For years, Sydney and Melbourne apartments were the go-to investments for many traditional investors, however with high interest rates and other opportunities in the market place, investors are becoming more savvy. According to CoreLogic (2025), Sydney unit prices dropped by 1.2% last quarter, and Melbourne saw just 0.3% year-over-year growth—barely keeping pace with inflation.
With this sluggish price growth and underwhelming rental yields, investors are looking elsewhere. Meanwhile, Brisbane’s premium affordable housing market, particularly high-yield rooming houses, is stealing the spotlight, delivering rental yields over 8% compared to standard houses at just 4.19%.
The Shift Towards Affordable Smarter Smaller Homes With Higher Yields
Savvy investors are moving away from stagnating apartment markets in Sydney and Melbourne, opting instead for affordable, next generation rooming house models. These investments aren’t just about financial gain—they also serve a greater purpose by addressing affordable housing shortages.
What Are Next Generation Rooming Houses?
This type of housing is designed to be cost-effective while still providing high-quality, beautiful and highly livable spaces. When purposely designed to the ideal investment target market they offer private ensuites, kitchenettes, private courtyards and a beautiful lounge/dining area. There are shared larger kitchen and laundry facilities as well.
Kevin Doodney from the Future Housing Taskforce highlights that these homes are crucial for essential workers like teachers, government employees, and first responders. With Australia’s single-person households projected to hit 3.5 million by 2041 (AHURI, 2024), the demand for modern, affordable housing is only increasing. Queensland’s rooming houses are leading the way in meeting this need.
Why Smart Investors Are Choosing A Rooming House Strategy
✅ Higher Rental Yields & Cash Flow
Rooming houses in Queensland deliver over 8% rental yields, far outpacing traditional investments.
For instance, while a standard four-bedroom home in Brisbane might rent for $750 per week, a purpose-built rooming house with five self-contained units can generate over $2,000 per week—dramatically boosting returns.
✅ High Demand, High Returns
Brisbane’s rental market is tight, with a vacancy rate of just 1.1% (SQM Research, 2025), ensuring consistent rental income.
✅ Investor-Friendly Policies
Queensland supports rooming houses as part of its housing strategy, offering planning exemptions until December 2025.
✅ Socially Responsible Investing
Investing in rooming houses not only delivers financial returns but also helps solve Australia’s housing crisis.
✅ Market Growth & Limited Supply
Brisbane’s property market has seen a 14% reduction in available properties over the past three years, making it a competitive space (CoreLogic, 2025).
✅ Steady Growth & Development
With an annual growth rate of 14.5% and forecasts predicting median price increases of 9-14% in 2025 (SQM Research, 2025), Brisbane’s market is thriving.
✅ Major Infrastructure Projects
Brisbane’s Cross River Rail, Brisbane Metro, and Queen’s Wharf developments are expected to further boost property values and economic activity (Brisbane City Council, 2025).
Maximizing Returns on Rooming House Investments
📍 Choose the Right Suburbs
Look for high-growth areas with strong rental demand and planned infrastructure projects. Being near universities, transport hubs, and job centers increases rental appeal.
🤝 Work with Experts
Navigating rooming house investments requires experienced professionals—builders, planners, and property managers who specialize in this market (High Yield Property Club, 2025).
✅ Stay Compliant
Queensland’s rooming house regulations can be complex, so having a knowledgeable team ensures smooth approvals and operations.
Future-Proofing Your Investment
With superior rental yields (8%+), strong market growth (14.5%), and the 2032 Brisbane Olympics driving infrastructure and demand, rooming houses are proving to be a smart alternative to struggling apartment markets. Investors looking for both profit and purpose are turning to Brisbane’s high-yield housing market for long-term success.
Rooming Houses FAQ: Your Data-Driven Guide
Why choose Brisbane’s rooming houses over Sydney and Melbourne apartments?
➡️ Higher yields (8%+ vs. 3-5%)
➡️ Lower vacancy rates (1.1% vs. 2.3-2.7%)
Are rooming houses legal in Queensland?
✅ Yes! Well-designed rooming houses in residential zones are fully legal and help address rental shortages. They are classified as class 1B dwelling and do not require DA approval. Instead they are privately certified.
What are the risks of investing in rooming houses?
➡️ Regulatory changes (zoning laws)
➡️ Tenant management (requires experienced property managers)
➡️ Market fluctuations (mitigated by low supply and high demand)
How do I get started?
✅ Research high-yield suburbs
✅ Ensure compliance with local regulations
✅ Partner with trusted firms like High Yield Property Club for a hassle-free investment process
The High Yield Property Club’s rooming house strategy is shaping the future of affordable smarter smaller homes —offering sustainable, profitable, and socially responsible investment opportunities for forward-thinking investors.
For more information:
Download the High Yield Property Club’s Premium Affordable Housing Strategy Document
➡️ https://highyieldpropertyclub.com.au/strategy-document/
Watch the Masterclass
➡️ https://highyieldpropertyclub.com.au/rooming-house-video-masterclass/
Attend A Live In Person Rooming House Tour
➡️ https://highyieldpropertyclub.com.au/property-investment-brisbane-rooming-houses-tour/
Book a Complimentary, Obligation Free 2025 Portfolio Accelerator Strategy Session