It may surprise many people but the "Airbnb Effect" was a global issue well before our favourite pandemic hit the world.

In these post-pandemic years, the controversial question of whether short-term holiday rentals help or hinder the property market - and in particular, the rental market - has only heightened.

And on top of this question have come 10 consecutive interest rate rises in two years and relatively undaunted, high inflation.

Making the short-term holiday rental question even harder to explore and understand is that different industry experts will give you different answers to this issue.

But nevertheless, we're going to take a dive into this issue so take a deep breath and stay with us.

Short-term holiday rentals – to like or not to like?

Short-term holiday rentals - aka Airbnbs, or similar - are most often the Big Bad Wolf for renters.

However, increasingly stressed homeowners biting their fingernails over rising interest rates often adore Airbnbs.

And as we said, industry experts will also have different opinions on this point.

How does the Airbnb Effect affect the property market?

Founded in 2007 in San Francisco and launching in Australia in 2012, short-stay holiday king, Airbnb, is now operating in almost every country on the planet.

NerdWallet likened its extraordinary popularity to the 19th century gold rushes, with the platform enjoying its highest ever revenue and profit in the third quarter of 2022, thanks largely to strong demand and higher daily rates.

"The surging vacation rental industry has caught the attention of real estate investors and entrepreneurs, who have been amassing large portfolios of short-term rental properties to cash in on the boom," NerdWallet's Sam Kemmis said.

Yet even before the pandemic hit - and following Airbnb's major losses in 2019 - there were concerns about its "service on local economics and rental markets".

A Forbes article we read described how a report from the Economic Policy Institute (EPI) in the US in January 2019 found the economic costs of Airbnb may outweigh its benefits:

‘While the introduction and expansion of Airbnb into cities around the world carry large, potential economic benefits and costs, the costs to renters and local jurisdictions likely exceed the benefits to travellers and property owners," the EPI stated in the report.

While admittedly, this report was produced before the pandemic and was based on situations in the US, its findings still remain relatively relevant to Australia in the aftermath of the pandemic.

"The ... potential cost of Airbnb expansion is the reduced supply of housing as properties shift from serving local residents to serving Airbnb travellers, which hurts local residents by raising housing costs," the EPI said.

How does the Airbnb Effect affect tenants?

Lending Loop's sister website, Listing Loop, recently discussed Australia's rental problems.

But we didn't include the Airbnb Effect for the key reason that we believe this issue is one of only several reasons why Australia - and much of the western world - is experiencing rental housing issues.

Yet certainly, most renters would probably point to the Airbnb Effect as a major issue in our rental property market.

The EPI agrees, stating that "Airbnb introduction and expansion in New York City, for example, may have raised average rents by nearly $400 annually for city residents."

The Forbes article we read also points out that "worryingly, around 10% of UK landlords ... are considering moving their private rented properties to the short-term market".

"If every landlord in that 10% does move their properties to the short-term market, up to an estimated 470,000 properties would be removed from the private rented housing supply – around 8.7% of the entire UK rented sector stock," the article also reported.

"This would significantly stretch the already strained housing supply.

"A healthy housing market is the real bedrock of a healthy economy, and the UK housing market is not in great straits at the moment."

The Forbes article also noted that there is plenty of concern around the world that the unregulated Airbnb platform is affecting long-term locals' lifestyles as well as rental and mortgage costs.

Zoning, permits, licencing and legislation issues are also increasingly coming into play with councils and states across the world.

Some cities and towns - including Berlin, New York, Edinburgh and London - have also placed caps and restrictions on the number of Airbnb properties in their areas and the length of time holidaymakers can spend in Airbnb properties.

How does the Airbnb Effect affect tenants?

An Elite Agent article we read from last month quoted the Real Estate Institute of Australia (REIA) as one of the industry experts who are concerned for renters amidst the Airbnb Effect.

The REIA believes Airbnb landlords and homeowners with vacant properties should consider making them available to the many long-term renters hunting for a home.

“Long-term tenants are really struggling, it’s very tough for them to find affordable accommodation,” REIA president Hayden Groves said.

“We desperately need more supply into the market."

Mr Goves adds that with winter around the corner and only some short-term rentals - such as those on the coast - being regularly utilised by holidaymakers, now is an ideal time for Airbnb landlords to assist renters in this way.

How does the Airbnb Effect affect homeowners?

At the same time, many industry experts believe Airbnb and similar short-term rentals are a perfect solution for homeowners as desperate as renters to hold onto their homes - especially those hanging on the edge of the fixed-term "mortgage cliff".

Elite Agent quoted Suburbanite principal Anna Porter as being a top supporter of this reasoning.

Ms Porter believes Airbnb is quickly becoming a "lifeline" for homeowners who, by transforming their home into a full-time or part-time Airbnb property, can pay off their higher mortgages faster and more easily.

“Households struggling with new repayments are turning to Airbnb to boost their income,” Ms Porter told Elite Agent.

"Airbnb can achieve much higher returns (than that of the permanent rental market) for the right property and the right location, helping some people cover their whole repayments.”

Ms Porter said Airbnb landlords simply moved in with family or friends to make their homes available to holidaymakers, or went away on camping trips - anything to "free up peak times and maximise their revenue".

The figures also say a lot when it comes to how many everyday property investors are loving Airbnb.

NerdWallet reports that according to industry analytics firm, AirDNA, short-term rental supplies in the US alone increased 62% between 2020 and 2022.

Short-term rental platform, Made Comfy, believes the Australian short-term rental market generated nearly $4 billion in revenue from 114,601 listed properties in the 12 months to October 2022.

As well, these same stays had an average occupancy rate of 72% with the average daily rate over this period being $244.

Architect website, Arch Daily, concurs somewhat with Ms Porter, with an article last month stating that "(home) owners are seeing the benefits of buying up these homes and renting them out for high-profit margins".

"Opportunistic landlords can pay off their mortgages in just a few days by renting out their homes to visitors," the article read.

However, this same article also looked at rental concerns in and around the Airbnb Effect with renters across the globe being "driven away by the rise of short-term rentals".

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