2022-11-14 GC Agenda - Item 4 - Attachment 2 - Appendix 13 to Attachment 1

NOOSA SHORT STAY ACCOMMODATION ECONOMIC & SOCIAL ASSESSMENT


IMPACT ASSESSMENT
Economic Impacts
Analysis of visitor, short term rental dwelling and general property market data highlights that the local economy
has bounced back very strongly with visitor nights in short term rentals having returned to pre-COVID-19 levels.
There is insufficient evidence to suggest making short term accommodation an inconsistent use in LDR zones
within NP2020 has had any impact on the performance of the local economy, with visitation to Noosa outperforming
the broader SEQ experience. Further, there is insufficient evidence to suggest making short term accommodation
an inconsistent use in LDR zones within NP2020 has had any impact on the availability of dwellings for either short
stay accommodation or permanent rental.

More broadly, the increasing allocation of housing stock for use as short stay accommodation over the past decade
has resulted in a constrained operating environment for local businesses with an imbalance between the demand
for local workers and the supply of local workers across all sectors of the economy impacted by the lack of available
and affordable housing. Making short term accommodation an inconsistent use in LDR zones within NP2020 will
ensure that no additional housing within LDR zones will be allocated to short stay accommodation with any new
stock available for residents and workers to support improved functioning of the local economy.

Social Impacts
There is a significant impact on traditional residential neighbourhoods from the increased level and type of activity
associated with short stay accommodation, much of which is focussed on noise disturbances, amenity, safety and
security. Most of the impacts relate to resident health and residential amenity, with amenity referring to the ability
for residents to enjoy their homes in a peaceful manner with feelings of community and safety.

AEC’s Cost Benefit Assessment prepared for Council’s Short Stay Letting and Home Hosted Accommodation Local
Law identified the costs and benefits associated with the controls included within the Local Law to better manage
the adverse effects on predominantly permanently occupied residential communities from the increased utilisation
of residential properties for short stay accommodation. It was identified that 10,610 residential properties consisting
of an estimated 26,525 persons would benefit from the Local Law. The quantified resident health and residential
amenity benefits were estimated at $9.56 million per annum and the benefit-cost ratio within Noosa was in excess
of 30 (a value greater than 1 indicates the benefits outweigh the costs). Residents were also identified as having
an enhanced feeling of safety and security as a consequence of the Local Law.

The Local Law has in part dealt with the residential amenity and liveability issues associated with short stay
accommodation occurring within residential zones. The most significant economic and social issue arising out of
the increasing allocation of the housing stock to short stay accommodation is now about ensuring (and securing)
sufficient housing supply to meet the needs of the local economy and community which are being significantly
constrained.

Potential Amendments
While making short term accommodation an inconsistent use in LDR zones within NP2020 will ensure no future
additional supply is allocated to short stay accommodation within LDR zones, housing pressures remain. In
consideration of rising property prices and increased rents, any additional measures to help mitigate against any
further deterioration in housing availability and affordability for residents and workers would be beneficial.

Council is proposing to extend making short term accommodation an inconsistent use in Medium and High Density
Residential and Rural and Rural Residential zones to reduce the increasing pressure on the housing stock from an
increasing number of dwellings being allocated to short stay accommodation.

There is a compelling economic and social argument for this proposal given the identified constraints placed on
the local economy and community from a lack of available and affordable housing for residents and workers.
Securing future housing supply within these zones – in addition to LDR zones – for residents and workers (versus
short stay accommodation) will ease some of the pressures that presently exist. Without further action, it is unlikely
that the identified imbalance in the housing stock will be appropriately addressed and the economy and community
will continue to be constrained.



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