Calls for NSW government to tackle Airbnb ‘ghost houses’

Local councils flooded with Airbnb holiday homes amid a grim housing crisis believe capping the time short term rentals can be leased could be key to fixing the problem. See their proposal here.

Multiple councils across NSW are calling on the new Labor government to introduce legislation to cap short term rental properties like Airbnb to help increase housing supply.

Mayors across the state say the increase in ‘ghost houses’, short term holiday rentals that are empty for much of the year is exacerbating the housing crisis.

Randwick Mayor Dylan Parker, is one of many pushing for a 90-day-cap on short term holiday letting. According to council data 4.4 per cent of all housing stock in the north of the LGA encompassing Coogee, Clovelly, Randwick and Kensington are used solely for holiday letting. This equates to over 1000 fewer rentals in the area.

According to data from Inside Airbnb, there were 15,763 listings of entire homes on Airbnb for the metropolitan Sydney area in March this year.

Houses being turned into short term holiday stays are exacerbating the state’s rental crisis, local mayors say. Picture: Emma Brasier

Mr Parker said the large number of listings was exacerbating the rental crisis and driving up prices.

“I’m 31 and it actually makes me quite cranky … I’m the mayor of this city and can’t bloody afford to live here,” he said.

Randwick Mayor Dylan Parker believes the increase in short term rentals is driving up rental prices.

Last year Byron Shire Council voted in support of plans to introduce a 90-day-cap on short term holiday letting, from the existing 180 days.

This move was blocked by the previous NSW government in December, instead instructing the NSW Independent Planning Commission to review the matter.

Randwick council is one of multiple councils including Snowy Monaro and Central Coast which are closely watching the outcome of the review

Byron Bay is one of the most affected areas with roughly 50 per cent of the town’s rental stock listed as short term rentals.

Byron Bay is in the grip of a major housing shortage.

Byron Shire Council figures show 35 per cent of the LGA’s total housing stock was on either Airbnb or Stayz as of 2019. Byron mayor Michael Lyon believes this number has increased.

Mr Lyon said the housing shortage has seen local businesses unable to fill job vacancies, as their staff have nowhere to live. This includes sectors like childcare and aged care that are running with limited capacity.

“People will say council doesn’t build enough houses but that‘s not the problem, we build plenty of houses but if you don’t get that supply to the right people then there’s a problem.”

Councils have been told by the new Labor government to wait for the outcome of the review before new legislation is considered.

“In the lead up to the election, Labor unveiled a comprehensive suite of reform measures to make renting and housing fair and affordable, and we intend to act to deliver on those as a priority,” a government spokesperson said.

The newly-elected Minns government is waiting until the results of the review come back. Picture: Simon Bullard.

Airbnb head of public policy for Australia, Michael Crosby said changing the cap would not fix the state’s housing crisis.

“While short term rentals generally comprise a tiny proportion of the overall property market, we’re keen to keep finding ways that we can make a positive contribution to this important issue,” he said.

“Short-term rentals also provide a way for everyday people to stay afloat and combat rising costs of living and growing mortgage repayments.”

Automotive warranty specialist Ellie Hopkins found herself forced out of the rental market in Sydney’s east due to lack of affordable options.

Ellie Hopkins has had to move into affordable accomodation in the shire after leaving her Paddington rental and being unable to find affordable accomodation in the area. . Picture: Monique Harmer

After leaving her Paddington unit last year after a substantial rent rise, the 25-year-old managed to find affordable housing in the Shire.

“I’d go to inspect apartments in the east and there would be 60 to 70 people at every inspection,” she said.

“If I had stayed in Paddington 70 per cent of my monthly income would have gone on rent but even in affordable housing I’m still paying 55 per cent.”