Sydney to consider new Airbnb crackdown
The City of Sydney Council will this week debate a motion that could see a major crackdown on Airbnb and other short-term rental services across the city, with a proposal to introduce a 60-day annual cap on unhosted, short-term rentals. The move, led by the Sydney City Greens, aims to address the mounting housing crisis by pushing property owners to return homes to the long-term rental market.
The proposal comes on the back of growing concerns that thousands of homes are sitting empty or are being used primarily as short-term holiday lets, even as rents soar and vacancy rates plummet. The Sydney City Greens argue that suburbs like Darlinghurst, Potts Point, Paddington and Millers Point have become hotspots for Airbnb listings, with entire streets dominated by properties used for short stays rather than homes for local residents.
“Right now, there are thousands of homes in the City of Sydney sitting empty in a housing crisis. These could be homes for families, a roof over the head for those wanting to build a life in our community,” the group said in a statement. “Property investors are buying houses and renting them out short-term for huge profits – even if it means these homes sit empty for a lot of the year.”
The push for stricter rules is modelled on a similar policy introduced by Byron Shire Council, which last year implemented a 60-day cap on unhosted short-term rentals after a well-publicised exodus of essential workers and families who could no longer find affordable accommodation. In Byron, the cap is intended to force property investors to choose between operating a short-term rental business for only two months each year, or making their homes available for longer-term tenants.
Advocates say this kind of limit has the potential to return thousands of homes to Sydney’s rental pool, with the Greens claiming that more than 5,000 properties could become available to Sydneysiders if the cap is adopted. “A 60-day cap forces property investors back to the long-term market, meaning more homes are available to people who want to live in our neighbourhoods and build a life in our community,” the statement reads.
The motion, which will be debated at the next council meeting, follows a petition already signed by more than 250 residents. The debate comes amid a broader national conversation about the role of short-term rentals in exacerbating Australia’s housing crisis, with other councils—including those in regional tourism hotspots—also considering or implementing similar measures.
If passed, the City of Sydney would join Byron Shire and a handful of other local governments in setting strict annual limits on short-term rentals, a move likely to be welcomed by renters and housing advocates but fiercely opposed by short-stay operators and property lobby groups.
The council meeting (set for later this month) is expected to draw strong opinions on both sides of the debate, with questions remaining about how such a cap would be enforced and whether the measure will have the desired effect in Sydney’s complex property market.