2022-11-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                               14 NOVEMBER 2022


Other than the Low Density Residential zone, Noosa Plan 2020 currently allows for short term
accommodation of an entire dwelling throughout Noosa Shire, in residential zones, rural residential
and rural zones, major centres, local centres and parts of the district centre zone.
However, since the commencement of NP2020, there has been a global pandemic and national
housing crisis, with record low rental vacancy rates and significant price increases in the rental and
purchase markets. Small affordable dwellings for key workers, particularly those supporting the
tourism and hospitality industry, and the older population as well as affordable family homes are
an unmet housing need in Noosa Shire.
This has reached crisis point with many businesses unable to secure staff due to affordable
accommodation shortages and long term residents having to leave Noosa to find housing
elsewhere or seeking refuge in temporary accommodation.
The proportion of Noosa Shire residents either not in the workforce, or earning their income outside
the Shire is relatively high, as is the level of home ownership. These elements also contribute to
the shortage of permanent rental accommodation for workers.
Whilst Covid-19 created unique circumstances for the housing market and there is a national
housing crisis, the legacy planning issues and the current provisions within NP2020 contribute to
the housing situation in Noosa Shire.
The community have been very clear in consultation on various plans and strategies that short
term accommodation is having a significant impact on the sense of community, housing supply
and affordability as well as residential amenity. The long term security in housing supply and
housing affordability has become the biggest issue facing Noosa Shire residents.
It is also considered that Noosa has begun to overreach its carrying capacity, particularly during
tourist peak periods and weekends, with road networks, open space, Noosa River and Main Beach
often at full capacity, with negative impacts associated with this being experienced by residents
and visitors.
Since the April 2020 Tourism Carrying Capacity Analysis was undertaken, there has been an
increase in the number of dwellings being used for short term accommodation, despite the impacts
of COVID-19 throughout the last 2 years; the high demand for permanent rental properties; the
introduction of the short stay letting and home hosted accommodation local law; and changes
made by NP2020 making short term accommodation in the Low Density Residential zone an
inconsistent use.
5,265 dwellings are currently identified as being used for short term accommodation across Noosa
Shire, the highest concentration in the coastal urban area between Noosaville and the coastal
stretch to Peregian Beach, with 31.6% of dwellings used for short term accommodation.
Significantly, 52.7% of dwellings are used for short term accommodation in Noosa Heads, 33% in
Sunshine Beach and 26.4% in Noosaville.
Overall, the use of dwellings for short term accommodation grew by 307 dwellings or 5.7% over
the 2 year monitoring period. Given past growth trends, the use of dwellings for short term
accommodation is likely to continue to grow if left unregulated.
However, the true number of dwellings with use rights for short term accommodation is much
higher, with the majority of all multiple dwellings having use rights for short term accommodation.
Therefore, continued growth in dwellings converting to or being developed for short term
accommodation is of high concern for current and future housing supply, particularly within
residential zones intended for permanent housing supply.
Growth in other forms of visitor accommodation, as well as short term accommodation, will also
come from designated visitor only Tourist Accommodation zoned land, at the exclusion of
residents. At the time of writing this report, around 345 hotel rooms, 15 luxury villas and 16 eco
cabins are either pending a Council decision or at the pre-application stage.
Whilst tourism peaks may see high demand for short term accommodation and supply being taken
up with high occupancy rates, latent supply exists throughout non-peak periods, with AirDnA

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