Will stricter rules on short-term rentals alleviate housing market strains caused by rising rents and a shortage of rental properties? Some landlords have converted residential units into year-round short-term rentals, making it harder for long-term renters to find homes. Implementing stricter regulations on platforms like Airbnb could help ease housing affordability issues in some areas. 

Some regions are considering options like imposing a booking levy, similar to Victoria's 7.5% levy, or setting caps on short-term rentals, such as NSW's 60-day cap in the Byron Shire, to reduce their impact on the rental market.

Dr. Laura Crommelin, Senior Lecturer in City Planning at UNSW Arts, Design & Architecture, emphasizes the importance of regulating short-term rentals' impact on rental markets. While short-term rentals aren't solely responsible for housing issues, they do have a significant impact.

Dr. Crommelin believes that short-term rentals are likely taking away properties that could otherwise be available for long-term renting, especially in tourist-heavy areas like Kiama.

Research from AHURI by Dr. Crommelin and the City Futures Research Centre suggests that many Airbnb listings in Sydney and Melbourne are more like commercial rentals than house-sharing.

Short-term rentals can cause various issues for residents, including changing neighborhood dynamics, trust and safety concerns, and problems with party houses.

In New South Wales, hosts are required to register their short-term rental properties, and some areas have a 180-day annual cap on rentals, distinguishing between sharing and commercial letting.

Dr. Crommelin argues that caps should be tailored to local housing market needs, as seen with the 60-day cap in Byron Shire Council.

While tighter caps may not return all short-term rentals to the long-term market, they could boost short-term supply and relieve some rental pressure.

However, it remains to be seen if short-stay levies, like those in Victoria, will impact rental listings.

Dr. Crommelin sees short-term rentals as part of a broader issue of housing equity in Australia. They contribute to a view of housing primarily as a financial asset, which exacerbates challenges for those without access to it.

Addressing housing shortages and affordability issues requires not only regulating short-term rentals but also strengthening renter protections and increasing social housing availability. It's important not to assume that addressing short-term rentals alone will solve all housing affordability problems.