Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.

 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate


On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.


RSS 2.0

Airbnb is not responsible for our housing crisis

By Graham Young - posted Thursday, 14 September 2023

The latest alibi for Australia's housing crisis is short-stay accommodation operations like Airbnb and Stayz.

They're an easy target. Any change makes people uneasy, and innovations like these are definitely a change.

Instead of learning to live with them, it's easier to regulate them. And if you regulate them, you can tax them, which you can represent as being mere cost recovery.


So they're a profitable target as well.

There's definitely a housing crisis but the major causes have nothing to do with short-stay accommodation apps.

The crisis exists for both buyers and renters. It is partly a result of house price increases, partly a result of not enough supply for the demand, and partly a result of a rise in interest rates and other costs.

Buyers are frozen out by high prices and can't service the loan required, leaving them in the rental market.

Landlords, faced with rising costs (interest rates on mortgages) and a short supply of housing, are using the opportunity to increase rents.

House prices have risen for two reasons. One is that asset prices go up when interest rates go down. A second is that demand has been growing faster than housing supply.


The reason house prices go up as interest rates fall is that low-interest rates mean you can service a larger mortgage, which means you can pay more for the asset. So prices get bid up.

Until recently, interest rates explained 70 percent of price rises, according to research from the Reserve Bank of Australia (RBA).

However, this relationship has broken down to some extent because house prices have not fallen as far as theory would suggest as the RBA cash rate has moved from 0.1 percent to 4.1 percent.

  1. Pages:
  2. Page 1
  3. 2
  4. 3
  5. All

This article was first published in the Epoch Times.

Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

7 posts so far.

Share this:
reddit this reddit thisbookmark with Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Graham Young is chief editor and the publisher of On Line Opinion. He is executive director of the Australian Institute for Progress, an Australian think tank based in Brisbane, and the publisher of On Line Opinion.

Other articles by this Author

All articles by Graham Young

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Graham Young
Article Tools
Comment 7 comments
Print Printable version
Subscribe Subscribe
Email Email a friend

About Us Search Discuss Feedback Legals Privacy