Zoe Henderson and Sophie Macaulay have been living on a boat at Wellington's Chaffers Marina.

With available rental properties in short supply and house prices continuing to soar, some Wellingtonians are resorting to living on boats or forming communes in an effort to live affordably.

Friends Zoe Henderson and Sophie Macaulay have been living on a boat in Chaffers Marina for the past six months.

"Mostly it was because a friend and I needed a place to live at mid-year, and there is a lot of competition for small apartments in town, so it was out of necessity more than anything else," Henderson said.

CAMERON BURNELL/FAIRFAX NZ "It's like living in a crap Newtown or Berhampore flat, but it's in town and it's awesome," Henderson, right, said.

Necessity may have prompted the move, but the two soon found the 14-metre yacht to be an excellent alternative to a flat.

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With a monthly mooring fee of about $700, and expenses of about $50 a week, it was also a comparatively cheap one.

CAMERON BURNELL/FAIRFAX NZ Henderson, left, and Macaulay have spent six months on the boat, which is owned by Henderson's family.

"It's like living in a crap Newtown or Berhampore flat, but it's in town and it's awesome," Henderson said.

"There are things that are inconvenient about it, but it's fun. There's 30-ish people living aboard at Chaffers Marina. There's lots of people around and they are really friendly."

Some of the drawbacks of living on a 30-year-old steel-hulled boat is that it acts as a Faraday cage, blocking all electrical signals, meaning no wi-fi.

CAMERON BURNELL/FAIRFAX NZ The pair, who are about to move back to dry land, say there were inconveniences, such as no wi-fi, but life in the marina was fun.

"The fridge doesn't work very well, that makes life a little bit difficult," Henderson said.

The vessel is owned by her family, and while the boaties may suffer a bit of scorn from their well-heeled neighbours, Henderson said the benefits outweighed any drawbacks.

"The Clyde Quay Wharf Apartments are quite flash. To buy one is, like, over $1 million and the people who live there call the people who live on the boats 'trailer trash'.

CAMERON BURNELL/FAIRFAX NZ With a monthly mooring fee of about $700, and expenses of about $50 a week, the boat was comparatively cheap, Macaulay and Henderson said.

"I wouldn't want to say anything rude to them, but we all live lovely lives on the boats."

The pair have even seen a romance unfold between two neighbours, who have recently left their own smaller vessels to live together in a larger rented boat.

Henderson and Macauley are now poised to move back into the city, with free spaces having become available in friends' flats.

SUPPLIED Until last weekend Kiana Sadighi lived in a shared house on Oriental Bay, sleeping in a room with five others in a house of 18, and paying $80 s week for rent and expenses.

But even on dry land, there are those finding novel ways to live cheaply. Until last weekend, Kiana Sadighi lived in a shared house in Oriental Bay, sleeping in a room with five others in a house of 18 and paying $80 a week for rent and expenses.

This commune-style living arrangement was perfect for those wanting to save money, and worked well provided everyone discussed any issues, she said.

"I used to live in communities, and we lived in a shared house in Melbourne with 30 to 40 people. There was always four to six people to a room."

SUPPLIED Overall rental listings are down 61 per cent on last year, and rental prices have climbed from $533 a week to $576 on average.

Meanwhile, backpacker accommodation across Wellington is bracing for an influx of students unable to find anywhere to live.

Trek Global backpackers manager Diane Sibson said there was a feeling of desperation among students, who were forced to stay long-term until the market cooled.

"We housed what we could, but being more for the tourism industry we have more people who book in advance on their holidays. So there would be quite a few people who we weren't able to house last year."