of food waste with perishables
• No option to split bulk purchases

Your grocery costs might be similar per person, but the efficiency and waste factors can push solo costs slightly higher, perhaps $90 to $160 per week.

Transport and location trade offs

This factor is less direct but financially significant.

Share houses: Often located in more affordable suburban areas, which might mean longer commutes. If you're saving $300 per week on rent but spending an extra $50 per week on transport (fuel, parking, or public transport), your actual savings is $250.

Solo rentals: You might be able to afford a smaller apartment closer to work or in a more central location, potentially reducing transport costs and time.

The transport equation depends heavily on your specific circumstances, but it's worth calculating the complete picture rather than focusing solely on rent.

Furniture and household items

Share house: Most share houses come furnished with common areas already set up. You typically only need to furnish your bedroom:

• Bed and mattress: $500 to $1,500
• Desk and chair: $200 to $500
• Storage: $100 to $300
• Personal items: $200 to $500

Total initial furniture cost: approximately $1,000 to $2,800

Solo rental: You're furnishing an entire apartment:

• Bedroom furniture: $1,000 to $2,500
• Living room furniture: $1,000 to $3,000
• Kitchen items: $300 to $800
• Bathroom accessories: $100 to $300
• Appliances (if not included): $500 to $2,000

Total initial furniture cost: approximately $2,900 to $8,600

These are typically one off costs, but they're significant when you're making the initial move. If you're going from a shared house to solo rental, you might need to acquire most of these items.

The complete annual comparison

Looking at the full picture over a year (using mid-range estimates for a major city):

Share house annual costs:

• Rent: $13,000 to $18,200 (at $250 to $350/week)
• Utilities: $900 to $1,620
• Upfront costs (amortised): $480 to $933
• Furniture (amortised over 3 years): $333 to $933

Total: approximately $14,700 to $21,700 annually

Solo rental annual costs:

• Rent: $20,800 to $36,400 (at $400 to $700/week)
• Utilities: $2,400 to $4,200
• Upfront costs (amortised): $1,080 to $1,920
• Furniture (amortised over 3 years): $970 to $2,870

Total: approximately $25,250 to $45,390 annually

The difference: approximately $10,500 to $23,700 per year, or $875 to nearly $2,000 per month.

The intangible costs worth considering

Money isn't everything, and some costs don't appear on a spreadsheet.

Share house trade offs:

• Reduced privacy and personal space
• Need to coordinate with others on cleaning, guests, noise
• Shared responsibility for bills (complications if someone doesn't pay)
• Less control over common areas and household decisions
• Potential interpersonal friction with housemates

Solo rental trade offs:

• All household responsibilities fall on you alone
• Can feel isolating, particularly if you work from home
• No one to split emergency repair coordination with
• Complete financial responsibility if something goes wrong

Some people thrive in shared environments and find the social aspect valuable. Others find the privacy and autonomy of solo living essential for their wellbeing. Neither is better universally; it depends on your personality and life stage.

When share housing makes the most sense

Consider a share house if:

• You're managing significant debt and need to maximise repayment capacity
• You're building savings for a specific goal and timeline matters
• You're new to an area and want built in social connections
• You travel frequently and appreciate having others around when you're away
• You're comfortable with shared decision making and compromise

The financial advantage of share housing is most powerful when you're actively working toward a specific goal. If you're using that $1,000+ monthly savings to pay down debt, build an emergency fund, or save for a property deposit, the trade offs of shared living might feel worthwhile.

When solo rental might be worth the premium

Consider solo rental if:

• Your income comfortably supports the higher costs without financial stress
• You work from home and need consistent quiet and control over your environment
• You're in a life stage where privacy and independence are priorities
• You have irregular schedules that might conflict with housemates
• You highly value the ability to make all household decisions independently

Solo rental makes more sense when the premium you're paying delivers quality of life improvements that genuinely matter to your daily wellbeing and productivity.

The hybrid approach: Strategic share housing

Some people use shared housing strategically rather than seeing it as permanent.

The approach: Live in a shared house for a defined period (one to three years) while aggressively saving or paying down debt. Once you've reached specific financial milestones, transition to solo rental from a stronger financial position.

This strategy can work well when:

• You have a clear financial goal with a timeline
• You view the arrangement as temporary with a specific purpose
• You've found a stable, compatible living situation that's sustainable for your timeframe

The key is being intentional about what you're working toward rather than drifting in a situation that isn't quite right.

Making the decision for your situation

Rather than asking which option is better, consider asking:

• What are my current financial priorities and constraints?
• How much does privacy and autonomy matter to me right now?
• What stage of life am I in, and what might change in the next 12 to 24 months?
• Can I comfortably afford solo rent while still meeting other financial obligations?
• Would the savings from shared housing allow me to make meaningful progress on financial goals?

Your answers to these questions matter more than general advice because your situation is unique.

Tracking costs in either arrangement

Regardless of which option you choose, understanding where your money actually goes helps you make informed adjustments over time.

When you can see your complete spending picture, including rent, utilities, groceries, and transport, you're better positioned to evaluate whether your current arrangement is working financially or whether a change might serve you better.

Some people discover they're spending more than expected in a shared house due to social dining out or transport costs. Others find solo living is more affordable than anticipated because they've reduced other discretionary spending. The only way to know is to track the reality of your situation rather than relying on estimates.

Both shared housing and solo rental are valid choices that work for different people at different times. Understanding the complete cost picture, including the less obvious expenses, helps you make a decision based on reality rather than just comparing weekly rent figures.

This article contains general information only and is not financial advice. Everyone's situation is different, so consider what arrangement works best for your circumstances and priorities.

Understanding your spending across rent, utilities, groceries, and transport helps you see whether your living arrangement is working for your budget. WeMoney automatically categorises your spending, showing you exactly where your money goes each week. Track rent payments, spot patterns, and see your complete financial picture in one place. Download WeMoney free for iOS and Android.