City of Sydney investigates banning short-term rentals like Airbnb in key suburbs
Consensus Summary
The City of Sydney is investigating bans on short-term rentals like Airbnb in high-demand suburbs such as Millers Point, Darlinghurst, and Surry Hills, triggered when long-term rental vacancy rates drop below 3%. The move follows a council motion passed April 29, 2026, and builds on existing NSW state regulations, including a 180-day annual cap on non-hosted short-term rentals in Greater Sydney. Critics argue the current cap is ineffective, while industry representatives like Stayz claim existing rules are sufficient. Premier Chris Minns has expressed caution, emphasizing the need to balance housing affordability with tourism impacts. The proposal targets areas where short-term rentals are perceived to harm community cohesion and housing supply, with potential time-limited bans of up to two years. Similar restrictions have been implemented in Byron Bay and Busselton, though enforcement challenges remain due to limited data on property usage.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- City of Sydney council passed a motion on April 29, 2026, to investigate banning short-term rentals in specific suburbs when long-term rental vacancy rates fall below 3%.
- The proposed ban would target suburbs including Millers Point, The Rocks, Darlinghurst, Woolloomooloo, Ultimo, Haymarket, Kings Cross, Surry Hills, Potts Point, Chippendale, and Pyrmont.
- NSW state government currently enforces a 180-day cap per year on non-hosted short-term rentals in Greater Sydney, Ballina, and parts of Clarence Valley and Muswellbrook.
- Byron Shire has had a 60-day cap on short-term rentals since September 2024.
- Premier Chris Minns stated he wants to 'understand the concurrent impacts on the tourism sector' before supporting further restrictions.
- Stayz government and corporate affairs director Eacham Curry urged the City of Sydney to refrain from implementing bans, stating existing state regulations are sufficient.
- The City of Sydney has been investigating short-term rental impacts since May 2023.
Points of Difference
Details reported by only one source:
- Greens Councillor Sylvie Ellsmore said the current 180-day cap 'is not working' to address rental housing shortages.
- Deputy Mayor Jess Miller called short-term rentals 'out of control' and requested state government data sharing similar to Western Australia.
- Paul Nicolau from Business NSW argued Sydney lacks enough hotels to support tourism, calling bans a 'misdiagnosis' of the housing crisis.
- Barcelona plans to ban all short-term rentals by 2028, while New York City recently introduced laws requiring hosts to be present for stays under 30 days.
- City of Sydney previously considered reducing the 180-day cap to 60 days.
Contradictions
Conflicting information between sources:
- Article 1 (ABC) states the 180-day cap is in place for Greater Sydney, Ballina, and parts of Clarence Valley and Muswellbrook, while Article 2 (NEWSCOMAU) mentions a 18-day-per-year cap in law, which is likely a typo or misreporting.
Source Articles
Sydney council to investigate banning short-term rentals
A Greens-led proposal passed by the council last night argues the current 180-day cap on short-term rental accommodation is not doing enough to address the rental housing crisis.
Plan to ban Airbnb, Stayz in major city
An Aussie capital is weighing up a ban on short-term rentals offered by companies like Airbnb and Stayz, amid a housing affordability crisis.