With inflation, house prices, rents and the cost of living rising RBA Governor Philip Lowe told senate estimates this week more Australians need more people in their dwellings.

But for many this is already an uncomfortable reality as pressures have hit hard and those in the industry have confirmed it is already happening.

At 39 years old, Claire did not ever foresee herself having to share her housing with anyone other than her 18-year-old daughter.

For nine years she has rented houses for the pair but increasing cost of living pressures and rent rises meant they have had to open their Brisbane space up to strangers.

"The idea of sharing with somebody else, sharing my stuff I worked hard to achieve and have other people come in and not respect that space — that's a really hard thing to come to," Claire said.

She tried to make ends meet working part-time, running a business and doing other gig jobs such as food delivery.

Now working full-time in employment services and earning what she described as a middle income, filling the extra space was the only option left.

She said it was something her teenager struggled with.

"She's a very homely person and doesn't really like sharing her space," Claire said.

"Having other people has been an adjustment, her mental health has suffered."

With a family to take care of she said downsizing was unrealistic — and even if she did, the pricing for smaller houses was still "ridiculous."

"It's pathetic it's allowed to go on this long."

'We need more people to live in each dwelling'

During senate estimates Mr Lowe acknowledged more housing supply was needed but added that higher interest rates would alleviate some rental pressure by forcing people to "economise" their housing.

"That's the price mechanism at work. We need more people on average to live in each dwelling, and prices do that," Mr Lowe said.

However according to data from share accommodation site Flatmates.com.au, the number of people seeking to fill rooms in their homes has already significantly increased — with May 2023 breaking the record for the largest number of new users at 70,000.

Data provided showed the number of new sign ups each month had increased by up to 70 per cent compared to the same time last year.

Similarly, the number of active members increased up to 40 per cent compared to the same month last year.

The largest demographic on the website was still those aged 25-34, making up 31 per cent of their audience, followed by the 18-24 age group.

However, both of those age groups have declined by at least five per cent since May 2022.

Meanwhile the 55-64 age group has increased by 10 per cent in the same period.

Flatmates.com.au community manager Claudia Conley said there were a number of factors driving the 55-64 year age group increase, including marriage breakdowns, lifestyle change and entering into retirement.

For home owners, with rate rises pushing up mortgage costs she said a lot of people were seeing spare rooms they could rent out for additional income.

Similarly, she said cost of living is driving fewer young people to move out of their parents' homes, especially when they have the option to stay at home rent free.

She said like open houses, competition for spots in share houses is fierce.

"For people renting a room there are up to 70 people applying," she said.

Regarding Mr Lowe's comments, Ms Conley agreed share accommodation was one of many solutions to the current rental crisis.

"The biggest solution is supply, but obviously building homes takes time," she said.

'Bitter pill to swallow'

For Ballina resident Warren, his choice was between saving his business, his unit, or sharing.

Previously rent for his health clinic had increased at CPI, but the landlord this year plans to increase the cost to match market value— 44 per cent higher than what he pays now.

The 48-year-old also expects his mortgage repayments to increase by an extra $600 a month as he comes off fixed rates in December.

"And there's just no way I can take on the business rent increase and six months down the line take on the increase in the mortgage payments," he said.

"It's just impossible."