Airbnb boom in Tasmania sparks affordable housing distress

TASMANIAN housing services want the Airbnb-effect to be factored in to affordable housing and planning policies, as more long-term rentals turn into short-term holiday accommodation.

More homes in Hobart are being used for Airbnb rental offerings, instead of affordable housing.

TASMANIAN housing services want the Airbnb effect to be factored in to affordable housing and planning policies, as more long-term rentals are turned into short-term holiday accommodation.

A looming rental crisis has been identified in Hobart, with housing support services and real estate agents identifying a major shortage of residential rentals.

Anglicare’s Rental Affordability Snapshot for 2017, released last week, shows the availability of rental properties in Tasmania is in sharp decline — most dramatically in the the state’s.

The South had only 512 properties advertised for rent this year compared with 1304 in 2013 — a decline of 61 per cent over four years.

Real estate agents are reporting unprecedented competition for rentals in Hobart, with properties attracting high numbers of applications and being leased within days.

Hobart’s tourism boom and a shortage of hotel rooms has made letting properties for short-term holiday accommodation a lucrative enterprise.

A snapshot of short-term versus long-term rentals in Hobart shows that there are 306 properties including 260 entire homes available on Airbnb this weekend.

There are 123 properties listed on Stayz, although some properties are listed on both sites. In comparison, there are 90 long-term rental properties currently available in Hobart, West Hobart, North Hobart, South Hobart and Battery Point on realestate.com

The Minister for Human Services, Jacquie Petrusma.

The Mercury identified a several homes in Hobart that had been converted from long-term rentals into short term accommodation via Airbnb or Stayz. In each case, the owner stood to make at least the same amount of money in two or three nights on Airbnb as they would in weekly rent.

Shelter Tasmania executive officer Pattie Chugg said while there were many factors involved in the current Hobart rental squeeze, short-term holiday rentals played a role.

The State Government have made a decision around supporting the sharing economy, but the flip side is who is missing out because of these changes?

“I think it’s definitely having an impact on the private rental market. We have asked our members about that and we think it’s particularly impacting in the South,” she said.

“We also know the State Government have made a decision around supporting the sharing economy, but the flip side is who is missing out because of these changes?”

Ms Chugg said the sharing economy should be considered as part of future affordable housing policy.

”We are very much aware it is a big issue in other countries. There are laws in San Francisco, and New York and Berlin are looking at laws around long term rentals,” she said.

For a lot of Tasmanians, the opportunity to list the home in which they live on Airbnb ... makes a real difference paying off the mortgage, electricity bills and other daily expenses

Airbnb Australia country manager Sam McDonagh said Tasmanians renting out their primary residence from time to time to holiday makers were making an average of $6900 a year.

Mr McDonagh would not be drawn on how many Airbnb hosts had formerly rented out properties as long term rentals before turning to Airbnb

“For a lot of Tasmanians, the opportunity to list the home in which they live on Airbnb ... makes a real difference paying off the mortgage, electricity bills and other daily expenses,” he said.

“Airbnb hosts in Tasmania are everyday people — mums and dads, seniors and young families — who occasionally share their primary residence to travellers from around the world while they themselves are on holiday or out of town.

“The vast majority of Tasmanian listings are outside traditional hotel districts, so our guests live like a local, spending money at cafes, shops and restaurants not normally visited by tourists.”

Airbnb says 169,000 people stayed in Airbnb properties in Tasmania in the year to January, with guests spending an estimated $58.7 million in Hobart in 2015-16.

The State Government’s policy on sharing economy accommodation platforms has become increasingly open over time.

The initial proposal was to allow a person to rent out a property for short-term accommodation without a permit for 42 nights per year.

However, backlash from Airbnb and Tasmanian hosts, who made representations to the Tasmanian Planning Commission, contributed to the policy being relaxed.

A significant increase in nights was then flagged by Premier Will Hodgman in September last year, before a final unlimited position was announced in February.

Human Services Minister Jacquie Petrusma would not be drawn on what impact the rise of private holiday rentals may be having on affordable housing in Tasmania.

Ms Petrusma instead outlined n the government’s affordable housing initiatives

“The Hodgman Liberal Government’s $73.5 million Affordable Housing Action Plan demonstrates our strong commitment to helping more Tasmanians in need into housing,” Ms Petrusma said.

“This plan will result in around 900 extra affordable homes, as well as fund a range of rental supports such as landlord incentives which will provide housing for 1600 vulnerable Tasmanian households.

“We are continually rolling out initiatives under our plan, with building underway on a range of projects.”

Tasmania’s public housing waiting list has continued to climb, with 3845 applicants waiting for homes at December 2016.