Key Takeaways
- Cities around the world, including Barcelona, Berlin, and New York, are banning or restricting short-term accommodations like Airbnb to free up housing stock.
- Sydney is investigating a similar ban, with an estimated 5,000 Airbnb properties in the city that could be used as homes.
- Queenstown is also facing a housing crisis, with a third of properties empty on any given night, and is seeking stronger regulation from the government.
- The New Zealand government is focused on addressing the underlying problem of housing supply, rather than just restricting short-term letting.
Introduction to the Issue
The use of short-term accommodations like Airbnb has become a contentious issue in cities around the world. From Barcelona to Berlin, and from New York to Sydney, many cities are implementing bans or restrictions on these types of rentals in an effort to free up housing stock and address affordability issues. In Australia, the city of Sydney is the latest to consider such a move, with a proposal to restrict short-term letting currently being reviewed by city council staff. The proposal, which was put forward by Greens councillors, including Matthew Thompson, suggests that there are approximately 5,000 Airbnb properties in the city that could be used as homes, but are instead sitting empty for much of the year.
The Situation in Sydney
According to Councillor Thompson, the current 180-day cap on short-term letting is not being effectively enforced, and many property owners are finding ways to sidestep the restriction. This has led to a situation where many properties are being used as de facto hotels, rather than as homes for residents. Thompson argues that this is exacerbating the city’s housing crisis, which has left many people struggling to find affordable accommodation. "We’re in the middle of a housing crisis and people can’t find homes. People are literally homeless," he said. The proposal to restrict short-term letting in Sydney is currently being reviewed by city council staff, and is expected to go to public consultation in the near future.
The Situation in Queenstown
Queenstown, a popular tourist destination on New Zealand’s South Island, is facing a similar dilemma. According to Mayor John Glover, a third of properties in the town are empty on any given night, raising questions about whether the town is experiencing a genuine housing shortage. A council bid to restrict the number of days that houses could be used for short-term visitor accommodation was turned down by the Environment Court in 2023, but the council is continuing to explore ways to address the issue. The council has commissioned a report from Auckland University to investigate the scale of short-term letting in the district, and is seeking stronger regulation from the government. "If Airbnb are required to give our council the addresses of all the places on their platform, then that means at least we can follow up and make sure they’ve got the right permissions and they’re paying the right amount," Glover said.
The Government’s Response
In response to the issue, Housing Minister Chris Bishop has stated that the government does not have a problem with a shortage of land for housing in New Zealand, but rather with allowing housing to be built. "Proposed changes to short-term letting are a symptom of the underlying problem. We are focused on fixing the fundamentals to enable more homes to be built," he said. However, this response has been met with skepticism by some, who argue that the government needs to take a more nuanced approach to addressing the issue. By restricting short-term letting and freeing up housing stock, cities like Sydney and Queenstown may be able to make a dent in their affordability crises, but it will likely require a more comprehensive approach to address the underlying issues driving the problem.
Conclusion
The issue of short-term letting and its impact on housing affordability is a complex one, and cities around the world are grappling with how to address it. While some cities are implementing bans or restrictions on short-term accommodations, others are seeking stronger regulation from government. In Australia and New Zealand, the issue is particularly pressing, with many cities experiencing severe housing affordability crises. As the debate continues, it is clear that there is no easy solution, but by exploring different approaches and working together, cities and governments may be able to find a way to balance the needs of residents, visitors, and property owners, and create more affordable and sustainable housing markets.
