Brisbane Introduces New Permit System for Airbnb to Tackle Housing Shortage

Airbnb operators in Brisbane may soon require permits as authorities take action against short-stay rentals to address housing supply shortages.

On June 12, Brisbane Lord Mayor Adrian Schrinner announced that his office would implement a permit scheme under a new law to regulate Airbnb accommodation in the city.

This follows an investigation into the Brisbane short-stay accommodation market by a task force established by Mr. Schrinner in 2023.

Data analytics site AirDNA indicated that over 10,000 properties in Brisbane were used for short-stay accommodation.

While the figure only accounted for less than one percent of total housing in Brisbane, Mr. Schrinner believed short-stay accommodation still needed to be regulated.

“This hasn’t created the housing crisis, but obviously it is something that needs to be managed and still adds to it,” he told ABC Radio.

How the Permit Scheme Works

Under the proposal, the City of Brisbane council will introduce a permit system that requires property owners to have appropriate planning approvals, body corporate support, and a 24/7 property manager to run short-term rentals.

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Those who do not meet the requirements will be forced to offer their properties in the long-term rental market to meet housing demand in Brisbane, which recently has become the second-most expensive property market in Australia.

“We have identified over 400 properties that need to come back into the long-term rental market,” Mr. Scrinner said.

While the lord mayor acknowledged the demand for short-term accommodation ahead of the 2032 Olympics, he said the long-term rental market needed to be supported.

Aside from the new permit scheme, the City of Brisbane will continue to charge higher council rates for short-term accommodation to encourage property owners to return to long-term rentals.

“They are not using the house for a standard residential purpose. They are using it effectively for a business purpose,” Mr. Schrinner said.

Brisbane is not the only place in Australia looking to address housing shortages by tightening regulations on short-term accommodation.

In 2023, the Victorian government introduced a 7.5 percent tax on Airbnb properties, set to take effect in 2025.

The revenue from the tax will be used to develop social and affordable housing in the state.

Meanwhile, the New South Wales government is contemplating a similar levy to discourage property owners from participating in the short-term rental market.

Policy Expert Says Airbnb Is Not Responsible for the Housing Crisis

Amid the new wave of crackdowns on short-term rentals, Graham Young, the executive director of the Australian Institute for Progress, stated that Airbnb was not to blame for the current housing crisis in Australia.

In an opinion piece for The Epoch Times, Mr. Young explained that the current crisis affects both buyers and renters.

“Landlords, faced with rising costs like interest rates on mortgages and limited housing supply, are taking the opportunity to increase rents.

He explained that the crisis stems from various factors, including increasing house prices, insufficient housing supply, and rising interest rates and other expenses.

“House prices have risen due to asset prices increasing with declining interest rates, and the growing demand outpacing housing supply,” he added.

Additionally, Mr. Young mentioned that the demand for short-term accommodation, especially holiday rentals, is unlikely to exacerbate housing shortages.

Referring to a 2023 report by the Queensland government, Mr. Young noted that the number of short-term housing in the state has remained unchanged since 2018.

“If there wasn’t a rental crisis five years ago when short stays were a similar proportion of the market, and it hasn’t increased since then, it should be no surprise that their regression analysis could find no link between short stays and housing affordability,” he concluded.