Impact of short-term rentals for holiday-makers on the availability of long-term rental supply

One of the core tenets of the debate is whether increases to the supply of short-term rentals for holidaymakers directly and negatively affect the availability of long-term rental supply. Embedded within this proposition is the assumption that homeowners only operate with two options in mind when thinking about monetizing their assets, the choice to offer short-term or long-term lets. To date, there is insufficient definitive and rigorous research testing this assumption in Australia. Public debates about the relationship between STR and housing supply and affordability needs more research into the behavioural drivers underpinning decision-making in the short-term rental industry. Such research should aim to offer more insight and clarity into this debate, together with helpful policy advice about balancing trade-offs between addressing housing supply bottlenecks in Australia without constraining growth and resurgence of economic activity in the tourism sector.