Disclaimer: I’m an Airbnb simp. I love waking up near strange beaches in strange beds. I love avoiding hotels. I love scrolling the app, planning holidays I’ll never go on.
However, despite all of this, I know that Airbnbs might be harming Australia. This is because they’re somewhat exacerbating our housing crisis.
As you probs know, Australia’s real estate market is munted. Over the last year, the price of capital apartment rentals have risen by 22.2%. Meanwhile, property prices are also beginning to rise once again. As it stands, there are too many people needing a house and not enough homes on the market.
Which brings us to Airbnb. These homes can’t be bought or rented long-term. Such places are constricting the rental market and inflating the price of some joints.
This has led some councils to announce that they might create Airbnb taxes. These taxes would be used to dissuade folks from advertising their homes on such apps.
Take, for instance, Melbourne’s Yarra Council. This council is thinking about creating a medium-term Airbnb tax. The money from this tax will be used to support an emergency rental fund.
Yarra consists of Abbotsford, Collingwood, Fitzroy, and Richmond, just to name a few. In March of this year, 1608 Airbnb properties were available in this region.
Meanwhile, other local councils have considered banning Airbnbs altogether. In 2021, Victoria’s Colac Otway Shire was one such region. At this time, 70% of their Apollo Bay homes were empty during winter.
As of 8 June 2023, 109 Airbnbs were available in Apollo Bay at the start of July.
An Airbnb Tax: Will It Help?
In theory, Airbnb taxes are a great short-term solution. They’ll dissuade people from keeping their Airbnbs open, which may increase the number of houses on the market. And if there are more houses on the market, the price of these bad boys will drop. This is just simple economics.
What’s more, putting these tax dollars towards financing emergency rental funds is genius. This would mean that some people who can’t pay their rent won’t become homeless.
However, Airbnb taxes aren’t a silver bullet. They won’t fix our housing crisis. We’ll need more robust systems in place.
According to The University of Queensland’s Dorina Pojani, some colossal changes will need to happen to mend our housing system. Pojani is an Associate Professor in Urban Planning.
“Australian society should come to share an understanding that a dwelling is a space needed for living,” said Pojani. “It is not a vehicle to store and showcase wealth and extract excessive rents from the ‘houseless.’ Nor is its purpose to sustain class divisions from one generation to the next.”
To end Australia’s housing crisis, Pojani stated that we need rent caps, more student housing, and higher taxes on investment properties. However, the chance of such policies being embraced by our governments is slim.
Airbnb’s Response to a New Tax
On 8 June, The Latch contacted Airbnb for a comment regarding Yarra Council’s tax idea. As of publishing, they haven’t responded but we’ll keep you in the loop if they do.
Related: I Tried Swimply App, the ‘Airbnb for Pools’, in Australia
Related: Is Australia’s Rental Market Improving? Or It Still a Throne of Garbage?
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