Airbnb regulations in New Zealand. How is neoliberalism affecting the housing crisis?
“We are not against tourism, but we are against the negative consequences that uncontrolled tourist accommodation can have on our housing market and the overall well-being of our citizens”. Ada Colau.
Short-term rental crisis.
The global phenomenon of short-term rentals facilitated by platforms like Airbnb has brought both convenience and challenges to cities around the world. While some cities have taken bold steps to regulate this burgeoning industry, others seem to be following a path influenced by neoliberal economic policies. Will explore the different approachs to this problem while trying to understand the impact of Airbnb regulations on New Zealand housing.
Barcelona advocates for stronger regulations for Airbnb.
Barcelona, once a poster child for overtourism, embarked on a transformative journey to redefine its approach to tourism. The catalytic moment came in 2015, with the emergence of a new political party in local government. Following years of popular protests against the negative impacts of mass tourism, the city initiated a conscious plan to address the issue.
The result of this effort was the groundbreaking decision in 2021 to ban short-term private room rentals. This move signaled a determination to prioritize the needs and well-being of local residents over the unchecked growth of the short-term rental industry. The ripple effect of Barcelona's decision was felt in other major cities like Paris, Amsterdam, and even New York City, where efforts to regulate short-term rentals gained momentum.
New Zealand's neoliberal approach.
In stark contrast to Barcelona's proactive stance, New Zealand's short-term rental compliance has raised citizen concerns. Airbnb legal requirements in New Zealand benefit the platform rather than the locals. So far, all the cases that the Environment Court has taken have ended with favourable results for Airbnb.
A recent example is the case of the Queenstown Lakes District Council (QLDC), which attempted to regulate Airbnb listings in 2017 by proposing limits on the number of days properties could be rented out. However, in February 2023, the Environment Court ruled against the Council, favoring Airbnb's interests. This decision highlighted a growing tension between citizens' demands for livable cities and the platform's economic interests.
While Airbnb accuses QLDC of wanting to install a “Nanny State” it also holds a fight against Christchruch’s Council. This time Airbnb has appealed Christchurch City Council’s new house rules. The new norm stands that people who rent out properties in residential areas must obtain a resource consent if the property was rented out for more than 60 nights a year with up to 12 guests. Holding a big frown, the platform claims that new rules are “complex, inefficient and ineffective”. Airbnb said the new rules “imposed an inappropriately high burden”. We are talking about a company whose gross profit for the twelve months ending March 31, 2023, was $7.144B, with a 33.54% increase year-over-year. Which “high burden” has more value? The one of a family living in a hostel or the one that Airbnb claims to suffer?
The future rental market in New Zealand. Protecting homes from neoliberalism.
New Zealand is suffering a resurgence of neoliberal economic ideologies where any attempt to regulate big corporations is met with accusations of stifling the "freedom of the market"?
The shift towards neoliberalism has the potential to erase basic rights, particularly in the realm of housing. As citizens raise their voices for improved living conditions and more equitable access to housing, the role of governments in balancing corporate interests with public welfare becomes crucial.
The divergent paths taken by cities like Barcelona and the approach that New Zealand is having regarding the regulations of Airbnb offer valuable insights into the ongoing struggle between economic growth and citizens' rights. While some cities are bravely reimagining their relationship with tourism and the short-term rental industry, others risk becoming casualties of neoliberal ideals that prioritize corporate interests over community well-being.
In order to maintain cities and towns where people are not expelled, thoughtful discussions about the role of government, the responsibilities of corporations, and the fundamental rights of citizens must occur. In the ongoing development of subdivisions in New Zealand, finding the right balance is key to building cities that are not only economically prosperous but also inclusive, livable, and sustainable for everyone.
