Sydney Council to Investigate Banning Short-Term Rentals

As ABC Australia, we report that the City of Sydney council is taking a significant step by exploring a ban on short-term rental accommodations (STRs) such as Airbnb and Stayz. This move, driven by a proposal passed by councillors, signals a growing concern over the impact of STRs on the availability and affordability of long-term housing within the city.

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It's become clear that a cap may not work.

The council's staff will now investigate the feasibility of implementing bans in specific suburbs where the scarcity of long-term rentals is most acute. This could be based on criteria such as the number of STRs outnumbering permanent residences or critically low rental vacancy rates. The current 180-day cap under New South Wales legislation is deemed insufficient by Greens Councillor Sylvie Ellsmore, who argues that a complete ban might be a more effective solution, especially given the difficulties in monitoring compliance with the cap.

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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.

A key focus of the investigation will be differentiating between homeowners renting out their primary residence and investors operating multiple properties as businesses. Councillor Ellsmore points out that the latter scenario, where investors own numerous properties solely for short-term letting, significantly removes housing stock from the long-term market. This practice, she contends, is a major contributor to the housing crisis, as it prioritizes lucrative short-term income over providing much-needed homes for residents.

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The investor issue, what we're seeing more of — people owning five, 10, 20, 30 properties, running it as a business.

From our perspective at ABC Australia, this debate highlights a critical tension between the tourism economy and housing affordability. While Deputy Mayor Jess Miller emphasizes that STRs are 'out of control' and calls for better data from the state government, Premier Chris Minns acknowledges the need to understand the impact on tourism. This situation is unique to Australia's major cities, where the rise of platforms like Airbnb has profoundly reshaped urban living. Unlike in some other countries where such regulations might be less stringent or slower to adapt, Sydney is grappling directly with the consequences, seeking a balance that supports both visitors and its own residents' need for stable housing.

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I would love to have that replicated in New South Wales so that individual councils can access a robust, verified, reliable database so that we can make decisions that are appropriate to our LGA (Local Government Area).