The Rental Crisis in Australia: Urging Airbnb and Holiday Home Owners to Let Properties Out to Long-Term Renters

The rental crisis in Australia has been a growing concern, especially since the COVID-19 pandemic hit the country in 2020. A report by the Australian Housing and Urban Research Institute (AHURI) revealed that rental affordability has worsened in Australia's major cities, with rental stress affecting low-income households.

One of the causes of this crisis is the rise of short-term rentals, such as Airbnb and holiday homes. While these platforms have provided many homeowners with a lucrative source of income, they have also contributed to the shortage of long-term rental properties.

Short-term rentals in Australia: a call for change

As the rental crisis worsens, housing advocates are urging Airbnb and holiday home owners to consider letting their properties out to long-term renters. The Australian government is also looking at ways to address the issue, including implementing tighter regulations for short-term rentals.

According to AHURI, short-term rentals can have a significant impact on the availability and affordability of long-term rental properties. The report suggests that local councils and state governments should consider introducing policies that encourage property owners to offer their homes for long-term rentals.

Several councils, including Hepburn, Alpine Shire, East Gippsland Shire, and Bega Valley, have sent letters to their ratepayers with mixed results. Eurobodalla, located in New South Wales, has also appealed to ratepayers who own a second home in the shire to consider renting it out, citing the success of over 80 homes being placed on the rental market following the 2019-20 bushfires.

The mayor of Noosa, Kim Rawlings, issued a plea for action after witnessing the median weekly rent surge to $700 in the December 2022 quarter, a significant increase from $490 in December 2019.

The Benefits of switching into Long-Term Rentals in Australia

Renting out properties for long-term tenants can provide several benefits to both property owners and tenants. Long-term renters offer stability to landlords, as they can rely on steady rental income for an extended period. This arrangement also provides tenants with a secure home, allowing them to settle into their community and develop a sense of belonging.

Moreover, long-term rentals can help ease the rental crisis by increasing the availability of affordable housing for those who need it the most. It can also help reduce the risk of homelessness, which is a significant concern in Australia.

Are You a Host? Here’s How You Can Help

If you are an Airbnb or holiday home owner, you can help address the rental crisis by considering letting your property out for long-term rentals. By doing so, you will be contributing to the availability of affordable housing for those who need it the most.

Inside Airbnb, which tracks listings to show the impact of short-term rentals on the rental market, shows there are 20,768 listings in Melbourne and 22,659 across Sydney.

Brendan Coates, economic policy program director at Grattan Institute, said in the short term, Australia cannot build itself “out of the housing squeeze” which is set to worsen as migration increases.

But Hayden Groves, the president of Real Estate Institute of Australia, said if the example in Eurobodalla shire were mirrored in every council, it could release 42,000 dwellings:

“If we make a nationwide effort, that could release as many as 42,000 new rental listings into the market across the country ahead of winter, averaged out across our 537 local governments across Australia.”