The New South Wales (NSW) government’s independent planning tribunal has allowed Byron Shire Council to implement a cap on the number of nights a homeowner can rent out a short-stay rental to 60 nights a year. This decision aims to address housing supply shortages and encourage landlords to offer their properties for long-term rentals. The new rules will take effect on September 26, 2024, and will only impact properties rented solely for short-term stays. However, the decision will not affect hosted short-term rentals where the host remains on the premises during the stay.
Byron Shire Mayor Michael Lyon emphasized the significance of housing as the number one issue in the community. The lack of affordability and supply has had a profound impact on the community’s social fabric and economy. The shire experiences high rates of rough sleepers, challenges stemming from floods, a shortage of affordable long-term housing, and businesses struggling to find staff due to unaffordable living conditions. The implementation of measures like freeing up properties for long-term rentals is intended to address these issues by increasing housing supply.
Airbnb Australia and New Zealand’s Head of Public Policy, Michael Crosby, warned that the 60-night cap would have a catastrophic effect on jobs and the local economy. He argued that there is little evidence to suggest that such a cap would free up housing. Crosby emphasized that reducing short-term rental availability would negatively impact events like Splendour in the Grass, Blues Fest, and the Byron Bay International Film Festival, which support thousands of jobs and businesses in the area. He also noted that many properties on Airbnb are not suitable for long-term rentals as they serve as holiday homes or fall under unique categories.
Crosby criticized the Shire’s rules as confusing and advocated for statewide regulation instead of differing rules at the council level. Similarly, Eacham Curry, the senior director of competitor Stayz, expressed concerns that the rule changes would not solve housing supply problems. He believed that these changes would only limit accommodation options for tourists and reduce income for property owners.