This research examines the impact of the COVID-19 pandemic on marginal and informal housing and short-term rental (STR) accommodation to establish any health and housing risks, and investigate any changes to the demand and supply of informal and STR housing during COVID-19.

Informal tenures include share households and other negotiated rental arrangements that offer residents lower levels of protection under rental tenancy legislation. ‘Marginal housing’ describes rental accommodation that relies on shared facilities and/or offers limited tenancy rights, and includes boarding/rooming houses and residential/caravan parks.

The research finds that residents of ‘informal’ and marginal tenures—particularly those living in substandard or overcrowded rental accommodation—may face additional health risks in the context of COVID-19. These risks are largely because of the need to share bedrooms and facilities such as bathrooms and kitchens. 

Case studies of STR in Sydney, Hobart, and Shoalhaven (NSW South Coast) were characterised by rental affordability pressures prior to the pandemic. During the pandemic between March and April (2020) STR listings decreased by 22 per cent in Hobart and by 14 per cent in Sydney, linked to a release of STR units back to the long-term rental market. The research observed that even a modest reduction in Airbnb listings (about 17%) is associated with a significant reduction in rents.

Long-term increases in affordable rental housing are needed to address the underlying problems facing Australia’s lower income renters, particularly those who are homeless or at risk of homelessness. Intermediate solutions such as increased income support for more appropriate housing and assistance with accessing private rental units should be further explored.