Could Airbnb regulation help ease the rental crunch in Cairns? Councillors respond

Cairns Regional Council is keeping a keen eye on a southern council’s move to regulate Airbnbs as councillors look for ways to ease the rental crunch in the Far North. Read what councillors think of the idea.

Cairns Regional Council is keeping a keen eye on a southern council’s move to regulate Airbnbs as councillors look for ways to ease the rental crunch in the Far North.

Councillors have shared their thoughts on recently implemented Airbnb regulation by Noosa Shire Council, which has coincided with an easing of rental vacancy rates in the popular seaside tourist region, and whether it could work in Cairns to ease the rental crisis.

Data from the Real Estate Institute of Queensland (REIQ) for the last quarter has starkly highlighted the current rental crisis in Cairns showing rental vacancy rates at an extremely tight 0.7 per cent.

But over the same period, Noosa Shire Council has almost doubled its vacancy rate from 1.2 per cent to 2.3 per cent.

The jump has coincided with recent regulations placed on to Airbnb and other short stay rentals which may have led homeowners back to the long term rental market instead.

The Cairns Post reached out to councillors from Cairns Regional Council to ask if similar levers could be pulled in Cairns to help ease rental pressures.

Councillor Brett Olds said he would like to learn more about what Noosa has done and that Council should always be looking into opportunities to ease pressures on residents.

“Our council dabbed its toe into looking at a ‘Tenant Tax’, which to me looked like it’d have the opposite effect, and wasn’t a popular idea within the community,” Cr Olds said.

Division 9 councillor Brett Olds addresses the council meeting. Picture: Isaac McCarthy

“A lot of the feedback I heard was while people didn’t want this sort of discrimination put on to all rental properties, most didn’t mind the thought of holiday lets being targeted.”

Noosa’s new local laws require short term accommodation such as properties listed with Airbnb to have council approval to operate but code of conduct changes also target the behaviour or visitors in short term holiday accommodation.

“I’m very interested to hear more and to benchmark against Noosa — and any other councils finding success in this space — as, if they’ve found a way to legislate and regulate the holiday letting market, then this is great news and we should all be trying to follow suit if appropriate for our area,” Mr Olds said.

“I’m all in to dig deeper into what Noosa has done and let’s see if we can do the same thing here and get some wins on the board for our residents.”

Short-term rental data from AirDNA marketfinder shows 1893 active short term holiday rentals in the Cairns Region.

Councillor Amy Eden was more cautious towards the idea and was wary of how it may impact tourism income for the region.

Division 5 councillor Amy Eden said there are arguments for and against the regulation of the holiday letting market. Picture: Isaac McCarthy

“It is an interesting one, with equal arguments for and against I would suggest,” Cr Eden said.

“While the idea of increasing the rating of properties used for short-term stays to bring them back into the long-term rental market may seem reasonable at first glance, it is important to approach this issue with caution.

“Our city benefits financially from visitors who stay in these properties.”

“If these properties were no longer available for short-term stays, our city would lose out on this important source of income.

Councillor Brett Moller said stable and affordable housing was the cornerstone of a healthy community.

“We understand that the rental vacancy rate in Cairns continues to be low, but this is a complex issue that requires all levels of government to play a role in finding solutions and help people find stable and affordable housing.”

Division 1 councillor Brett Moller said any regulation changes would require careful consideration. Picture: Isaac McCarthy

Deputy Mayor Terry James and Cr Moller said that while rental availability was a state and federal government responsibility, council would continue to advocate government to provide some relief on these issues.

“Any changes to regulations and approvals of Airbnb properties would require careful consideration, consultation with relevant stakeholders, and require potential amendments to local laws and the planning scheme,” they said.

“Council’s role in housing is through planning and the expedient processing of development approvals.

“Council is currently reviewing its incentives policy to assist in expediting approvals, providing infrastructure charge waivers, and providing services to connect industry participants.”

Originally published as Could Airbnb regulation help ease the rental crunch in Cairns? Councillors respond