Views mixed on Airbnb’s impact
There are mixed views on whether the burgeoning popularity of Airbnb is taking houses out of the rental property market, but there is no doubt that places to tenant are at a premium in New Plymouth.
The shortage of three-bedroom homes is a particular issue in the city, with one property manager fielding 10-12 inquiries a day from families on the hunt for somewhere to live.
Community Housing Action Taranaki spokesman Brian Eriksen, who helps with the provision of short-term emergency housing, said he had been told houses that may have been rented out before were now being used as short-term Airbnb properties.
More than 300 hosts in New Plymouth are signed up with Airbnb, which allows them to rent out properties or spare rooms on a short-term basis.
He said this trend added to the fact there are not enough houses in Taranaki available to rent, and due to the demand outstripping supply, the resulting increase in accommodation costs made it extremely difficult for some people.
"When you get 20 people going for the one rental, the person who is going to get it is the person who can most afford it,’’ Eriksen said.
Taranaki Property Investors’ Association president Richard Woodd said he imagined the number of available Airbnb options in the region was having some impact on rental property supply.
In general he acknowledged the appeal going down the Airbnb route would have for some property owners.
But not having to comply with the Residential Tenancies Act had to be balanced against the fact they don’t get a bond and have little means to vet the people who book to stay with them.
However, he said Airbnb users tended to look after the houses where they stayed.
Woodd said all landlords would have had an experience with bad tenants and having to stand the costs incurred to fix up the property after they left.
Lynne Le Roux, a Bayleys property manager, did not see the Airbnb properties as having much of an impact on the rental market in New Plymouth.
The properties in highest demand were three-bedroom, one-bathroom houses and her office was fielding between 10-12 inquiries a day from prospective tenants.
Interest for rentals were coming from people who had recently moved to New Plymouth from places like Hamilton or Auckland, she said.
She said the demand for properties had seen the weekly rental price rise over time too.
Le Roux said the current average price for a three-bedroom rental in Taranaki was between $395 to $425, and sometimes pushed up to $450 a week.
Meanwhile, Eriksen welcomed the $300 million investment announcement made earlier this month by the Government to deal with the country’s homelessness issue.
This funding boost included the construction of 1000 new transitional housing, but Eriksen said the new measures were not going to be a quick fix.
‘‘It’s still going to be about supply. They’re not going to be able to build 100 houses in a week.’’
Earlier it was revealed the Government spent almost $100m of taxpayers’ money to cover the cost of emergency housing, including motel stays, in the first nine months of 2019.