Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Airbnb owners cream millions in Auckland rent

Airbnb may be fuelling rents on Waiheke Island, with new research showing more than 1200 Auckland houses are permanently rented through the accommodation website.

Waiheke Island Photo: 123RF

The research, conducted by Auckland Council, has given the first insight into the booming Airbnb market in the city, but researchers doubted it was affecting the wider rental market.

In the year to last September, 12,370 Auckland properties had at least one booking through the Airbnb website, which is used mainly by visitors to the city.

Of those, 6105 rented out an entire property and collectively earned a total of $89.8 million.

A similar number rented out individual rooms in a property, with a small number offering shared rooms.

The number of entire properties rented full-time on Airbnb rose by 154 percent in a year.

Seventy-five percent of Auckland's entire-property listings were in the central isthmus area, the tourist hotspot Waiheke Island, and some northern suburbs.

A map of listings shows most Airbnb properties are concentrated in the central city and on Waiheke Island Photo: Supplied / Auckland Council

Across Auckland, researchers Penelope Tuatagaloa and Brian Osborne found the renting of entire homes on Airbnb represented less than one percent of the rental property market.

"These findings suggest that Airbnb full-time listings ... are likely to have had no or a minimal impact on the private residential market at a macro level."

However, on Waiheke Island, which is both a popular tourist destination but also a commuter suburb due to its frequent ferry service, Airbnb is thought to be making an impact.

The report found 16 percent of the island's rental dwellings, and three percent of all dwellings, were "frequently available" on Airbnb.

Waiheke full-time Airbnb properties earn an average $998 a week, compared with $507 for new long-term rentals assessed in July last year.

"In a tight housing environment, this potentially could have an impact on the residential rental stock, and prices on the island," the report concluded.

It noted long-term rents on Waiheke rose 15 percent over two years, the highest rise in Auckland.

Just five Airbnb hosts rent out eight percent of all properties in Auckland Photo: Supplied / Auckland Council

About eight percent of listings for entire properties were linked to just five hosts, though they were not necessarily the owners.

The report estimated dwellings full-time on Airbnb earned owners a median $27,324 a year, from an average occupancy of 139 days.

Researchers found no current impact on house prices generally, but warned that in popular areas, at a time of housing shortages, the earning potential from Airbnb could fuel already high house prices.


© Scoop Media

 
 
 
Top Scoops Headlines

 

Commercial Scoop User? Help Scoop Survive (and Thrive!)

The ScoopPro licensing terms require that commercial users of Scoop.co.nz pay a reasonable fee in order to access the Scoop site so that this same information remains free and accessible to the wider public regardless of their disposable income. More>>

Joseph Cederwall: Building a Community Newsroom

A combination of new technology, ideas, institutions and business models and a renewed energy and commitment by the Scoop team, means Scoop aims to be at the forefront of the development of this renaissance that we term ‘News 3.0’. More>>

ALSO:

Scoop 3.0: Saving The News

Scoop Co-Founder Alastair Thompson - One of the saddest aspects of the decline of the news industry, not just here in NZ - but everywhere, is that it often seems invisible, in large part because news is a confidence business... More>>

ALSO:

UK Cabinet Backs Deal: Gordon Campbell On The Latest Roll Of The Brexit Dice

Brexit has left the British public looking like a nation of Wellington bus commuters. In both cases, the unholy mess bears no resemblance to what people were promised or the spin being used to justify it. More>>

Gordon Campbell: On The Democratic Leadership And Trump

On the big picture, the poll predictions were dead right. In the end, the Democratic Party won a clear victory in the House, and lost as expected in the Senate, where it had been defending at least 10 seats in regions that had voted heavily for Trump in 2016. More>>

ALSO:

 
 
 
 
 
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog