A fairer housing system for NSW

The NSW Government is today releasing a discussion paper and seeking community input which will inform a comprehensive review of Short-Term rental Accommodation (STRA) in NSW.

This is an important next step as the NSW Government continues to look at ways to address the housing crisis in NSW.

Led by the Minister for Housing, Minister for Homelessness Rose Jackson, the four-week public consultation opens today with the release of a discussion paper and an online questionnaire.

Through this review the NSW Government will work with all stakeholders to ensure outcomes contribute meaningfully to increasing housing affordability, and stability in NSW.

Specific feedback which will be sought and considered throughout this process includes:

• The adequacy of the STRA planning and regulatory framework, and options for improvement.
• Potential policy options, including measures to incentivise property investors to make properties available for long-term rental accommodation.

In NSW, housing affordability and availability are at their lowest levels in decades.

Even though NSW has the largest population, it is last on the east coast when it comes to housing completion.

Building approvals and construction activity have slowed while build costs have skyrocketed.

Rental vacancies are low and there are more than 55,000 people on the waitlist for social housing.

This week alone, two independent reports highlighted the magnitude of the housing crisis facing Australia’s most populous state.

The Productivity Commission reported that Sydney was at risk of becoming a city with no grandchildren if we do not meaningfully address the housing crisis.

Whilst an analysis by Homelessness NSW showed that homelessness has risen across 58 of the state’s 128 local government areas in the past year alone.

The NSW Government is taking action to strike the right balance between supporting our local communities, supporting the visitor economy and jobs, whilst addressing the homelessness, housing and rental crisis.

Whilst the review and potential reform of STRA alone is not a silver bullet, it is an important step towards fixing existing structural issues in the housing market.

All options are on the table in this review and the NSW Government looks forward to seeing extensive feedback from industry as well as the community.

For more information and to have your say, visit the NSW Planning Portal's Discussion paper on short and long-term rental accommodation.

Minister for Planning and Public Spaces Paul Scully said:

“We’re hoping to better balance housing availability for the people of NSW with the benefits that tourism brings to local communities.

“We’re in a housing crisis, so it’s important we look at every available option to boost housing supply, including a shift from non-hosted short-term rentals to long term rentals.

“We’ve already endorsed the Independent Planning Commission (IPC) recommendation to tighten the cap on some non-hosted short-term rentals in Byron Shire, and other recommendations made by the IPC will be considered as part of this broader STRA review.”

Minister for Housing and Minister for Homelessness Rose Jackson said:

“We’re determined to do everything we can to tackle the housing crisis and put every part of the housing market under the microscope for options to encourage a greater supply of long-term rental accommodation.

“All options are on the table and we are keen to hear from the community on how various aspects of regulatory and revenue measures can be designed to get the best outcome.”

“This review will inform our approach to make better use of all forms of housing, including short term rentals, vacant property and holiday homes.

“This includes looking at ways to move some of this housing to the long-term rental market and to minimise its negative impacts on the housing market as well as what we can do to support homelessness services across NSW.”