Greens councillors in Sydney are pushing for a 90-day annual cap on short-term rentals like Airbnb, aiming to ease the city's housing crisis. The proposal comes as data shows vacancy rates as low as 1% in some inner-city suburbs, with short-term rentals blamed for reducing long-term housing supply.
In Millers Point, a historic neighbourhood near the Harbour Bridge, short-term rentals have transformed the area. Residents report that every second terrace has a key-safe, and a local kindergarten closed due to a lack of children. Cormac Champion, a resident, says he has seen about 20 families leave, with rents rising sharply as properties become holiday lets.
The City of Sydney has passed a motion to investigate banning short-term rentals where the host does not live on the property. Greens councillor Matthew Thompson, who brought the motion, says a ban could return up to 5,000 properties to the long-term rental market. He favours a de facto ban like those in Barcelona, Amsterdam, and New York, arguing that caps are hard to enforce.
However, deputy mayor Jess Miller warns that enforcement would be difficult without state government changes to the short-term rental register. Currently, the council cannot determine if a property is a primary or secondary residence. The proposal follows a similar move in Byron shire, which capped short-term rentals at 60 days per year.
Murray Cox, founder of Inside Airbnb, supports restrictions, saying vacancy rates below 5% constitute a housing emergency. He argues that cities should not cannibalise housing markets for cheaper travel options. The Greens' proposal aims to prioritise housing for residents, students, and the elderly over tourism.
