Multiple short term accommodation applications for Launceston council

A steady rise in short term accommodations in Tasmania may be impacting the strain on housing, but one councillor says they have their place for now.

Short term stays increasing in Launceston.

Short term stays have become a risk and a necessity in Launceston.

A lack of housing and low vacancy rate for long term rentals results in some people staying in Airbnbs for months on end, says City of Launceston councillor, Alan Harris.

“I know people who have moved here and they’re in an Airbnb for three, 400 bucks a week for six months,” Mr Harris said.

Launceston has a higher rate of renters than the rest of the state, rent had increased to a weekly average of $470 and the vacancy rate was under 1 per cent.

Recently, some development applications for short stay properties have come to the City of Launceston council.

While not a huge amount, it is a part of an increasing trend across Tasmania.

A West Launceston house looking to become a short term stay. Picture: supplied

Currently, there are three development applications for short term accommodation for Launceston municipality.

One for West Launceston, which is a request to change the use of a three-bedroom house to short term accommodation.

Another is construction of a short term building in Underwood, which would be a tiny home on a rural property.

One application is in Lilydale and for three tiny homes on a rural property.

Mr Harris said getting developments off the ground like Gorge and Franklin Hotel could ease some of the strain.

“The answer to getting more Airbnbs converted back for annual rentals is to get more hotel rooms available in the Launceston market,” he said.

Back in 2023, the council looked into the impact of short term accommodation in the area.

Whole house or apartment short stay accommodation accounts for less than 1 per cent of all dwellings and around 3.1 per cent of all rented dwellings, and had over 500 short term accommodation properties reported at the time.

While demand was the biggest impact, it was also noted should short term accommodation increase too much, it could impact the local rental market.

In Launceston for the first quarter of 2024 there were 441 short term accommodation which were not the owners primary residence and 370 which comprised all or part of a primary residence, totalling 811 short term accommodation listings.

Since the last quarter in 2020, the amount of short term accommodation properties has risen in Tasmania with Hobart, Glamorgan Bay and Launceston having the highest concentration of short stays.

Mr Harris said he wanted to see more rules in place for what properties are short term stays.

“From my perspective, I’d like to see more controls the short term rentals to be closer to the CBD in a city, rather than in the suburbs,” he said.

In 2025, the Launceston housing plan, which covers the next 15 years of residential growth and housing, showed Launceston’s current population of 71,788 needs 1500 new dwellings now to house the current population with growth averaging 500 new residents per year.

The official document showed dwelling approvals were “in decline” compared to neighbouring areas like West Tamar and Meander Valley.

Originally published as Multiple short term accommodation applications for Launceston council