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Sydney Council Orders Probe Into Targeted Bans on Non‑Resident Short‑Term Rentals

The move signals a push to free up long‑term rentals by curbing investor‑run listings.

Overview

  • City of Sydney councillors, who passed the motion Tuesday, asked staff to test a time‑limited ban on entire homes that are not a primary residence.
  • The brief includes suburb‑specific bans in areas like Surry Hills, Potts Point, Pyrmont and Millers Point, plus a trigger that turns on restrictions when rental vacancies fall below 3%.
  • Officials say the state’s 180‑day annual cap on non‑hosted stays is hard to enforce without a verified register, so the Lord Mayor will seek stronger state data access and transparency.
  • Premier Chris Minns urged caution over tourism impacts, while Stayz and Business NSW opposed council‑by‑council rules and pressed for a single, consistent state framework.
  • Other places have tightened rules, including Byron Shire’s 60‑day cap, New York City’s host‑presence requirement for short stays, and Barcelona’s plan to end all short‑term rentals by 2028.