Damping Demand for Holiday Rentals Not the Silver Bullet for the Housing Crisis, Research Finds

An attempt by one Australian council to cap the length of time homes can be used as tourist accommodation has actually led to fewer long-term rentals.

An aerial view of Byron Bay, Australia ,on June 20, 2020. Brook Mitchell/Getty Images

Fewer long-term rental listings available and a 7 percent increase in weekly rent—that’s the outcome of an attempt to make more accommodation available for locals by limiting owners of short-term accommodation to renting to tourists and visitors for a maximum of 60 days a year, according to research carried out for Airbnb.

The Byron Shire placed the cap on non-hosted short-term rental accommodation (STRA) in September 2024, in a bid to reduce prices for locals competing with holiday-makers.