New push to limit Airbnb permits in Hobart as data reveals the high density of short-stay properties in the capital

Hobart has one of the highest densities of Airbnb listings in the world, with experts urging the state government to put a cap on new listings in the city to ease the rental stress. HAVE YOUR SAY IN OUR POLL >>

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THE state government has ruled out capping new Airbnb permits, despite research highlighting the high density of short-stay homes in Hobart and the effects on renters.

Hobart Lord Mayor Anna Reynolds said it was no longer possible for the government to ignore the evidence that Tasmania’s lax regulations were reducing housing affordability and rental supply.

The Australian Housing and Urban Research Institute (AHURI) found Hobart’s tight rental market eased during the COVID-19 crisis as an estimated 200 short-stay properties entered the long-term rental market.

However, the city has now returned to pre-COVID-19 levels of housing stress and affordability.

According to SQM Research, Hobart’s vacancy rate rose to 1.4 per cent in August, but has since returned to 0.6 per cent, as it was in February.

HOBART’S RENTAL HOME SHORTAGE PUSHING PRICES SKYWARD

The Tasmanian government says the short-stay accommodation sector will play an important role in the state’s economic recovery from COVID-19. Picture: Lionel Bonaventure/AFP

Meanwhile, the weekly median rent for a unit in Hobart is currently $403 – after falling to $370 in August – down by just $7 a week from February levels.

By comparison, the median rent for a Melbourne unit is $384 a week and in Sydney it is $447.

Airbnb, which plans to list on the NASDAQ stock exchange this month, argues its Hobart hosts are not to blame for the city’s housing woes and that increased regulation would not “materially improve housing supply”.

But University of Sydney housing researcher Professor Peter Phibbs painted a different picture when he presented the AHURI findings to local and state government stakeholders on Friday.

Prof Phibbs said at 12 per cent, Hobart had a greater density of Airbnb listings as a proportion of the overall rental market than any other city in Australia and one of the highest densities globally.

He urged the state government to limit new short-stay permits in Hobart and other areas experiencing housing stress until the density dropped to 5 per cent, rather than allowing the growth in listings to continue unchecked.

“I’m hoping this COVID experience might shake people out of their apathy,” Prof Phibbs said.

“If you’re renting a room in your house, that’s fantastic — long may that happen. But it’s when the house is taken from the rental pool, that is the problem.”

Professor Peter Phibbs is urging the state government to limit new short-stay permits in Hobart and other areas experiencing housing stress. Picture: MATHEW FARRELL

A spokesman for Housing Minister Roger Jaensch said under Tasmania’s “nation-leading” rules, local councils could seek to amend their planning schemes to impose Airbnb caps.

But Cr Reynolds said that was a long and uncertain process.

“If your laws are creating perverse social impacts, then it’s important for the author of those laws to address those impacts, not just expect local government to fix it,” Cr Reynolds said.

“This is a state government law that the evidence shows is having a negative impact on housing affordability and availability for renters in our city.”

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Prof Phibbs said Tasmania had some of the least strict regulations around Airbnb, while many cities in Europe were tightening the reins in the face of overwhelming evidence and community outcry.

“Where regulation works best is when it is done in collaboration with Airbnb and that’s usually when the evidence is so overwhelming that they realise the game is up,” he said.