Push To Convert Sydney Airbnbs Into Rentals For Workers Amid Housing Crisis

Sydney’s deputy lord mayor has called for thousands of short-term rental properties to be returned to the long-term housing market, arguing the move would provide a faster response to the city’s housing crisis than current government housing policies.

According to an article published by the Australian Financial Review, City of Sydney Deputy Lord Mayor Jess Miller said more than 1000 homes operating as full-time Airbnb properties in the local government area could instead house essential workers and long-term tenants.

Miller told the AFR that “built-to-rent already exists”, referring to residential properties being used exclusively for short-term accommodation rather than permanent housing.

The proposal comes amid growing debate over the impact of short-term rentals on Sydney’s housing supply and affordability. Earlier this month, the City of Sydney voted to investigate the feasibility of banning investor-owned short-term rentals in areas with low vacancy rates.

The Guardian reported that some inner-city suburbs, including Millers Point, have experienced significant increases in short-term rental activity, with councillors raising concerns about housing availability for residents.

Greens councillor Matthew Thompson, who introduced the motion, told The Guardian a ban on non-primary residence short-term rentals could return “as many as 5,000 properties to the long-term rental market”.

The NSW government currently imposes a 180-day annual cap on unhosted short-term rentals in Greater Sydney, though critics have argued the rules are difficult to enforce because of limited data on property ownership and usage.

Miller has previously said investors were turning “residential-zoned homes into commercial operations”, while calling for improved state government data collection on short-term rental listings.

The City of Sydney investigation will examine whether additional restrictions or bans could be implemented in suburbs experiencing low rental vacancy rates and high concentrations of short-term accommodation properties.