Hobart’s true cost of rent squeeze

The explosion in short-term accommodation had been a profitable exercise for some, but at what cost?

THE first set of property data for 2020 shows rents in Hobart are continuing to soar, prompting a call from within the Government’s own ranks to address the rise of Airbnb.

Outspoken Liberal MP Sue Hickey says it is time to “take a breath” on the short-term accommodation juggernaut because it was causing Tasmanians to suffer rental stress and homelessness.

While the explosion in short-term accommodation had been a profitable exercise for some, she said it had been at “the expense of our citizens”.

The call comes as many university students spend January looking for houses or units, and new government figures show those waiting for government housing are at a record high of 3444 households.

Meanwhile, the latest SQM Research data shows Hobart house rents have risen 3.4 per cent in January. Hobart reported the highest rise in the nation and bucked a national trend which saw rents slip by 0.2 per cent.

In the past three months Hobart house rents rose by 6.5 per cent, eclipsing the national average of 1.4 per cent.

The average rent for a house in Hobart is now $468 per week, compared with $421 a year ago and $364 three years ago.

Speaker Sue Hickey. Final day of the Tasmanian parliament for 2019. Picture: NIKKI DAVIS-JONES

Ms Hickey said the Government was taking steps to create affordable and social housing, but more urgent action was needed because accommodation could not be made fast enough to deal with the rental crisis.

The Tasmanian Speaker of the House of Assembly said rents were rising partly in response to the lack of supply of long-term rentals because they had been converted into Airbnb accommodation.

“I’m not saying ban Airbnb, but we need to take a deep breath and pause and reconsider,” she said.

Ms Hickey (pictured) said her concerns were not aimed at those who rented out rooms in homes they lived in, which she encouraged.

“I’m concerned about whole houses that have been turned over to Airbnb and families kicked out.

“I come from the private sector and understand that people should be able to make a profit, but clearly this is at the expense of our citizens,” she said.

Housing expert Kathleen Flanagan agreed greater legislation of the short-term accommodation market was needed.

“We are regulating around the edges but we need to be more specific,” said Dr Flanagan, who is deputy director of the Housing and Community and Research Unit at the University of Tasmania.

“The weight of the evidence is that clearly it is having an impact of rental supply. We need to focus on the needs of residents versus the needs of tourists.”

RELATED: ACCOMMODATION CRUNCH OVER NEW YEAR

The unit estimates “conservatively” that 667 residential dwellings across greater Hobart have been switched over to Airbnb or other short-stay accommodation use since 2016 - 400 of which are in Hobart municipality.

Airbnb’s head of public policy for Australia, Derek Nolan, said the causes of housing affordability issues in Hobart are “complex and many”, including population growth and an inadequate housing supply pipeline.

“The fact is ‘entire home listings’ on Airbnb booked for more than six months of the year comprise just 0.25 per cent of Hobart’s housing market,’’ he said.

“At the same time, Airbnb plays a crucial role in Tasmania’s vital visitor economy and further restrictions on short-stay accommodation would only serve to damage local jobs without improving rental affordability.

“We’re focused on working with the Tasmanian Government to support the newly introduced short-term letting regulations which we believe strike the right balance. These laws are helping Hobart to grow tourism and local jobs.”

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Tenants Union of Tasmania senior solicitor Ben Bartl said change was needed urgently.

“It’s unsustainable to expect tenants to pay 30 per cent higher rent than three years ago,” he said.

Controls he would like to see include: a tax on empty homes, aligning rent increases with CPI or some other more realistic measure and tighter controls of Airbnb.

The latest Communities Tasmania dashboard for the September 2019 quarter released on Friday shows there are 3444 applications on the government housing register, up from 3301 a year before.

Housing Minister Roger Jaensch said the number of households assisted through Private Rental Assistance increased from 155 in June to 196 in September.

“The [Government] is acting to address continuing housing market pressure by investing over $80 million in the 2019-20 financial year to increase the supply of social and affordable housing under our $258 million Affordable Housing Strategy.”

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