Sydney Council Greens Propose Ban on Short-Stay Rentals

The Sydney Council Greens have proposed a complete ban on using investment properties as short-stay rentals to address the city's housing shortage.

This move signals an escalating effort by local officials to prioritize long-term residents over the tourism-driven rental market. If implemented, the ban would remove a significant number of dwellings from platforms such as Airbnb and Stayz, potentially increasing the supply of available long-term leases in a city struggling with low vacancy rates.

The proposal specifically targets investment properties located in suburbs where rental vacancy rates are lowest ^[2]. By restricting these properties from operating as short-term hotels, the Greens party members on the Sydney City Council aim to force a shift back toward permanent residency.

Currently, the state government maintains a cap that limits short-term rentals to 180 days per year ^[2]. The Greens said this existing limit is insufficient to curb the loss of housing stock to the hospitality sector, a trend they said exacerbates the deepening rental crisis in Sydney [1, 2].

The Sydney City Council is now probing the feasibility of such a ban. The investigation will examine how the city can legally restrict the use of residential properties for short-stay purposes and whether such a policy would effectively lower rental prices for the general public ^[2].

Opponents of such measures often cite the loss of tourism revenue and the property rights of owners. However, the proposal focuses on the systemic strain placed on the housing market by investors who prefer the higher yields of short-term guests over long-term tenants ^[1].