Airbnb is putting pressure on the rental market and house prices, according to a new report.
RiskWise Property Research CEO Doron Peleg says while in some areas Airbnb can help absorb an over-supplied rental market, in other areas it has the effect of increasing house prices.
“Those looking for long-term tenancy simply can’t afford to pay the same rates as those taking short-term lets while on holiday,” Peleg says.
He says Airbnb, the online marketplace that allows owners to rent
out their homes to holiday-makers, has proved a lifeline for investors unable to find tenants in over-supplied rental markets, such as inner-city Melbourne.
However, at popular holiday destinations such as Byron Bay, it has helped force long-term tenants out of the market and increased property prices.
“In areas such as these, and particularly in beachside suburbs, we see the overall demand for properties by investors and owner-occupiers going up,” he says.