Mayor Michael Lyon, Ballina MP Tamara Smith rejoice as Byron Shire set to cap use of short-term rentals at 60-days per year

A 60-day short-term rental cap will be put in place in Byron Shire in a bid to alleviate the worsening housing crisis – but not everyone is convinced it will work. Here’s what we know.

With views like this, it’s no surprise Byron remains one of NSW’s hottest tourism destinations.

The mayor of Byron Bay expects a flood of homes will hit the market in the tourism town once a long-awaited 60-day short-term rental home cap comes into play to ease housing stress.

Mayor Michael Lyon and Ballina MP Tamara Smith have applauded the introduction of the cap from September 26 next year, which means landlords will only be able to rent out holiday homes for 60 days annually, down from 180 days.

It’s hoped the new legislation will free up rentals and alleviate homelessness, though many properties listed online are luxurious and expensive.

Byron is full of luxurious – and expensive – holiday homes.

Prices for Byron rentals have spiralled out of control and survey data in recent years has shown more than a third of housing stock was listed online on Airbnb and Stayz.

Currently, a one-bedroom, one-bathroom unit tucked away in Byron’s industrial area can be secured for $800 per week. A two-bed, two-bath apartment on Jonson St in the CBD is going for $1550 weekly.

Scattered areas in NSW have caps, but none as stringent as the incoming Byron cap.

Byron Shire Council Mayor Michael Lyon said he expected to see landlords offloading properties and more long-term rentals on the market ahead of the change.

Byron Shire mayor Michael Lyon addresses a crowd in the town. Picture: Liana Boss

“This will decrease house prices and rent … When tourism returns in full force there will be regulations in place,” he said.

“We are future-proofing the housing supply.”

Short-term rental behemoths Airbnb and Stayz argue the cap will make little difference because many Byron listings are luxurious and unaffordable for those most in need. They say the rentals bolster the incomes of retirees and mum-and-dad investors.

Cr Lyon disagrees the cap is largely pointless.

“I’m grateful and pleased for the community who has fought hard for regulation of short-term rental accommodation,” he said.

“Protecting local workers and residents is so important and I’m very happy we have been able to achieve this.”

The council proposed a 90-day cap last year, but the state Independent Planning Commission deemed that insufficient and recommended the 60-day cap.

Some areas in the shire will not have the cap enforced and properties with hosts on site will not be restricted, it’s understood.

Ballina MP Tamara Smith, who oversees tourism hub Byron Bay, pushed for the cap to go ahead. Picture: Luke Marsden.

State Ballina MP Tamara Smith, who has been campaigning for regulation, welcomed the cap and said she wanted to see it in place sooner.

“We’ve been pushing for this for a decade and if only it had happened a decade ago we wouldn’t be in this situation,” she said.

“Why we have to wait another 12 months is perplexing. I will be raising it with the (housing) minister to hasten that because the housing crisis is here now.”

Ms Smith was looking forward to details “to see how it will work”.

Byron residents took to social media in droves to celebrate the cap, with most appearing in support and some suggesting tighter regulation.

“I hope this equates to an increase in housing options for people living and working in the area,” Michelle Gleeson wrote on Facebook.