The NSW Government has announced a proposal for new regulation restricting property availability leased through Airbnb.
This comes as no surprise as we have commented previously that the use of home sharing services such as Airbnb restricts housing supply for long-term tenants pushing up rents. This is especially impactful in specific locations where demand is high already, and supply is low. Economics 101. Examples are Hobart and Byron Bay.
Our predictions have been that it is only a matter of time before Airbnb and short-term leasing would be further regulated to tackle the possibility of rental property shortage and increased rents.
Stay tuned, there will be plenty more to come over the next year or two.