Research into impact of Airbnb-style rentals hopes to help tackle growing housing crisis

A government review of short-term rentals such as Airbnb and Stayz hopes to shed some light on the growing housing crisis – but it’s leaving some Cairns hosts with questions about the future.

A STATE government investigation into short-term rentals hopes to shed some light on housing pressures, but locals in the industry fear government overreach could hurt tourism and would do little to help the Far North’s rental crisis.

Speaking in Cairns on Tuesday morning, Deputy Premier and Planning Minister Steven Miles said concerns had been raised the number of properties placed on short-term rental sites such as Airbnb and Stayz was worsening the current tight rental market.

“The current rental market is very tight in many areas across Queensland. People are seeing their rent increased or are struggling to find an available rental near their work or kids’ school,” Mr Miles said.

“We don’t have a clear picture of the impact short-term rental properties are having on the rental market.

Queensland Deputy Leader Steven Miles said the government was exploring all options to increase supply of long-term rentals. NewsWire / Sarah Marshall

“That’s why we’re announcing we will commission a body of research to understand the impact properties placed on short-term rental sites such as Airbnb and Stayz has on the market.

“So much of what we know at the moment is anecdotal. Some people say it’s having a massive impact, some people say it has very little impact. So let’s get to the bottom of that before we can consider what appropriate responses might be,” he said.

Cairns couple Nick and Lizzie Marshall opened Cairns Holiday Homes in 2005, a holiday-home listing service similar to Airbnb.

Mr Marshall said he understood the need for more research into the industry, but was wary of too much regulation.

“They should remember this is a very important business with a very big footprint in the tourist industry,” he said.

“We’d be in serious trouble if they made it too difficult for people to do short term rentals.”

Mr Marshall did not expect the findings to show a significant impact of short-term letting on the housing market.

Nick Marshall, co-owner of Cairns Holiday Homes, feared over regulation of short-term stays would harm the tourism industry. Picture: Supplied

“There’s no question that it’s probably had some impact, but if you go to Airbnb and look at what’s being listed there are very few places that would be suitable for people looking for cheap rentals … we really need to be building more houses,” he said.

Cairns hit a record low vacancy rate of just 0.5 per cent last month, according to SQM Research.

Recent estimates put the number of active Airbnb or Stayz listings in the region at over 2000, or around 3 per cent of Cairns housing stock.

While most short-term holiday rental businesses like hotels, caravan parks and bed and breakfasts must be registered and pay annual council fees, private Airbnb-style renters have so far dodged those costs in Queensland.

Airbnb welcomed the government’s review, saying it supported regulation that was balanced and sustainable for both industry and communities. Picture: Airbnb.

Airbnb welcomed the government’s review, saying it supported regulation that was balanced and sustainable for both industry and communities.

“We welcome this holistic review of short-term rental accommodation in Queensland, including the contribution the industry makes to the state’s critically important tourism sector and broader economy,” Airbnb country manager for Australia and New Zealand Susan Wheeldon said.

Ms Wheeldon pointed to hosts increasingly relying on Airbnb to make ends meet.

“We’re also 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,” she said.

Airbnb Australia and New Zealand boss Susan Wheeldon welcomed the Queensland Government research into short-term rentals. Source: Supplied.

Mr Miles said he was not suggesting homeowners should be prevented from short-term letting, but the government was investigating all avenues that may result in more properties being available for longer term rental.

“We are listening to the community, industry, councils and other stakeholders, who have raised these concerns on both sides,” Mr Miles said.

Measures regulating Airbnb-style stays have already been implemented by some state governments: Tasmania introduced a permit system to limit short-term rental stock, Victoria has rules governing noise and behaviour, and New South Wales introduced regulations last year prohibiting owners in greater Sydney from subletting more than 180 days of the year.

Cairns Regional Council plans to increase rates for investment properties not used as a principal place of residence from mid-2023 – a move that would also hit homes rented to holiday-makers.

The research into the short-term rental accommodation market is expected by the end of the year.

Originally published as Research into impact of Airbnb-style rentals hopes to help tackle growing housing crisis