Short-term rentals, including Airbnb and Stayz, could be banned in parts of Sydney amid the city council’s bid to free up housing supply.
The Council of the City of Sydney will look into bans on short-term rental accommodation (STRA) on a suburb-by-suburb basis after councillors backed a motion this week.
The Greens’ motion, passed on Tuesday, means city staff will investigate ways it could impose a ban on STRA and what form it may take, before reporting back on potential next steps.
The proposed ban would only apply to properties that are not used as the owner’s primary residence, and came after the city imposed a 180-day-per year cap on STRA properties last year.
The council will explore potential triggers for the bans to take place, such as the rental vacancy rate falling below three per cent, and how long the prohibitions will last.
The latest SQM Research data showed that, as of March, Sydney’s vacancy rate was 1.1 per cent, down from 1.3 per cent in February.
The motion came amid fears about a lack of housing supply, with Airbnbs dominating inner-city suburbs such as Ultimo, Millers Point, Potts Point, and Darlinghurst.
Greens councillor Matthew Thompson said he and his colleagues had consulted with community groups and housing experts, coming to the conclusion that a cap wasn’t strong enough.
He said the current housing crisis called for a return of supply to the long-term rental market, with renters finding it harder than ever to access affordable housing.
“Since 2021, we’ve seen an explosion of Airbnbs across the city, thousands of homes ripped away as homes for people to live, turned into mini hotels,” he said at the council meeting.
“Increasingly, we’re seeing property investors stacking up to five, ten, 20 or even more properties and renting them out as Airbnbs.”
Deputy lord mayor Jess Miller said it would be “morally reprehensible” to ignore the impact that short-term rentals had on the city.
She took aim at STRA investors with multiple properties that could be used as potential homes, but instead were being utilised as a “commercial basis”.
“We are not able to act upon that because there is no clear definition within the planning system of that status,” she concluded.
NSW Premier Chris Minns said there needed to be consideration of the concurrent impacts of the potential ban on the tourism sector.
“We’ve taken steps in some areas, in coastal towns where there’s a big homelessness issue, or there’s just a complete lack of housing, to intervene, but they’ve been extraordinary interventions,” Minns concluded.
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