Holiday Rental owners on the NSW south coast could find themselves facing higher rates if they keep their properties empty as councils attempt to address the regional housing crisis.
It comes after Eurobodalla mayor Mathew Hatcher sent letters to owners of unoccupied houses last month, which he said had identified dozens of possible homes that could ease the region’s housing crisis, but local real estate agents say the initiative has not made a noticeable difference to the rental market.
Shoalhaven mayor Amanda Findley said the situation was so dire, however, that even if their similar letter were to push just a dozen houses onto the long-term rental market, it would help. Shoalhaven is home to almost 13,000 ghost houses – about 22 per cent of the region’s homes are unoccupied. Rental vacancy rates in the area have fallen from 5.1 per cent in 2019 to just 0.9 per cent last month.
Findley said the council was also considering other urgent ways to make more housing available, including by possibly increasing council rates for empty houses, to make investing in short-term accommodation less attractive. She said there were 4,000 properties in the Shoalhaven listed for short-term accommodation.
“Ten years ago, when you bought an investment property, a long-term rental was what was on your mind. But the growth of holiday letting platforms such as Airbnb, VRBO, Expedia, booking.com and Search and Stay has driven people to think they can have the best of both worlds: a place they can use themselves, while also earning $50,000 a year.
“It’s had a remarkable impact on [housing] availability. And it completely hollows out the suburbs. You can walk down streets in the Shoalhaven in winter where there are no lights on because no one is home.”
Bega Shire is also considering writing to owners of empty houses, although its mayor Russell Fitzpatrick said a similar exercise after the bushfires had not produced nearly enough homes to meet demand. His focus was on building new homes in the area as quickly as possible.
The housing crisis gripping regional NSW threatens to change the fabric of country towns, as long-term residents are priced out and key workers contemplating a move to the area struggle to find housing.
Article first published Sydney Morning Herald.