New research shows more than one in ten Australians now stay in Airbnb rentals when they travel, up three percent over the course of a decade.
Gary Morgan, CEO of market analysts Roy Morgan, says the proliferation of short term-accommodation has far-reaching implications for all major cities.
The research shows 10.4 percent of travellers stayed in home sharing accommodation on their last trip, up substantially compared to a decade earlier when only 7.1 percent chose this type of accommodation.
“Unfortunately, there is a price to pay for this cut-rate accommodation and it is being paid for by apartment buyers and developers who are suffering from a reduction in apartment values caused by short-term travellers,” Morgan said.
Aside from the effects on other accommodation providers, Mr Morgan says Airbnb presents a “huge problem” for cities like Melbourne, where apartment prices have nose-dived on the back of cheap rentals.
“These apartments weren’t originally bought or sold on the understanding they would be used as a revolving door by travellers from both Australia and overseas.”
According to Roy Morgan, Melbourne is Australia’s favoured destination with Airbnb travellers, with 11.6 percent of people visiting Victoria’s capital city on their last trip staying in either rented houses or rented serviced apartments on that trip, up 3 percent on a decade ago.
In comparison, 8.5 percent of people who visited New South Wales capital Sydney on their last trip stayed in either rented houses or rented serviced apartments on that trip, up 1.3 per cent on ten years ago.
Brisbane has also seen strong growth in this type of accommodation being utilised, with 11.4 per cent of people who visited Brisbane on their last trip stayed in either rented houses or rented serviced apartments on that trip compared to 7.2 percent in 2008.
In post-mining boom Perth, however, the trend is reversed. Only 4.2 percent of people who visited the WA capital on their last trip stayed in rented houses or rented serviced apartments on that trip, less than half the levels of a decade ago when the mining boom was in full swing.
A mayoral candidate for Melbourne, Gary Morgan has urged the Victorian government to legislate that that those renting apartments through Airbnb stay for a minimum of one month, which “forces the traveller to invest in the maintenance of the apartment and surrounding amenities”.
“Melbourne has seen a huge surge in apartments being used for Airbnb short-term accommodation over the last decade and this has cut the value of apartments,” he said.