The changes will come into effect on September 26 next year,following a 12-month transition. The government insists it will not pursue similar policies in other parts of the state.
Housing crisis laid bare
The housing crisis in the Byron Bay Shire is particularly acute. A count this year of people on the street found 300 experiencing homelessness,a 117 per cent increase on the previous year.
Byron Shire has 2280 short-term properties. They account for 97 per cent of unoccupied homes (homes that,during the census,were not occupied). Unoccupied homes make up 13.9 per cent of Byron’s housing supply.
“It will make a huge difference[in Byron Bay],” Byron Bay Mayor Michael Lyonsaid when the policy was first recommended. “Permanent residents are more beneficial to the economy as a whole.
“They are there 365 days a year,spending money more broadly and doing jobs that might not otherwise be done.”
Amy Hains,acting chief executive of Homelessness NSW,said the policy was a step in the right direction,but a lack of social housing was a major long-term issue.
“The rate of social housing in Byron Bay ... is 1.8 per cent,the average is 4.6 per cent in NSW,” she said. “The modelling shows it needs to be around 10 per cent to be a proper safety net for the community.”
People who are eligible for general social housing in the region have to wait an average of four-and-a-half years to find a home,she said.
‘A game changer for the suburb’
Owners are currently allowed to lease their properties for up to 180 days a year. But with their returns set to be severely cut,the government expects some to move their properties to the full-time market.
“You’re going to see a massive transition from Airbnb rentals to full-time rentals,” said Cherie Barber,a renovation expert and owner of five Airbnb properties in the shire. One of her properties is in a tourist zone,but she anticipates some others may be affected.
“The returns are too small. They’re going to be forking out more money from their properties every single month.”
She says she supports the caps – though she thinks the 180-day cap is better – because the change will stabilise the community.
“It’s going to be a game changer for the suburb ... It’s going to build a more solid community in Byron and surrounds,where businesses can rely on certain trades and[residents],” she said.
“It’s good for the residents,but it’s bad for investors.”
Airbnb expressed disappointment about the cap,saying short-term rentals weren’t the cause of the area’s housing crisis.
“A cap of 60 days goes well beyond even what the council had long been advocating for,and will have significant repercussions on the local visitor economy,harming jobs and small businesses,” the company’s head of public policy Michael Crosby said.