Targeting Airbnb is missing mark
To fix housing, we must cater to tourism and student booms and address the planning minefield, writes Tony Collidge
I QUESTION the wisdom of those who appear to be going out of their way to point the finger at the emergence of Airbnb as a major catalyst for our housing crisis.
It would help if you took the time to discover how and why Airbnb has evolved and grown so quickly in Tasmania. Whilst it does provide favourable returns for those landlords involved, it also plays a very important role in adding valuable dollars and employment into our local economy.
On Friday the Hobart City Council held a “roundtable discussion” on how it could help provide relief in Hobart’s housing crisis. Richard Eccleston and his team from the University of Tasmania presented an interesting and broad range of statistics on the state of the property market. I was led to believe the rapid growth of Airbnb, a growing population, strengthening economy and a shortage of builders, were the main contributors for our inability to provide enough housing.
One possibly needs to dig a little deeper. Dr Eccleston was correct with all his assumptions however, I beg to explore a little broader.
I was surprised no mention was made of the impact of tourism, and the university’s rapid growth of international and interstate student numbers moving here to study. Both these have been major contributors to the housing crisis by absorbing a considerable amount of our housing supply over the past three years. They have been invaluable contributors to our economy and provided wonderful benefits to our state but at a cost.
From 2014 to 2017 tourists numbers coming to Tasmania have increased by more than 200,000 a year or approximately 3800 a week. In 2014 I attended a Tourism Tasmania seminar at which we were advised that from October to April our tourism industry needed 700 more beds (per day) to cope with demand. Today this has probably grown to between 2000 and 3000. Just ask anyone who wants to come here around Christmas time or early in the new year. Airbnb has grown to fill this shortage. By catering for this need it helps the state to attract a further $200,000,000 into our economy. It means jobs and growth.
The University of Tasmania seems reluctant to provide statistics on the number of intrastate, interstate and international students it attracts to Hobart each year. In 2015 the university announced it intended to double its number of students including international attendees. As with our tourism market, I suspect these numbers have grown significantly, placing even more burden on our already strained rental market. Many students have and some still are finding it very difficult to find accommodation. Despite requests for the number enrolled this information has not been made available. In 2016, the ABC reported there were 5220 international students. The provision of education has become one of our biggest industries, contributing hundreds of millions of dollars to our state as well. The potential of this sector can impact the whole state.
People buying property for investment have every right to decide how their money can be invested and managed. In time, new accommodation coming online will ensure a market correction.
Government (particularly local) has failed to realise or accept its role in the creation of this “crisis”. The governance and administration of matters surrounding the housing/ rental sector are also worth considering as contributors to the shortage of rental stock. Hobart alderman Marti Zucco raised two significant deterrents: the existing Residential Tenancy Act which heavily favours tenants and today has swayed some landlords to move from long term rental to short stay accommodation after bad experiences with long term tenants; and the old and Interim Planning Schemes and Building Codes which are all inhibitive and do no more than create jobs for bureaucrats to sit in their offices and spend all day interpreting ... what? The mess they have created. I only hope the new Planning Scheme provides opportunity, flexibility, simplicity and certainty for investors.
Add to the above the Local Government Act, through which councils take either 5 per cent of the land to use for public open space or demand funds of equivalent value of the land, and then you have headworks costs (which the Hodgman Government is currently waiving). That’s without even mentioning the fees, the incentives some councils demand in order for development approvals to be granted. There are some good councils and then there are others with alderpeople (men and women) so caught up in their own self-importance they have lost all focus on what they are there to do.
At the roundtable meeting it was mentioned that Hobart City Council has 5000 planning approvals in place and approvals for five new hotels which will almost double the number of hotel accommodation rooms in Hobart. Why did we have to wait until now for this to happen? You can be assured that of the 5000 planning approvals in place only half (if that) will navigate their way through the building approval minefield that awaits them. The planning scheme is a real issue and an inhibitor to development in this state. It needs addressing.
Most of the housing crisis issues revolve around affordable public housing. This is an issue shared by almost every state. The funding to address this is controlled and provided from Canberra. I
suggest it’s about time the likes of senators Eric Abetz and Nick McKim and MP Julie Collins and co got on their bikes and did more to secure the funding needed for this state to properly address this matter. Like many I am tired of hearing rhetoric. It’s time for action!
I applaud the commitment our new Housing Minister Roger Jaensch and the effort he is making. There is no quick fix or shortcut solutions. It will take a well planned, thoroughly researched approach to clear the obstacles and develop a pathway.
We need local, state and federal governments to be proactive and supportive of development. We need open minds, courage and a willingness to compromise. The last thing we need is closed minds, surrounded by regulation. So let’s look past the Airbnb scapegoat and keep an open mind for opportunities that may avail themselves.