Airbnb Backs Stricter Short-Term Rental Regulations in New South Wales: Tackling Housing Affordability and Boosting Regional Economies

Published on December 10, 2025

As short-term rental platforms like Airbnb continue to play a crucial role in the tourism sector, they face increasing pressure from governments around the world to implement fair and sustainable regulations. Airbnb has expressed its support for such regulations, particularly in New South Wales, where the platform is working with the local government to ensure that a robust framework is in place. These efforts aim to balance the benefits of short-term rentals with the need for housing affordability and to promote economic growth in regional areas.

Airbnb’s Commitment to Fair and Sustainable Regulations

Airbnb has long championed the idea of evidence-based and sustainable regulations in the short-term rental industry. The company remains dedicated to working closely with the New South Wales government to ensure that these regulations are not only effective but also fair for hosts and guests alike. The goal is to foster a regulatory environment that provides clarity, promotes responsible hosting, and ensures that communities benefit from the influx of tourists without experiencing negative consequences, such as rising housing costs.

In New South Wales, short-term rentals have become a vital part of the state’s economy. According to Oxford Economics, Airbnb hosts contributed $6.6 billion to the Gross State Product (GSP) in 2024 alone, generating more than $2.2 billion in wages and supporting over 32,000 jobs. This economic contribution extends beyond major urban areas, with over 33% of Airbnb guests’ accommodation spending occurring outside the largest cities. This dispersal of tourism has provided a significant boost to regional economies, offering flexible and diverse accommodation options to visitors and encouraging the development of local businesses.

However, despite these positive contributions, concerns have been raised about the potential impact of short-term rentals on the housing market. Airbnb has continued to advocate for a balanced approach that ensures the long-term sustainability of both the housing market and the short-term rental sector.

Scrutiny Over Housing Affordability and the 60-Day Cap

One of the main points of contention regarding short-term rentals is their impact on housing affordability. In regions like Byron Bay, the introduction of a 60-day cap on short-term rental accommodation (STRA) was expected to help alleviate the housing crisis. However, independent research from Frontier Economics has shown that these measures have not achieved the desired results. The 60-day cap, which limits the number of days a property can be rented out for short-term stays, has failed to increase the number of long-term rental properties available in the area.

In fact, the opposite effect has occurred. Despite the cap, the availability of long-term rental properties has continued to decline, and rental prices have risen to their highest levels. In Byron Bay, the average weekly rent has increased by 7% year-on-year, from $1,112 to $1,193. This rise in rental prices underscores the need for more effective measures to address housing affordability while maintaining the benefits of short-term rentals.

Airbnb has been vocal in its support for revising the current regulations to ensure that they have a more positive impact on the housing market. The company has recommended a series of changes, including greater transparency through the regular publication of registration data at the local government level and increased resources for local governments to help enforce the regulations effectively. Airbnb also advocates for a more flexible approach, recognizing that the current day caps have had little to no impact on increasing the availability of long-term housing stock.

Enhancing the Regulatory Framework for Better Outcomes

To address these challenges and support the broader goals of the New South Wales government, Airbnb has proposed several recommendations to improve the regulatory framework. These suggestions focus on transparency, community engagement, and improved enforcement of existing regulations.

For example, Airbnb has called for regular publication of registration data at the local government level, which would provide more visibility into the short-term rental market and help identify trends and areas that require attention. Additionally, Airbnb has recommended that local governments receive increased resources to help them enforce the regulations and ensure compliance.

Another important recommendation is to establish a system that allows hosts to offer their properties during emergencies or natural disasters, providing a valuable resource to communities in times of need. This would not only benefit local residents but also demonstrate Airbnb’s commitment to supporting communities in more meaningful ways.

Airbnb’s Role in Dispersing Tourism and Supporting Regional Economies

Beyond the regulatory challenges, Airbnb continues to highlight the positive impact that short-term rentals have on regional economies. Every year, Airbnb hosts welcome millions of guests to New South Wales, helping to distribute tourism away from urban centres and into smaller towns and regional areas. This dispersal has been especially beneficial for local businesses and communities that rely on tourism for economic growth.

In addition to the financial benefits, Airbnb has helped to create a more diverse and flexible accommodation market. Short-term rentals provide a wide range of options for visitors, from budget-friendly rooms to luxury properties, making it easier for people to find the right accommodation to suit their needs. By supporting local communities, Airbnb has played a key role in creating new economic opportunities for small businesses and providing a boost to regional tourism.

The platform’s impact extends beyond just accommodation. It also supports local businesses, including restaurants, shops, and tour operators, who benefit from the increased foot traffic that comes with a diverse array of visitors. This ripple effect helps strengthen the local economy and create a more sustainable tourism model.

Global Support for Short-Term Rental Regulations

While Airbnb’s focus has largely been on New South Wales, the company’s support for fair and sustainable regulations extends to other regions facing similar challenges. In Spain, for instance, new regulations require short-term rental properties to register with a unique number before being listed on digital platforms. These rules aim to improve transparency and help local governments better track short-term rental activity. Similarly, in cities like Paris, stricter regulations are being implemented to limit the impact of short-term rentals on housing availability.

In Greece, new regulations that took effect in October 2025 require short-term rental properties to meet certain standards, such as proper ventilation, fire safety measures, and hygiene certification. These regulations are part of a broader effort to ensure that short-term rentals meet safety and quality standards while helping to protect long-term housing availability.

Conclusion: Balancing Regulation with Economic Growth

The future of short-term rentals lies in finding a balance between regulation and the need for economic growth. Airbnb’s collaboration with the New South Wales government and other authorities around the world reflects the platform’s commitment to creating a fair, transparent, and sustainable regulatory framework. By supporting regulations that promote responsible hosting and ensure housing affordability, Airbnb aims to continue contributing positively to local economies while addressing concerns about housing shortages and overtourism.

As governments around the world take a more proactive approach to regulating the short-term rental market, Airbnb remains dedicated to working with regulators to ensure that short-term rentals continue to provide value to hosts, guests, and the broader community. With a focus on improving transparency, enforcement, and community engagement, Airbnb is poised to help shape a more sustainable future for short-term rentals.