Short-term rentals play an essential role in state’s economy

Airbnb works with governments around the nation and we see the best results at a local level are achieved when government decision-makers engage with industry and work with us, writes Susan Wheeldon

ONE of the most complex and challenging issues facing governments around many parts of the world right now is that of housing affordability.

It’s something that impacts the lives of everyday people in a very real way, yet is incredibly difficult to address because its main driving factors often include population movements, the need to rapidly boost the supply of new homes, and bigger economic factors such as interest rates.

Much has been made in recent months following the Hobart City Council’s decision to significantly restrict shortterm rental accommodation, as if it were the silver bullet that might solve the city’s housing affordability problems.

The reality is that there are no quick fixes – this is a notoriously complex issue and any approach needs to take the full picture into account.

Unfortunately, the council’s current proposal will fail to address the most significant underlying causes of housing affordability and supply.

The fact is that short-term rentals such as Airbnbs make up a tiny portion of housing in Hobart.

In contrast, empty homes and rooms are far more prevalent, along with the fact that the City of Hobart’s population is growing faster than the number of new homes being built by a ratio of almost two to one.

It’s also true that council’s own processes are actively making it harder to increase local supply and accommodate this growing population.

The reality is that nonprimary homes with shortterm rental permits represent less than 1 per cent of housing in Greater Hobart.

At the same time, Census data released a fortnight ago shows that Tasmania ranks second in the nation for unoccupied dwellings, with more than one in 10 houses lying empty. Filling just a fraction of those with tenants would make a tangible difference and go a long way towards alleviating housing pressures experienced across the state.

The Tasmanian government acknowledged one of the greatest underlying challenges when it said that “the only way to address rising house and rental prices is to increase supply”, when recently announcing a package to provide more affordable homes.

Instead of focusing on sensible, long-term solutions that could make a real difference to the current housing affordability issue, council instead seems determined to push ahead with a proposal that would fail to address the problem while also damaging the local economy.

In fact, council’s own consultation shows that just 48 people who made submissions were in favour of the ban, compared with 70 against.

Given council’s proposal will stop new short-stay permits, not existing ones, this is unlikely to add a single property to the rental market.

By creating an exclusive market of properties with permits, it will perversely create two classes of homes in Hobart, all but guaranteeing that few existing short-stay accommodation properties

will voluntarily convert back to long-term rentals.

Airbnb was born during the global financial crisis to help families afford their homes and make ends meet, and we remain committed to empowering everyday people to combat costs of living.

Housing is a really difficult issue not just for people and communities, but also for governments looking to genuinely tackle this policy challenge.

It’s a complex issue with a range of contributing factors such as population movements, the supply of new homes, the number of empty dwellings and rooms, the ratio of public housing, interest rates, and broader economic conditions.

Indeed, we’re seeing the effects of increasing housing pressures on our platform, with more people turning to hosting as a way to battle rising costs of living and growing mortgage repayments.

It’s no surprise that people increasingly rely on hosting to make ends meet in the face of the current economic climate.

In a survey* last year, more than a third of Australian hosts said one of the reasons they host is to earn money to help cover the rising cost of living, while almost four in 10 said that hosting income has helped them stay in their home.

Short-term rentals also play an incredibly important role in growing Tasmania’s economy and creating jobs for locals – and we want to keep working together with local communities on this front.

Airbnb works with governments around Australia and around the world. We see that the best results at a local level are achieved when government decision-makers engage with industry in good faith and work with us towards common goals.

We’re always looking for new ways to make travel a positive experience for guests, hosts and communities. An example of this is the fact that we last week officially codified our previously temporary ban on parties.

Airbnb is keen to play a part in helping to provide meaningful solutions and tackle this issue in Hobart, but it is also important council focuses on the real drivers of this very complex issue.

Susan Wheeldon is the country manager for Airbnb in Australia and New Zealand.

Based on a survey of 2578 Airbnb listings booked between June 1, 2021, and December 31, 2021, in Australia. All additional hostcentric survey data in this report originates from this survey.