The Sunshine Coast in Queensland, Australia, has been facing a housing crisis for quite some time now. Many factors have contributed to this problem, but the short-term rental industry, especially platforms like Airbnb, have been the subject of much debate and criticism. The debate has intensified recently, with some people blaming short-term rentals for exacerbating the housing crisis in the region. However, a recent article by ABC News suggests that the situation may not be as straightforward as it seems.

According to the ABC article (which can be read in full here), real estate agents on the Sunshine Coast have reported an increase in property prices and rental demand due to the COVID-19 pandemic. This surge in demand has led to a shortage of affordable rental properties, making it difficult for many people to find suitable housing. The article also highlights that short-term rentals, particularly those listed on platforms like Airbnb, have been accused of taking up a significant portion of the available rental properties, further exacerbating the housing crisis.

I believe that the situation is more complex and that other factors, such as population growth, infrastructure constraints, and the high cost of living, also contribute significantly to the problem. The statistics that we understand from the Sunshine Coast Council are that approximately 30-35,000 relocated to the Sunshine Coast in the last 1-2 year period. The impact felt across the region is obvious to most and will without doubt have increased our general cost of living, rental & housing prices across the region. This is undoubtedly a very complex situation and will require a multifaceted solution to not only the low income housing crisis, but also to the greater regional impact of affordable housing for average Sunshine Coast families.

From my perspective, it is essential to consider all the factors that contribute to the housing crisis on the Sunshine Coast before blaming the short-term rental industry entirely. While it is true that platforms like Airbnb have increased in popularity over the years, it is crucial to remember that they are not the only contributing factor to the housing crisis. Therefore, it would be unfair to place the entire blame on the short-term rental industry. It’s a challenging problem as the Sunshine Coast region relies very heavily on the tourism dollar and catering to the vast guest portfolio that travel to the region requires a strong & professional short-term rental industry to support it.

That being said, there is no denying that the short-term rental industry has had an impact on the housing market. As more people list their properties on platforms like Airbnb, the debate is that the number of available long-term rental properties decreases, leading to a shortage of affordable housing. This situation is particularly challenging for low-income families, who are already struggling to find suitable housing.

Speaking from our personal experience, homeowners travelling during this time has increased the short-term rental market space, but these homeowners are looking for a very short-term solution, whilst they take temporary time off with their families to travel and see the country now being able to step back from the 9-to-5 office space with more flexible working arrangements. Without the STR market, to support them financially, it is very likely those properties would otherwise sit and wouldn’t necessarily be rented on the permanent rental market over that period, as most simply leave their homes as is, and return within a few months.

Our point to any investor looking to make a greater return on their investment has always been if the motivations are purely financial, then taking your average home off the permanent rental market and moving it to STR is not the solution. It’s false to think that a stronger net revenue will be achieved on the STR market. Investors need to understand that there are higher costs associated with the short-term rental market, therefore the average property will make stronger net returns under permanent rent. We typically cater to an investor looking for a multifaceted solution whereby they are utilising a holiday home themselves and are looking to make a return on that investment in between when the property would otherwise sit empty.

In conclusion, the housing crisis on the Sunshine Coast is a complex problem that requires a multifaceted solution. While it is essential to acknowledge the impact of the short-term rental industry, it is equally important to consider other factors such as population growth, infrastructure constraints, and the high cost of living. By addressing these issues holistically, we can work towards finding a solution that benefits everyone in the community.

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