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Australia: The Australian coastal town of Byron Bay in New South Wales, as well as the wider region of Byron Shire, have begun the enforcement of 60-day annual caps on unhosted short-term rentals.
The legislation has been introduced to combat a growing shortage of housing in the region, with Ballina Greens MP Tamara Smith saying that there was a “critical” need for short-term rental properties to switch to the long-term market and that it “cannot kick in soon enough”.
The regulations will be applied to most of the Byron Shire region, which includes notable destinations such as Byron Bay and Brunswick Heads, although certain precincts that rely particularly on tourism are set to be exempted.
Byron Shire has been heavily affected by riverine and flash flooding in recent years, exacerbating an already significant housing crisis in the region. Skyrocketing rents and cost of living, flood reparation and soaring interest rates have led to unprecedented numbers of evictions and record homelessness rates, which have put an even greater focus on the number of empty homes already sitting vacant.
Smith added that she would closely monitor the effects of the new rental cap and that it could lead to a statewide rollout in the rest of New South Wales if it is deemed to be successful.
Speaking to SkyNews.com.au, Michael Crosby, head of public policy for Airbnb Australia and New Zealand, said that the rental cap would have a deterimental effect on the tourism sector in Byron Shire and Byron Bay due to the choice of “less affordable accommodation options”. He added that night caps, both in Australia and abroad, had “not worked to improve housing affordability or supply” and urged the New South Wales government to consider how to increase affordable housing supply in towns and cities across the state.
Meanwhile in Victoria, the state executive government is set to grant local councils the power to limit short-term rentals by imposing a 7.5 per cent levy on STR bookings from 1 January 2025.
