Byron Bay locals call for cap on short-term rentals, Airbnb amid regional housing crisis

Renters have been warned it’s nearly impossible to find a home in tourism hub Byron Bay amid a housing crisis and widespread short term letting.

A popular tourist destination, Byron Bay locals are struggling to find affordable lets.

Renters have been warned it’s nearly impossible to find a home in tourism hot spot Byron Bay amid a housing crisis which has sparked a crackdown on short-term rentals and Airbnbs.

Residents of Byron Shire have called on the state government to impose strict caps on the number of properties that can be used as short-term rental accommodation in a move partly aimed at addressing a sharp rise in homelessness in the area.

Sunny Lennon, a 24-year-old renter in the Northern Rivers, said outsiders would find it nearly impossible to find a rental in Byron Bay.

Sunny Lennon, a 24-year-old renter in the Northern Rivers. Picture: Supplied

“Once you’re in the community it’s not too hard to find a place, but if you wanted to move up here, it would be really hard,” she said.

Ms Lennon said rent was noticeably more expensive in northern NSW, claiming it’s “at least $100 a week more than other major cities”.

“Forget about living by yourself in Byron too, it’s completely unattainable,” she said.

Ms Lennon said a lot of people have been living in vans due to the rental crisis.

“The only way I’ve been able to find a place around here is through friends, but I think it’s just really luck,” she said.

Sunny Lennon, a 24-year-old renter in the Northern Rivers. Picture: Supplied

“If you do find a place, it’s like $300 or $400 per week (for one person).”

Ms Lennon said holiday houses being rented out to tourists was not helping.

“But it is a tourist town, so I guess what do we expect?” she said.

Byron residents say the dire shortage of available housing has been exacerbated by successive flood events impacting low supply in the region, forcing locals further inland and away from the area.

According to 2021 census data, the vacancy rate across Byron Bay, Ballina and Lennox Head was 0.9 per cent, despite almost 16 per cent of homes being unoccupied. 

Across the region, long-term rentals declined a further 10 per cent since December 2020 and it is estimated that up to 35 per cent of housing is taken up by short-term rental accommodation.

Byron Shire residents have struggled to find affordable and local housing. Picture: Getty

Byron Bay resident Liz Friend, who runs the Byron Deserves Balance campaign, said residents were being forced out of the region due to a lack of available and affordable housing.

“We’re not against holiday letting, but there has to be some sort of balance,” she said.

“We’ve got a housing crisis and you have massively over-inflated rents in the small supply of housing, which is really affecting the community, and that was even before the floods.”

Liz Friend (right) with her partner Ron said they have talked to Byron workers who are forced to live miles out of town given the lack of available, affordable housing. Picture: Supplied

Ms Friend said she spoke with hotels and restaurants who are struggling to hire permanent staff, paramedic and fire service workers who have been forced to live an hour inland, and even a tradie who had piles of work but couldn’t find a bed.

“We met a carpenter who has plenty of work in Byron, but he’s sleeping in his car because he can’t find anywhere to live,” Ms Friend said.

“We also met a woman who has a cleaning business and said her workers live an hour away from Byron, so she has to pay their travel money to keep them working for her.”

In December, the state government intervened after the Byron Shire Council voted to take matters into its own hands amid the crisis.

Demountable pods in Byron, housing people who lost or had their homes damaged in the 2022 floods. Picture: Supplied

The council had hoped to implement a 90-day cap on short-term properties, reducing the financial incentive to favour short-term holiday letting over long-term rental, but the government intervened and stripped council of that authority.

At the time of the backtrack, NSW government deputy secretary of planning Marcus Ray said the change was the result of “conflicting advice”.

“We acknowledge this may disappoint council, but short-term rental accommodation in Byron Shire is a complex and contentious matter,” he said in a statement.

“There’s been conflicting advice to date on what impact this proposal would have on tourism in the region and whether it would have a positive impact on the long-term rental market.”

Locals, however, want the cap back on the table.

Ballina Greens MP Tamara Smith called for a cap. Picture: Luke Marsden.

“You look at places like London, Berlin, Hawaii – they’ve all got 90-day caps, Amsterdam even has a 30-day cap,” Ms Friend said.

“And they were introduced because short-term rentals were really impacting the local community.”

Ballina Greens MP Tamara Smith said measures to address a shortage of available housing had become a priority.

“We have been through countless consultation processes on this issue and the community has repeatedly said we want homes to live in for residents, workers, and the workers in frontline agencies that serve our communities,” she said.

“Our community was promised the opportunity to reign in unfettered holiday letting in Byron Shire but that covenant has been ripped up, and instead we are being dictated to by vested interests in Macquarie Street.”

When approached, Airbnb declined to comment but pointed to a statement from their Australia and New Zealand country manager Susan Wheeldon.

Ballina MP Tamara Smith. Picture: Suze McLeod

“Airbnb was born during the Global Financial Crisis to help families afford their homes and make ends meet, and we remain committed to empowering everyday people to combat costs of living,” Ms Wheeldon said.

“Airbnb is keen to play a part in helping to provide meaningful solutions and tackle the issue of housing supply and affordability, in collaboration with a broad range of stakeholders.”

A spokeswoman for the Department of Planning and Environment said it was “critical all opportunities to improve rental affordability and availability were explored” and council’s 90-day cap proposal was sent to a Independent Planning Commission, “given its potential impacts on the local economy”.

“The decision to send the proposal to the commission will ensure the government receives independent advice on this complex matter,” she said.

“Particularly as there’s been conflicting advice on what impact this proposal would have on tourism in the region, and whether it would have a positive impact on the long-term rental market.”

“The Government has a statewide housing policy that supports a diversity of housing, including build to rent, co-living, and social and affordable accommodation, and we are also delivering a $2.8 billion housing package.”