Australia’s housing affordability crisis has deepened in recent years, making it increasingly difficult for both renters and homeowners. A recent report found that housing affordability “deteriorated significantly for mortgage holders” due to rising interest rates. Since 2020, rents have surged by 35%, including an 8% increase in 2023 alone. With vacancy rates at a low 1.6%, securing a rental property has become a major challenge.

Adding to the crisis, the supply of new housing remains insufficient. Only 172,000 dwellings were completed in 2023—the lowest annual number in the past decade. Meanwhile, house prices have continued to climb. Over the decade leading to 2024, the median transfer price for established houses in capital cities rose sharply. In Sydney, for example, the median house price nearly doubled from approximately $615,000 in early 2013 to around $1.3 million by the end of 2023. Other cities saw similar trends, with Canberra reaching a median house price of $980,000 and Melbourne at $840,000.

As housing costs soar, many Australians are struggling to find affordable living options. In response to this growing crisis, co-living has emerged as an innovative and viable solution. Neil Gibb, Founder and CEO of The HMO Property Co and The Coliving Collective, is at the forefront of this transformation. Together with his wife Johanna Gibb, and their business partner Troy Felt, he has pioneered property investment strategies that not only address housing shortages but also create financial opportunities for investors. By leveraging co-living models, Gibb is helping to redefine shared housing in Australia, offering an affordable and community-driven alternative to traditional renting and homeownership.

Neil Gibb’s Background and Entry into Property Investment

Originally from Middlesbrough, UK, Neil Gibb moved to Australia in 2010 with no prior connections in the real estate industry. Driven by a desire to build financial security, he immersed himself in property investment, attending real estate seminars and making personal investments. Through this journey, he identified the potential of Houses of Multiple Occupants (HMO)—a strategy that transforms single properties into multi-tenant accommodations, maximizing rental yields while addressing housing shortages.

By 2014, Gibb had begun investing in HMO-style properties, and his success in this sector led to the establishment of a property management company in 2017. He founded the company to manage his growing portfolio, as no other property manager was willing to take on HMOs. This venture laid the foundation for his larger mission: to provide affordable housing while helping investors achieve financial independence. His efforts have since housed over 1,000 people and enabled more than 250 investors to achieve an average return of 12%—a testament to the growing viability of co-living as an investment model.

As Australia faces a worsening housing affordability crisis, co-living has emerged as a scalable solution. Offering tenants private rooms with shared communal spaces, it reduces living costs compared to traditional rentals while fostering a sense of community. However, despite its advantages, co-living presents challenges, including regulatory hurdles, tenant compatibility, and long-term sustainability. Yet, with increasing interest from government bodies, developers, and investors, the model is gaining traction—and innovators like Gibb are at the forefront of its evolution.

The HMO Property Co’s Impact on the Australian Property Market

Building on this momentum, The HMO Property Co has played a pivotal role in redefining shared housing in Australia. The company focuses on optimizing space utilization, enhancing tenant experiences, and ensuring sustainable financial returns for investors. With around 170 properties currently under construction, including flagship projects in Bayswater, Perth, The HMO Property Co is expanding its footprint and reshaping the rental market.

A key element of the company’s strategy is converting underutilized commercial properties into residential units, further increasing affordable housing options. This innovative approach not only addresses supply shortages but also opens new avenues for investors seeking high-yield opportunities in a growing sector.

Overcoming Challenges in the Co-Living Investment Space

Despite its success today, co-living was not always a recognized investment avenue in Australia. When Gibb first entered the sector in 2014, financial institutions did not consider HMO properties as viable investments, making it nearly impossible to secure financing. To navigate this challenge, Gibb and his team acquired large properties through standard bank loans and repurposed them into co-living spaces. This strategy significantly increased rental income while simultaneously providing much-needed affordable housing.

Regulatory challenges also posed obstacles. Many local councils were unfamiliar with the co-living model, resulting in skepticism and delays in permit approvals. Gibb took an active role in educating regulatory bodies about the benefits of co-living, ultimately paving the way for greater acceptance.

A major breakthrough came in 2021, when a new lender recognized co-living properties as legitimate assets, enabling investors to secure 80–90% financing. This shift transformed co-living into a more accessible and scalable investment option, further validating its role in addressing Australia’s housing crisis.

Core Values and Business Ethics

The HMO Property Co and Neil Gibb operate with a strong set of core values that shape their business practices and drive their success. Leadership is at the heart of their approach, fostering a culture of mentorship and open communication to empower both team members and investors. They also emphasize gratitude, recognizing and celebrating achievements while maintaining humility and a commitment to continuous growth.

A key pillar of their philosophy is ownership, ensuring that every project is approached with accountability and a dedication to delivering excellence. Additionally, they value mastery, striving for constant innovation and improvement in investment strategies to adapt to an evolving market.

By upholding these principles, The HMO Property Co ensures that its business model remains sustainable, ethical, and beneficial to both investors and tenants, creating long-term value for all stakeholders.

Growth Prospects and Emerging Market Trends

Currently operating in Western Australia, The HMO Property Co plans to expand into Melbourne, recognizing its potential as the next key market. Their expertise in high-yield property investments positions them well to capitalize on new opportunities in the region.

Furthermore, their engagement in social enterprises like Armed for Life – run by Adam Prytzula underscores their dedication to making a positive community impact. Through financial contributions and active board participation, Gibb supports initiatives focused on strengthening resilience and promoting healthy relationships among young people.

The HMO Property Co’s property management division has earned widespread recognition, securing the Innovation Award at the REIWA Awards for Excellence for three consecutive years. The company sets itself apart by providing a fully integrated property investment service, encompassing everything from financing and site selection to construction and ongoing management.

Neil Gibb and The HMO Property Co are at the forefront of transforming co-living in Australia. By overcoming financial and regulatory barriers, they have created a sustainable investment model that benefits both investors and tenants. Their expansion into new markets and continued innovation ensure that their impact on the housing sector will continue to grow, providing affordable, community-focused housing while helping investors achieve financial independence.

Published by Drake M.