Don’t blame Airbnb for rising rents: new study

THE impact of Airbnb on the Melbourne rental housing market is minimal, an Australian-first report has revealed.

THE impact of Airbnb on the Melbourne rental housing market is minimal, an Australian-first report has revealed.

The small percentage of homes used for Airbnb, coupled with the low occupancy rates, means the overall market is largely unaffected, the report, by SGS Economics and Planning, found.

The study also showed the share accommodation network made little difference to the hotel market, and was filling a niche need.

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Airbnb properties are often leased out while the owners are on holiday.

SGS report co-author Terry Rawnsley said Melbourne’s 14,500 Airbnb listings represented just 0.5 per cent of the city’s housing stock.

“People have looked at data from Airbnb and made the assumption that those units had disappeared from the private rental market,’’ Mr Rawnsley said.

“But the reality is that a lot of people are putting their own property on the market while they were away on holidays.’’

Central Melbourne has more than 3000 Airbnb properties.

Mr Rawnsley said Airbnb was simply not financially viable as a reliable income stream because of the low occupancy rates, compared to the certainty of private rental.

“The only exception was in the City of Melbourne where there is such strong tourist demand. But it’s still a risky proposition.’’

Central Melbourne had the most listings with more than 3200 properties listed. Banyule, Boroondara, Kingston, Manningham and Wyndham had the fewest.

“The hosting rate of Airbnb listings in Sydney and Melbourne are less than 50 per cent, on average,’’ he said.

Only 27 per cent of Melbourne Airbnb listings host guests for more than 180 nights per year.

Increase in rents over the past two decades was driven by factors such population growth, interest rates and tax incentives for investors, Mr Rawnsley said.

Likewise, Airbnb appeared to have little effect on the hotel industry, co-author Laura Schmahmann said.

“Hotel accommodation occupancy rates are high, particularly in Sydney and Melbourne, which potentially suggests there is a gap in supply across the tourism accommodation market,” said Ms Schmahmann.

Airbnb’s nightly prices were often cheaper than hotels.

The average price for an overnight stay in an Airbnb home or apartment in Melbourne was $125, the study found, while a private room was $49 and $34 for a shared room.

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@IanRoyall