A study by Infometrics, commissioned by Airbnb, found short-term rental accommodations (STRA) have minimal impact on rental and house prices in New Zealand's major urban areas. Population growth and interest rates are the primary factors driving these prices. The analysis, covering Auckland, Wellington, Queenstown-Lakes, and Christchurch, showed STRA's limited effect on rental prices and no significant impact on house prices. For instance, in Queenstown-Lakes, STRA contributed only USD 11 weekly to rent increases compared to USD 101 from population growth. The study underscores the housing supply shortage as the core issue behind rising prices, advocating for strategic planning and policy-making.
A recent study by Infometrics, commissioned by Airbnb, has revealed that short-term rental accommodations (STRA) have a minimal impact on rental and house prices in New Zealand's major urban areas. The study highlights that population growth and interest rates are the primary factors driving these prices.
The independent analysis focused on Auckland, Wellington City, Queenstown-Lakes District, and Christchurch City. According to Brad Olsen, CEO and principal economist at Infometrics, population growth and interest rates significantly influence rental prices. Olsen noted that their analysis revealed population growth and interest rates as the most significant factors influencing rental prices in the analyzed areas.
The study found that STRA has a limited effect on rental prices and no significant impact on house prices. For instance, in the Queenstown-Lakes District, STRA contributed only a negligible amount to monthly rental price increases. From January 2018 to September 2023, population growth resulted in a USD 101 weekly increase in rent, while STRA contributed just USD 11 weekly.
Olsen pointed out that the underlying issue in New Zealand's housing market is the lack of supply. This shortage has caused house prices and rents to rise over time. Before the pandemic, a combination of strong population growth, low mortgage interest rates, and insufficient new housing supply led to significant house price inflation.
Susan Wheeldon, Airbnb's country manager for New Zealand and Australia, emphasized the minimal impact of STRA on the housing market. Wheeldon stated that the new analysis shows short-term rentals are not the primary drivers of housing challenges. She noted that in Queenstown, Airbnb's influence on annual rental prices is less than the cost of a takeaway coffee.
Wheeldon also highlighted Airbnb's positive economic contributions, stating that the platform injected USD 2.8 billion into New Zealand's GDP and supported over 22,000 jobs. She added that they aim to work with governments and communities to establish consistent nationwide rules for short-term rentals.
As New Zealand struggles with housing affordability issues, this study provides valuable insights into the real drivers of rental and house price increases. While STRA has often been cited as a culprit, the data suggests that addressing population growth and interest rates may be more effective in managing housing costs.
The findings highlight the need for strategic planning and policy-making to tackle the housing supply shortage and its impact on prices. Collaborative efforts between the government, the housing sector, and platforms like Airbnb could lead to more balanced and sustainable housing solutions in the future.
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