As short-term rental (STR) popularity continues to grow, housing costs are rising beyond the reach of many people, according to a new report.

The report, by Grounded Community Land Trust Advocacy, found that Airbnb investors returns far exceed traditional property investors, with returns 118 per cent higher across a number of global cities including Berlin, Barcelona, Vancouver, London, LA, Paris and Sydney.

This has led to a situation where local residents are struggling to find stable and affordable housing, the report said, which is having a knock-on effect on the social fabric of communities.

Karl Fitzgerald, managing director of Grounded Community Land Trust Advocacy, said: "As returns rise for Airbnb investors, local residents struggle to find stable and affordable housing, impacting the social fabric of communities and perpetuating inequality."

The report found that in red hot zones such as Berlin and Barcelona, the earnings potential for Airbnb owners was significantly higher, with gross short-term rental earnings 201 per cent and 171 per cent higher than long-term rentals.

This, the report said, has fuelled a surge in the number of active Airbnb listings, which are currently running at a rate of 5.6 per cent per annum.

On a local level, a quick Google of Airbnb properties in Lismore for a week-long stay in early October found 972 places in Lismore.

They varied from rooms to rent with one-owner occupants to farm stays and guest houses or guest suites. Two houses, one in East Lismore is asking $1,432 for the week, while a townhouse in Girards Hill is $1,887.

Mr Fitzgerald said: "The impact of such returns on housing supply shows up in the growth of active listings running at 5.6 per cent per annum. This was guided by a modest 3 per cent income growth across 337,500 STRs. No wonder workers have to pay a small fortune in rent whilst commuting hours to work."

The report's authors have called for a cap on the number of Airbnb listings in order to combat the problem and redirect the profits towards the creation of permanently affordable community housing units.