Airbnb has responded to a City of Sydney proposal to investigate tighter restrictions on short-term rental accommodation, as local councillors consider measures including suburb-based limits and potential bans linked to rental vacancy rates.
The City of Sydney motion, backed by a Greens-led proposal, will examine whether short-term rental listings should be restricted in areas where long-term rental supply is considered under pressure, including suburbs where vacancy rates fall below 3 per cent. The review also considers whether the current NSW-wide 180-day cap on non-hosted short-term rentals is effectively returning properties to the long-term rental market.
Airbnb has opposed the proposal, arguing that existing rules already regulate the sector and that further local restrictions could negatively affect residents who rely on short-term rental income.
The company said short-term letting remains an important source of income for some households, with Airbnb describing it as an “economic lifeline” for Sydneysiders.
“Short-term rentals represent a tiny fraction of the housing market and are not the cause of the shortage,” an Airbnb spokesperson said. “The vast majority of listed properties are primary residences and homes used periodically by their owners, making them unsuitable for the long-term rental market. Evidence shows that blunt caps and bans do not solve housing pressures, but they do cut off crucial economic lifelines.”
“We urge the Council to focus on enforcing [their] existing, robust rules and accelerating new housing supply, rather than introducing new red tape that would penalise everyday families and local businesses,” they said.
The City of Sydney is assessing options that could include suburb-level bans on non-primary residence short-term rentals, particularly in high-demand inner-city areas. The proposal would allow restrictions to be triggered where rental vacancy rates fall below a set threshold, with councillors also examining enforcement challenges under the current system.
“Right now, there are thousands of homes in the City of Sydney that are sitting empty in the middle of a housing crisis,” said Greens Councillor Matthew Thompson.
“Property investors are buying homes and renting them out short-term as AirBNBs for huge profits – even if it means those homes sit empty for a lot of the year.”
The NSW Government is also reviewing short-term rental regulations, including the operation of the statewide cap and the scope for local planning controls, alongside the City of Sydney’s investigation into potential changes.
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