Airbnb has strongly criticised the City of Sydney’s proposed restrictions on short-term rentals, warning that such measures could displace ordinary residents without addressing the root causes of the city’s housing affordability crisis. The accommodation platform argues that decades of housing undersupply, rather than holiday rentals, have primarily driven the shortage, and that new regulations risk penalising vulnerable homeowners who rely on supplemental hosting income.

In a detailed submission responding to the City of Sydney’s “Housing for All” discussion paper, Airbnb called on local authorities to prioritise enforcement of existing regulations over introducing new controls. The company highlighted the current New South Wales regulatory framework, which includes a strict 180-day annual cap on non-hosted short-term rentals, as sufficiently robust if properly enforced.

Airbnb’s submission included the story of a 70-year-old woman from Alexandria, a recently divorced single mother who supports her three children by renting out a studio on her property. The platform contended that tighter restrictions would disproportionately impact such individuals, including retirees and mortgage holders who rely on hosting income to maintain their homes.

The company also referenced NSW government data indicating that Sydney apartment developments completed between 2017 and 2022 averaged seven storeys, rather than the planned 10, purportedly resulting in approximately 45,000 fewer homes available in the city. Airbnb argued this undersupply, rather than short-term rentals, contributes more significantly to housing pressures.

Beyond housing affordability, Airbnb warned that stricter rules could reduce accommodation options for patients seeking specialist medical treatment, families displaced by natural disasters, domestic violence survivors, and temporary workers. The platform also noted that short-term rentals help absorb hotel overflow during major events such as Mardi Gras, Vivid Sydney, and New Year’s Eve celebrations.

The submission urged the City of Sydney to focus on enforcing existing rules, stating “The challenge is not a lack of regulation. It is enforcement.” This position has found support among business groups, with Paul Nicolaou, executive director of Business Sydney, expressing opposition to blanket bans on short-term rentals. Nicolaou said such accommodations play a vital role in supporting tourism, local businesses, jobs, and major events throughout the city.

The City of Sydney did not provide a comment on the matter at the time of publication. The debate reflects ongoing tensions as local councils and the NSW government seek to balance housing affordability concerns with the economic and social benefits of the expanding short-term rental market.