Exploring the impact of short-term rentals on housing affordability for Airbnb

Australia is currently facing a housing crisis, with many struggling with housing availability and affordability. Amidst this crisis, the growth of short-term rental accommodation (STRA) properties, including Airbnbs, has been frequently cited as a potential contributing factor. To address this contentious issue, Airbnb engaged Urbis to research, analyse and explore the relationship between STRA and housing affordability in Australia.

The primary challenge was to investigate whether the increase in STRA properties was indeed impacting housing affordability and availability across Australia. This required a thorough and unbiased analysis to provide clarity on a topic that has been widely debated but insufficiently researched.

We conducted a comprehensive study involving statistical analysis of proprietary Airbnb property data alongside housing market data.  Our goal was to examine the potential causal links between the growth of STRA properties, and any negative outcomes related to housing availability and affordability. By leveraging our expertise in data analysis and housing market dynamics, we aimed to provide a clear and evidence-based understanding of the issue.

Our analysis revealed that STRA has no consistent impact on housing affordability across Australia. This finding suggests that other factors are driving the affordability outcomes, and that focusing solely on STRA properties may not address the root causes of the housing crisis.

Our insights and recommendations outline that any effective solutions to the nationwide housing affordability crisis must tackle the larger systemic issues at play. 

Read the Short-term rental accommodation and housing in Australia report.