Exodus of Australian Landlords Driving Up Rents
The Australian rental market is facing a crisis, as a growing number of landlords are selling their properties or taking them off the market altogether. This is due to a number of factors, including fear of government rent control, rising property taxes, and the increasing popularity of holiday letting platforms like Airbnb.
The result is a shrinking pool of rental properties, which is driving up rents. In some cases, rents have increased by as much as 20% in the past year. This is making it increasingly difficult for people to find affordable housing, especially in major cities.
Government Rent Control
One of the biggest concerns for landlords is the possibility of government rent control. In recent times, there have been calls for rent control in Australia, as a way to address the housing affordability crisis. However, landlords fear that rent control would significantly reduce their rental income.
Another concern for landlords is rising property taxes. In recent years, property taxes have been increasing in Australia – especially land taxes. This is putting a further squeeze on landlords’ ability to provide rental accommodation.
The increasing popularity of holiday letting platforms like Airbnb is also contributing to the exodus of landlords. Platforms like Airbnb allow homeowners to rent out their properties to tourists on a short-term basis. This can be a more profitable way to use a property than renting it out long-term.
Rising Interest Rates
Rising interest rates are also making it more expensive for landlords to hold onto their properties. This is because landlords typically borrow money to buy properties, and rising interest rates mean that they have to pay more in interest payments.
The Impact on Tenants
The exodus of landlords is having a significant impact on tenants. With fewer properties available to rent, tenants are having to compete for a smaller pool of housing. This is driving up rents and making it more difficult for people to find affordable housing.
What Can Be Done?
There are a number of things that can be done to address the exodus of landlords and the resulting rental crisis. These include:
- Stopping the growth of Short Term rental like Airbnb: The government could introduce regulations to limit the growth of Airbnb. This would help to ensure that more properties are available for long-term rental.
- Introducing rent control: The government could introduce rent control to protect tenants from rising rents. However, this would need to be done carefully to avoid discouraging investment in rental properties, but would be popular with residents who live in areas where “holiday Partying ” destroys their peaceful neighbourhoods..
- Reducing property taxes: The government could reduce property taxes to make it more affordable for landlords to hold onto their properties.
- Providing more affordable housing: The government could build more affordable housing to address the shortage of rental properties.
The Future of the Rental Market
The future of the Australian rental market is uncertain. However, if the exodus of landlords continues, it is likely that rents will continue to rise and it will become even more difficult for people to find affordable housing.