A street in inner Sydney has become a focal point for debate surrounding the impact of short-term rental platforms like Airbnb on housing availability. Greens councillors Sylvie Ellsmore and Matthew Thompson report that 85 out of approximately 127 houses on High Street in Millers Point are operating as short-term rentals.
Councillors are calling for a ban on investor-owned Airbnbs, arguing that this practice reduces the availability of long-term rental properties and contributes to the ongoing housing crisis. "Every house should be a home, not a mini hotel," Ellsmore stated, emphasizing the need to prioritize housing for residents. She believes that the significant number of properties used for short-term stays, some reportedly fetching $1,000 per night, has contributed to a decline in permanent residents and a rise in tourism in areas like Millers Point.
This shift, according to Ellsmore, has had a tangible effect on the community, citing the closure of KU Lance Childcare, a center that had operated for over 120 years, due to a 30% drop in enrollments. She further noted that the issue extends beyond Millers Point, affecting neighborhoods such as Surry Hills, Glebe, Ultimo, and Potts Point, with over 6,000 homes within the City of Sydney currently used as short-term rentals.
The City of Sydney acknowledged the concerns, stating that while not opposing short-term rentals, the council is investigating their impact on rental affordability and availability. A spokesman confirmed that a report commissioned in 2024 explored these effects, and the council is examining feasible solutions within the New South Wales planning framework.
Airbnb Australia and New Zealand contested the notion that short-term rentals are a primary driver of Sydney's housing challenges. A company spokesperson asserted that the housing crisis is rooted in a lack of supply, not home-sharing. They highlighted that short-term rentals constitute a small portion of the housing market and serve various needs beyond tourism, including temporary housing for those affected by domestic violence or home insurance repairs, and families supporting loved ones in hospital.
Historically, Millers Point was characterized by public housing, with cottages built in the early 1900s for dock workers. The area began to transform after the NSW Liberal government's decision to sell public housing properties in 2014. Residents have since observed the impact of this shift, with concerns raised about the imbalance between short-term rentals and local housing needs. Melanie Tait, a resident of nearby Dawes Point, previously expressed that while holiday rentals are not inherently bad, their high concentration in certain areas creates an inequitable situation for locals seeking a sense of community and affordable housing options.