2022-11-14 GC Agenda - Item 4 - Attachment 1 - Short Term Accommodation Monitoring Report 2022

3.3.1.4 Rental market


Median rents
For the 12 months ending 30 September 2021, the median weekly rents produced by the
Residential Tenancies Authority (RTA) included in the HNA2021 indicated Noosa’s median
weekly rent for a 1 bedroom unit was similarly priced to the rest of the Sunshine Coast and
Queensland. As the number of bedrooms increased however, the gap widened. The HNA2021
stated:
       While median rents in Noosa Shire have typically been above State average over the
       last decade the gap has widened. … runs a comparison of median rents for a three
       bedroom house in Noosa Shire compared with the State.
Median weekly rents increased significantly in the 4 year time period since the original
HNA2017 was prepared. The Table 43 extracted from the HNA2021 contained in Appendix 10
show the change in rental prices for each housing type with the following key differences in
weekly rents across all localities in Noosa Shire between June 2017 and September 2021.
      1 bedroom unit was $305-$340 per week in 2017 increasing to $385-$450 in 2021.
      2 bedroom unit was $320-$420 per week in 2017 increasing to $480-$580 in 2021.
      3 bedroom house was $413-$583 per week in 2017 increasing to $530 - $998 in 2021
      4 bedroom house was $490-$695 per week in 2017 increasing to $700-$950 in 2021.
The HNA2021 compared these rental costs with income, stating:
       These figures have increased substantially and are particularly high compared to the
       income of employment in Noosa Shire. As an example at Census 2016 the median
       total personal income in Noosaville SA2 for workers aged 15 years and over was
       $41,491 per year (approx. $798 per week).
       63.3% of workers were on less than $1,000 per week. Even considering potential wage
       increase since 2016, this would make $480 for a one bedroom unit unaffordable and a
       three bedroom house would cost almost the median income. This has considerable
       implications for one or even two income households…


Rental vacancy rates
During the first half of 2021 the HNA2021 identified very low numbers of rental properties being
available, with less than 15 properties advertised for rent below $500 per week with a high
proportion being one bedroom units or granny flats. One of the impacts on the rental market
identified in the HNA2021 was internal migration, stating:
       In January 2021 REIQ reported the two most popular destinations for interstate
       migration were the Sunshine Coast and Gold Coast respectively. “Citing liveability,
       affordability and lifestyle along with economic opportunities, education and an inclusive
       society, the Sunshine Coast may be drawing big crowds but its rental market hasn’t
       shifted in months, firmly gripped at 0.3%. Many areas such as…Noosa (0.4% rental
       vacancies) and Sunrise Beach (0.5%) have continued to tighten marginally over the
       last three months”.
       … The surge in demand reportedly fueled by interstate migration and returning expats
       as a result of Covid-19 and lockdowns in southern capitals…At the time Briggs & Mortar
       were doing the previous Housing Needs Assessment (2016-2017) there was a vacancy
       rate of around 2% or more.
Section 2.9.4.1 and Appendix 8 discussion on COVID 19 contains a number of rental vacancy
graphs extracted from the HNA2021 for postcode locations in Noosa Shire. Significantly, the
statistics show a strong relationship between demand for short term accommodation and the
availability of permanent rental properties.
                                                                                          pg. 93
Noosa Council Monitoring Report 2022/23