Author:Penelope Tuatagaloa, Brian Osborne
Source:Auckland Council Research and Evaluation Unit, RIMU
There is very little available research into the implications of Airbnb for Auckland and this report explains the size and scale of Airbnb in Auckland and its possible impact on the private residential rental market.
Auckland Council technical report, TR2018/001
Main findings for Auckland:
• There were 6105 entire place listings active at some point in the year to 31 August 2017, generating a total revenue of $89.8 million. The median revenue earned per night was $195 for an ‘entire place’ listed on Airbnb. These figures varied considerably across Auckland’s local board areas – Waiheke had a significantly higher median nightly revenue for a two-bedroom entire place ($301) than any other local board – the next highest was Waitematā at $218.
• The Waitematā Local Board area had the most listings with 2052 (34% of total), 57 per cent of which were located in the city centre. Albert-Eden and Waiheke local boards had the second and third highest number of entire place listings, making up 10 per cent and eight per cent of Auckland’s entire place listings respectively.
• The majority had two bedrooms or less (68%) compared to only 26 per cent for total dwellings in Auckland in the 2013 Census. This suggests that Airbnb rentals predominantly cater for individuals, couples and small families with one or two children. It also suggests Airbnb listings could be impacting on this sector of the private residential rental market (units with two bedrooms or less) which may already be pushed for capacity.
• Across Auckland as a whole, there were 12.1 entire place Airbnb listings per 1000 dwellings as at the 2013 Census. In terms of local board areas, Waiheke, Great Barrier and Waitematā were considerable outliers, consistent with their relative strengths in attracting visitors. This also suggests that lower income areas with housing shortages such as in the south and west of the city were less impacted by Airbnb rentals.
• Airbnb entire place listings in Waiheke and Great Barrier have relatively high proportions of two-night stay minimum restrictions (68% and 64% respectively), suggesting the strong degree to which they cater to weekend visitors. In contrast, the five southernmost local boards have the highest proportions of listings with no minimum stay restrictions.
• The number of Airbnb entire place listings in Auckland increased significantly over the 12 month period ending 31 August 2017, from 2408 to 6105 (a 154% increase). Waitematā Local Board area experienced a similar growth rate during this period (157%), whereas Waiheke experienced a more modest 67 per cent increase. Of interest is the strong percentage growth of entire place listings in some suburban areas, which suggests Airbnb entire place listings are expanding out into the suburbs in addition to more traditional visitor and tourist locations.