Short-term Rentals: Not the Villain in Australia’s Housing Crisis, Says Airbnb Australia Boss
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In a recent discussion on Australia’s deepening housing crisis, Airbnb Australia’s head Susan Wheeldon insists that restricting short-term rentals like Airbnb will not solve the issue. Despite the surge in property prices pushing the average mortgage in Australia to an all-time high of over $636,000, Wheeldon highlighted the minor role that short-term rentals play in the overall housing market.
According to Jessica Page’s article, rental prices have risen sharply, with the median price for a house in Australia’s capitals now at $650, up 11.1% from last year. With vacancy rates under 2%, tenants find themselves in a tough landlords’ market. Reports from Domain suggest that to achieve a balanced market, Australia would need tens of thousands of additional rental properties.
Amidst these statistics, state governments have targeted the lucrative short-stay market as a potential solution. However, Wheeldon argues that short-term rentals constitute only a small fraction of the housing stock. She cites a report showing that “up to 30 per cent of hosts primarily use the income generated to make ends meet.”
The debate is particularly intense in tourist hotspots like Byron Bay, where the local council has imposed a 60-day annual limit on short-term rentals. Byron Shire Mayor Michael Lyon emphasizes the necessity of these measures, stating, “It’s absolutely essential that we protect residential areas for residential uses.”
Yet, Wheeldon warns of significant economic repercussions, particularly concerning employment. “You’ve taken a 10-month opportunity and changed it into two, and that’s gonna have a really serious impact on employment,” she told Jessica Page.
Further, Western Australia and Victoria are experimenting with incentives and levies to encourage conversion of short-stay properties into long-term rentals. Despite these initiatives, Wheeldon advocates for a global benchmark levy of 3 to 5 percent, compared to Victoria’s 7.5 percent.
In an effort to balance tourist needs with local housing affordability, Airbnb has introduced the City Portal, which offers local councils insights into rental trends, although the data remains exclusive to government officials.
The consensus among stakeholders seems to be a call for mandatory registration of short-stay properties to ensure a more controlled and transparent market. Wheeldon and other industry leaders believe this could lead to a more equitable distribution of housing without sacrificing the economic benefits of tourism.
As this debate unfolds, the future of Australia’s housing market continues to hang in the balance, caught between the needs of residents and the economic allure of short-term rentals.
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