A key motivating factor behind the rapid increase of short-term rental accommodation properties is the attractive financial incentives they offer.
The Real Estate Institute of Australia (REIA) recently published a report highlighting a significant surge of nearly 23 per cent in the number of available Australian properties for short-term rental accommodation (STRA).
According to the report, during the March quarter, there was a total of 133,968 properties in Australia, with a substantial portion located along the eastern coast of the country.
Hayden Groves, President of the REIA, emphasized that these findings carry implications for the long-term housing market. At first glance, the number of short-term rental accommodation properties appears to closely align with the anticipated housing shortage that Australia is expected to confront in the upcoming fiscal year.
These statistics underscore the significance of the domestic tourism accommodation sector and reinforce Mr. Groves' assertion that the growing presence of short-term rental accommodation properties contributes to the ongoing rental housing crisis. The report further reveals that over 80 per cent of Australian property listings are adaptable and capable of seamlessly transitioning between the long-term and short-term rental markets.
A key motivating factor behind the rapid increase of short-term rental accommodation properties is the attractive financial incentives they offer. The report further identifies that in many major Australian cities, achieving an income equivalent to a full year in the long-term rental market requires significantly fewer days of successful short-term renting.
As rental costs continue to climb and vacancy rates persistently remain low, government efforts to address the housing shortage are still a work in progress. With no immediate solutions in sight, President Hayden Groves of the REIA stresses the necessity for an evidence-based understanding of how short-term rental accommodation impacts renters. This understanding can inform policy responses and foster collaboration between government entities and short-stay accommodation providers.
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