•   
  •   

MoneyAirbnb not significantly hurting rental affordability in Sydney and Melbourne, report reveals

08:58  08 november  2018
08:58  08 november  2018 Source:   msn.com

Airbnb squeezing renters from some 'high-demand' Sydney suburbs

Airbnb squeezing renters from some 'high-demand' Sydney suburbs Tourists are forcing long-term renters out of Sydney's most popular beachside and inner-city suburbs, where up to one in seven rental properties are "commercial" Airbnb listings.

The number of properties available for rent on Airbnb is closing the gap on empty rental properties available in Sydney 's holiday hotspots with more than a “It is clear that providers like Airbnb are not helping the affordability problem facing many Australians on low incomes,” says Prof Nicole Gurran

Inside Airbnb 's view of Sydney . Orange dots are entire home listing. Green dots are private rooms. Although the committee noted the Grattan Institute's sharing economy report , which states Airbnb only accounts for two percent of Sydney 's rental capacity, she argued that doesn't tell you about the

Airbnb not significantly hurting rental affordability in Sydney and Melbourne, report reveals© AAP Images Airbnb isn't making rental affordability "significantly" worse, but it is reducing the number of properties that are available for long-term renters in Sydney and Melbourne. Airbnb isn't making rental affordability "significantly" worse, but it is reducing the number of properties that are available for long-term renters in Sydney and Melbourne.

According to a new report, released today, that applies especially to the"high-demand" suburbs with "significant tourism appeal".

The report was from the Australian Housing and Urban Research Institute (AHURI), which describes itself is a not-for-profit organisation funded by several universities and governments (Federal, state and territory).

Renters now in the majority in over 40 per cent of Sydney: report

Renters now in the majority in over 40 per cent of Sydney: report More than 40 per cent of neighbourhoods across Greater Sydney now have a majority of renters, making tenants a growing electoral force in NSW. That’s the conclusion of a report by lobby group the Committee for Sydney which maps how renting is on the rise in the city. The neighbourhood with the highest share of renters in Sydney was Parramatta-Rosehill (70 per cent) followed by Warwick Farm (67 per cent). But a swag of inner-city neighbourhoods were also among the ten suburbs with the biggest proportion of renters.

Rental affordability in Sydney and its surrounds is at a record low, with greater Sydney holding firm as the least unaffordable metropolitan region in the country. Greater Melbourne remains the second most unaffordable metropolitan area, though had not changed significantly since the previous quarter.

Airbnb -type rentals also stand accused of ruining neighbourhood amenity in parts of Sydney – most notably in the Bridgeport apartment complex in But Airbnb 's impact on housing affordability remains contentious. Anthony Meaker, the head of company-owned property management at McGrath, said

It investigated the extent to which short-term leasing adds to housing affordability pressures, found that one in seven rental properties in Sydney's and Melbourne's inner-city and beachside suburbs are "commercial" Airbnb listings.

The research team — academics from the University of New South Wales (UNSW) and Swinburne University of Technology — defined "commercial" as an entire house or apartment that is listed for rental for more than three months (90 days) each year.

Reasons people gave for renting out their dwellings included "meet[ing] new people", helping to "cover the cost of owning/renting" and specifically managing their "Airbnb properties as a business".

Which suburbs are in 'high demand'?

In Sydney, there was a high concentration of commercial Airbnb listings in Darlinghurst and the beach suburbs (Bondi, Bronte, Coogee and Manly), making up 11-15 per cent of all properties available for renting.

Airbnb ends forced arbitration for discrimination and harassment

Airbnb ends forced arbitration for discrimination and harassment Airbnb Inc., following Alphabet Inc.’s Google, Facebook Inc. and Uber Technologies Inc., said it would not force employees who filed sexual harassment claims to settle those cases in private arbitration. 

In Sydney (shown above), Airbnb offerings are mostly concentrated in popular tourist areas. Interestingly, partial house/apartment listings spread out more We see a similar pattern in Melbourne (above). Airbnb listings aggregate around the city centre but also extend beyond the inner core to the

Inside Airbnb is an independent, non-commercial set of tools and data that allows you to explore how Airbnb Short Term Rentals are currently operating largely unregulated in residential properties in the city High profile attempts by Owner Corporations (backed by the City of Melbourne ) to restrict short

There were about 5,000 Sydney listings in November 2014, which peaked at almost 28,000 in December 2017. But it has since fallen to about 20,000 in February 2018.

Sydney tends to experience a spike in Airbnb listings in the months of December and January — a period which coincides with Christmas and its famous New Year's Eve fireworks.

In Melbourne, 9-15 per cent of all rental properties in the Central Melbourne, Docklands, Southbank, Fitzroy and St Kilda clusters were commercial Airbnb listings.

There was an increase in listings in Melbourne, from 5,000 listings (August 2015) to around 18,000 (February 2018).

"As rental markets in Sydney and Melbourne are unaffordable for lower-income renters, even a small reduction in available rental properties is concerning," said Dr Laura Crommelin, the lead researcher.

She observed that in those "high-demand" suburbs, there was a decrease in bond lodgement rates and increasing levels of property vacancy.

Dust storm moving towards Melbourne causes thick haze

Dust storm moving towards Melbourne causes thick haze A dust storm is being blown towards the Melbourne CBD.

EXECUTIVE SUMMARY: AIRBNB ’S IMPACTS ON HOUSING AFFORDABILITY IN VANCOUVER Airbnb in Vancouver: An This report will attempt to model host activity on Airbnb and estimate the availability and utilization of STR units in Vancouver. Airbnb - Economic Impact Reports https

The report warned that Airbnb and other homesharing sites are causing landlords to remove Airbnb is driving up the rent in your urban neighborhood | Alexander Zaitchik. “While independent research shows that home-sharing has no significant impact on housing affordability in London, we believe

Her team surveyed 491 Airbnb hosts from Sydney and Melbourne, in particular, because they had "more extensive data sets", since much of Airbnb's early growth in Australia occurred in those capital cities.

They also analysed rental bond lodgement data, and figures obtained from AirDNA — a company that collects Airbnb listings each month — and reports on each listing's availability and occupancy.

'Reshaping' the investment property market

The report suggested that a swell in short-term Airbnb rentals in those markets was taking away from longer-term rentals, "thereby contributing to increasing unaffordability in the private rental sector".

However, in Melbourne, that was somewhat offset by a boom in apartment construction in recent years, and a large number of those being "unoccupied".

"We found some evidence that Airbnb is reshaping the market for investment properties in Australia," Dr Crommelin said.

"For example, real estate agents have been cited claiming investors will pay a 2 - 3 per cent premium for properties that show a higher-yielding Airbnb income stream.

"Similarly, Airbnb property managers told us their businesses have been growing rapidly, as some investors are achieving better returns on short-term letting than long-term rental."

Sydney's housing market downturn could end up being the longest on record.
Sydney's property slump could rival the downturn in the early 1990s that coincided with Australia’s last recession in 1991. As seen in the next chart below posted by Kusher on Twitter, in the past it’s taken several years for Sydney prices to return to prior cyclical peaks whenever values have fallen this far this fast. To October 2018, Sydney dwelling values are -8.2% lower than their peak. Since 1980, the only larger decline recorded in Sydney was a -9.6% fall in values which started just before the last recession. This decline is now longer and deeper than most with little sign of abating. pic.twitter.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!