Most Airbnb-style short rentals in Tasmania used to be long-term leases, study finds

The analysis from a top housing academic is part of a three-year project looking at the effect of the short-stay industry on the rental market in Tasmania, which is in the grips of a housing crisis.

Among short-stay properties in Launceston for which data was available, about two-thirds (67%) were previously long-term rentals.

He said while supporters of the industry noted short-stay was only a fraction of the overall rental market, even a small number of homes would make a difference in a city like Launceston.

Other states are also grappling with the issue. In October, the Queensland government announced an investigation amid concerns the rising number of short-stays was worsening the situation for renters.

Last month Airbnb criticised Byron Bay council after it considered using its powers to limit the use of residential properties for holiday accommodation. The New South Wales government subsequently intervened to stop the move.

Hobart city council has sought to introduce a cap on short-stay accommodation in the city, though the move must approved by a state planning commission.

The June baseline Shelter Tasmania report found Hobart had 6.8 times more short-term rentals (as a proportion of its total private long-term rental market) than Sydney, and 4.5 times more than Melbourne.

Vacancy rates across Tasmania have fallen dramatically over the past five years and now hover at about 1%, and are even lower in Hobart. Median rents have also risen, particularly in Launceston (14% yearly change) and Devonport (17%).