Airbnb‑style stays could be outlawed in parts of Australia’s biggest city as councils nationwide race to free up scarce rentals.
City of Sydney is set to investigate suburb‑by‑suburb bans after councillors backed a motion this week to ban short-term rental accommodation, such as Airbnb and Stayz, from parts or all of its local government area
Council staff will map options for prohibiting short‑term rentals in suburbs where short‑stay listings outnumber long‑term rentals, or where vacancy rates are especially tight.
Currently, New South Wales legislation imposes a 180-day cap on short-term rentals within Greater Sydney.
MORE NEWS
Aus investor profits from homes most buyers won’t touch
Aussies flee housing market for overseas bargains
‘Dehumanised’: Renter fights invasive inspection
However, Greens Councillor Sylvie Ellsmore, who spearheaded the proposal, argues this measure is proving ineffective.
“It’s become clear that a cap may not work,” Cr Ellsmore told 702 ABC Sydney.
“It’s quite hard to work out if someone’s been in the Airbnb for 31 days or 29 days, and that it may be more appropriate to do a ban altogether for suburbs, or the whole LGA.”
City of Sydney will investigate implementing bans on short-term rental accommodation in specific suburbs.
The Greens-led initiative suggests triggering a ban when the rental housing vacancy rate drops below three per cent.
City of Sydney suburbs with current vacancy rates below 3 per cent include Redfern (0.9 per cent), Darlinghurst/Surry Hills (1.2 per cent), Woolloomooloo/ Elizabeth Bay/ Rushcutters Bay (1.3 per cent), Paddington (1.5 per cent), Glebe (1.6 per cent), Pyrmont (1.8 per cent), and
Camperdown (2.3 per cent).
Greens Councillor Sylvie Ellsmore.
“We need to start thinking about the difference between whether someone’s trying to Airbnb the house, the home that they live in, or as an investment property,” Cr Ellsmore said.
“The investor issue, what we’re seeing more of – people owning five, 10, 20, 30 properties, running it as a business.
“Because they can make so much money short-term renting, they’re taking properties off the market that used to be someone’s home.”
Stayz corporate affairs director Eacham Curry told the ABC that bans, caps and guest limits won’t fix housing pressures and risk undermining local economies.
He backed consistent, fit‑for‑purpose rules set at state or territory level, arguing fragmented local regulation adds cost and complexity.
The Greens-led proposal suggested a ban on short-term rentals when a vacancy rate for rental housing dropped below 3 per cent.
Deputy Lord Mayor Jess Miller also conceded short‑term letting was “out of control” but added that council struggled to identify a short-term rental from a primary residence.
She called on the NSW Government to share verified short‑stay data with councils – similar to arrangements in Western Australia – so decisions can be better targeted.
Premier Chris Minns said he hadn’t seen the detail of the proposal and wanted to weigh the tourism impacts alongside housing.
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
English (US) · 