REINSW CEO Tim McKibbin says more homes the only fix as council weighs up owner tax

In September, the Riverina region scored the worst vacancy rate in the state with just 1 per cent of homes on the rental market available to renters.

More specifically, the latest available data for Wagga shows the city had an estimated vacancy rate of 1.2 per cent in March.

IN OTHER NEWS

Median rental prices across the Wagga local government area have risen across all types of housing since 2020.

But in some good news, the pace of rental price growth appears to have eased somewhat in recent months.

In June, the median rent for two-bedroom houses was up 4.4 per cent from last year, while three-bedroom houses posted a 6.7 per cent rise and four-bedroom places increased by 7.1 per cent.

Meanwhile, median apartment rental prices jumped 9.4 per cent across this period.

Meeting with local real estate agents at the Wagga RSL on Thursday, REINSW chief executive Tim McKibbin briefed them on key issues affecting the market.

These included latest changes to the regulatory environment, recent amendments to the state's Residential Tenancies Act, technology advances and how to meet the consumer expectations, and the local market for renters and owner-occupiers.

Mr McKibbin said the current environment is making it difficult for home owner-occupiers, however he said it is even harder for renters.

But, in a bid to help renters out and give them more rights, he said the government is taking these away from home owners, and forcing them out of the rental market, into other markets such as market housing like Airbnb accommodation.

It comes as Wagga councillors prepare to consider a levy on short-term accommodation providers across the LGA at its fortnightly meeting next week.

On Monday night, councillors will consider a recommendation not to impose a fee or levy on short-term accommodation providers as the state government is set to introduce a similar scheme, which has already been implemented in Victoria.

The report to councillors noted any such levy would have a "limited impact" on housing supply or yield and could have "unintended consequences" for other sectors of the local economy.

It has also been recommended the council writes to the state government calling for a "rapid increase in public housing in Wagga" and other efforts to ease the housing crisis affecting the region.

It comes as the council advances plans for the Tolland Renewal Project, which is expected to deliver about 500 mixed-tenure homes, with around 180 homes for social housing.

Mr McKibbin said "punishing" short-term accommodation providers with more taxes is "the wrong approach".

He believes the reason people are getting out of the residential market and going into the holiday and short-term market is because it's the "more attractive option".

Mr McKibbin said the government has to work on this and instead make the residential market the best option if they are to "retain investment" there.

He said the "ridiculous approach" of taxing accommodation providers in the tourism sector could even reduce the amount of rooms for tourists.

"The government is using punitive strategies, which are simply responding to the problem, not the symptom, when the issue is we don't have enough property," he said.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: