HOUSING AFFORDABILITY AFFECTED BY AIRBNB

Airbnb is continuing to put some pressure on the rental market and housing affordability.

This is according to RiskWise Property Research chief executive officer Doron Peleg, who said that while in some areas Airbnb could help absorb an oversupplied rental market, in other areas it had the detrimental effect of increasing house prices.

“On top of that those looking for long-term tenancy simply can’t afford to pay the same rates as those taking short-term lets while on holiday.”

He said Airbnb, the online marketplace that allows owners to rent out their homes to holiday-makers, had proved a lifeline for investors unable to find tenants in an over-supplied rental market, such as inner-city Melbourne.

However, at popular holiday destinations such as Bryon Bay it had helped force long-term tenants out of the market and increased property prices.

“In areas such as these, and particularly in beachside suburbs, we see the overall demand for properties by investors and owner-occupiers going up.

“Investors know they can use the property for Airbnb, and many put in place leasing contracts that only last 10 months, so they are vacant during summer for the holiday-makers, and this supports the demand for properties.

“So, when home buyers try to enter the market, they are faced with competition from investors which obviously drives prices up.

“And those looking for long-term leases generally aren’t keen on moving every few months due to Airbnb so then that also encourages them to buy, which again means there are more competing for properties and pushing prices up; it’s a phenomenon which we are seeing around the world.”