Immediate action must be taken on short-term holiday rental platforms like Airbnb, amid growing evidence they are worsening the state’s housing affordability crisis and pushing essential workers out of their communities.
A comprehensive submission from Unions NSW to the Essential Worker Housing Inquiry has laid bare the severity of the crisis, with the expansion of unhosted short-term rentals drastically reducing the availability of homes for purchase and long-term renting.
A survey of frontline workers in NSW found 78% are in housing stress, spending more than 30% of their income on housing. This is exacerbated by the fact that as of March 2024, 167,955 dwellings across Australia were being used for unhosted short-term rentals. In Sydney, Airbnb listings are occupied on average for only 71 nights per year, yet they continue to drive up property prices. Of the Airbnbs in Sydney, more than 30% are run by investors with 10 or more listings.
Mark Morey, Secretary of Unions NSW, will present the evidence to an upper house inquiry on Friday: “This is a direct hit to essential workers such as the nurses, teachers, firefighters and police who keep our communities strong and safe. Airbnb and other short-term rental platforms are stripping the market of homes that could be housing these workers, forcing them into longer commutes, financial stress or even homelessness. The NSW Government must take action.
“In March 2024 the state government released a discussion paper on short-term rental accommodation, acknowledging the need for stronger regulation in areas of housing stress. Now it’s time for action.”
The housing affordability crisis has reached critical levels, with extremely low vacancy rates in Sydney coupled with combined weekly rents rising by almost 60% since 2020, from $519 to $833. This has created a desperate situation for many essential workers.
“Places like Byron Bay are taking matters into their own hands, introducing a 60-day cap on unhosted short-term rentals,” Mr Morey said. “The NSW Government must follow suit and introduce statewide limits in high-demand areas.”
The submission outlines nine key recommendations designed to make housing more affordable for essential workers, including introducing large-scale build-to-rent-to-buy programs, tax on unhosted short-term rentals and a statewide cap on unhosted short-term rental stays.
“The market is failing to provide homes for essential workers because it’s been hijacked by investors looking to make quick profits,” Mr Morey said. “We need strong regulations to help the people who actually live and work in our communities. The NSW Government promised to tackle housing affordability, but it continues to delay the tough decisions. Enough is enough.”
Contact details:
Lauren Ferri 0422 581 506 // lauren@hortonadvisory.com.au