the short-term rental accommodation challenge – … · • short term holiday rentals concern...
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Professor Nicole Gurran, Urban Housing Lab, The University of Sydney
THE SHORT-TERM RENTAL ACCOMMODATION CHALLENGE – How can Australia’s coastal councils respond?
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Overview
• Context – Short term holiday rentals, the digital economy, and local governments
• Survey of Australian Coastal Councils• Snapshot of Northern Rivers• Summary and implications
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Context• Holiday homes long been part of coastal
Australia• “Share economy” and online platforms
dramatically increase potential market for residential tourism
• Direct marketing, transactions • Existing home & minimal establishment costs for
new operators (“hosts”)
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Rapid growth of online “home-sharing”
Airbnb Dec 2016• 3 million Airbnb
homes /rooms• 150 million guests• 191+ countriesMarriott Dec 2016• 1.191 million
rooms • 120 countries0
5000
10000
15000
20000
25000
Airbnb Listings, SydneyInside Airbnb.com, AFR 6/5/13
Airbnb listings, Sydney
Airbnb listings Melbourne
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Home-sharing & the “sharing economy”
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Types of “home-sharing”
• Traditional short term holiday rentals – ie. holiday homes
• Principle residences which are “shared” with visitors:–Whole homes listed when residents are away– Rooms or shared rooms rented to visitors, while
resident “hosts” remain present
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Polarising local communities• Noise, nudity, nuisance?• Tourism gentrification / displacement?• Or income for residents and their neighbourhoods?
http://www.sfexaminer.com/despite-airbnb-overture-sf-expected-approve-60-day-cap-short-term-rentals/
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Policy & regulatory debates
• Evolving area of policy, evidence vacuum, regulatory uncertainty
• States & local governments considering their responses
• Focus on capital cities (Sydney and Melbourne) – but issues & regulatory responses may affect non metro areas differently
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Survey of Australian Coastal Councils
• March – April 2017• 52 responses • Scoping study to determine:–Whether there had been an increase in short term
rentals since online platforms– The key issues if any– Current & potential planning & policy responses
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80% respondents report increase in short term accommodation listings
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Nearly half say this increase dates from the last 2 years
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Most of those with increased listings report increased visitor numbers, year round
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Short term rentals are permissible in most coastal areas
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But planning rules differ • Short term rentals often need specific planning or
building approval• Distinction between short term rentals and Bed and
Breakfasts (generally always need planning permission)• May be confined to particular zones (eg. tourism)• Prohibited in 6 responding council areas (but not
policed)• State planning laws differ• Scope for local governments to introduce own planning
controls also differs
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Key issues• Amenity impacts - anti-social behavior, drunkenness, loud
parties etc.• Conflicts between long term residents and visitors, and the
loss of community when places become “itinerant neighbourhoods”
• Poor management of properties / guests by “rogue operators”
• The potential for online listings to undermine tourism strategies
• Health, fire, safety concerns (eg. swimming pool regulations) • Infrastructure capacity – eg. parking, traffic, wastewater
controls Lack of rate revenue from unlicensed operators• Housing affordability pressures
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Increasing numbers of neighbour complaints – in some coastal councils• Noise, rubbish, parking• “Strangers” in residential areas• Lack of a managing agent • Complaints from licensed operators about unlicensed
properties being listed on Airbnb, or “unregulated Bed and Breakfasts”
• Poor treatment of apartment common areas• Distinction between “hosted” and unhosted
accommodation• 20% of respondents - no or minimal complaints about
short term rentals
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Adequacy of planning controls
Very different responses, across four groups:–No controls at all in place– Existing controls inadequate or unclear– Controls are adequate, but compliance /
enforcement is difficult– Controls are appropriate
Respondents called for statewide frameworks to guide local plans and controls
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Need to distinguish between B&Bs, hosted & unhosted “home-shares”?
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Only 10% of respondents currently limit the number of days homes can be “shared”
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Mixed views on the role of local government in communicating rights & responsibilities to owners
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Mixed views about need for / feasibility of enforcing regulation• “Planning hasn’t caught up with online technology” • Do tourists use homes differently to residents?• Difficulties of monitoring and enforcing regulations• Lack of data available to local government• Issues differ in each local area (economic drivers,
the profile of existing tourism accommodation, land and housing supply constraints etc.)
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30% of respondents say housing market pressures have increased since online platforms – but no clear data, not necessarily related
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Northern Rivers NSW – snapshotInside Airbnb data (April 2016; Census 2011 data; NSW Rent & Sales Report Dec 2016)
Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
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Most listings are whole dwellings,
but 35% rooms & shared rooms –
new type of accommodation?
Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
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Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
About 40% of listings appear to
be permanent holiday homes
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Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
Significant proportion of rental housing stock, particularly in Byron
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Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
Holiday rentals well exceed vacancy rate for permanent rental housing – but unclear how
many are new conversions
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Source: Inside Airbnb data 2016, analysis by Urban Housing Lab 2017
New income for residents?
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Summary• Short term holiday rentals concern many coastal
councils• But differences in:– Types of accommodation now being rented via online
platforms– Local government views – beneficial for economy
versus local community impacts– Neighbourhood, housing market & tourism impacts and
risks – Planning & management responses
• Future trajectory of short term rentals and home-sharing – growth or stabilisation?
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Implications & further work
• Lack of data available to local government• Lack of legal clarity (& differences between
states & at local level)• Need for state government framework• Need for tools to enable different responses in
different contexts, knowledge sharing• Non regulatory solutions - potential roles of
online platforms & holiday rental managers?• Maximising opportunities, minimising risks?