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Byron Bay: Airbnb Rental Cap Sparks Housing Debate
24 Nov
Summary
- Byron Bay imposed a 60-day cap on short-term rentals a year ago.
- Average weekly rent in Byron Bay has risen to $1193, a seven percent increase.
- Airbnb disputes the council's data, claiming only 11% of properties are STRs.
A year-long experiment with a 60-day cap on non-hosted short-term rentals in Byron Bay has failed to ease housing pressures, according to Airbnb. The coastal town, known for its scenic beauty, implemented the cap in September 2024 to combat escalating property prices and a housing shortage. Airbnb contends that such measures distract from the fundamental need for increased housing supply.
Research commissioned by Airbnb suggests that rental prices have reached unprecedented levels, with the average weekly rent climbing by seven percent year-on-year to $1193. This figure significantly exceeds Sydney's median rent of $780. Airbnb also challenges the data used by the Byron Shire Council, asserting that short-term rentals constitute only about 11% of total properties, not the 35% cited by the council.
Local officials, however, maintain that the housing crisis stems from a decade of gentrification and that curbing holiday letting is essential. While acknowledging that a year might be insufficient for significant change, they argue that without such caps, entire neighborhoods could become dominated by short-term accommodations. The debate highlights a complex conflict between tourism economics and local housing affordability.
