How Has the Covid-19 Pandemic Influenced the Impact of Airbnb on the Availability and Affordability of Long-Term Rental Housing in New Zealand?
15 Pages Posted: 25 Apr 2022
Abstract
Background: We investigated the impact, pre- and post-Covid-19, that Airbnb has had on the availability and affordability of long-term rental properties in New Zealand (NZ).Method: We examined the impact of Airbnb on the rental housing market at a national and regional level. Short-term let (STL) data were sourced from AirDNA. Long-term let (LTL) data was collected from the Ministry of Business Innovation and Employment (MBIE). Data on each property were aggregated by financial year.Results: Listings increased between 2016/17 and 2019/20 then decreased in 2020/21. A regional comparison of mean monthly income found that, in most cases, income from LTLs was significantly higher than from STLs. Nonetheless the proportion of STLs in the rental market increased between 2016 and 2020. This trend continued during 2020/21 in most areas, despite NZ’s borders closing to international travelers.Conclusion: STLs represent a large share of the rental housing market in tourist areas outside cities, despite returns for STL being lower than for LTL. Given that pre-pandemic occupancy rates were stable or increasing, landlords may be taking a long-term view on profitability, or have non-financial incentives for choosing STLs. The Covid-19 pandemic led to a short-term reduction in STLs.
Keywords: tourism, Airbnb, COVID-19, Housing affordability
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