Byron Bay residents voiced their outrage on Tuesday at the impact short-term rentals have had on the region.
The New South Wales Independent Planning Commission (IPC) heads into its second day of hearings on Wednesday, which were established after Byron shire council voted unanimously for a cap on short-term rentals in December.
The NSW government then intervened to strip the council of its authority to limit the use of residential properties for holiday accommodation, just one day before a much-anticipated council vote on the issue, and passed the issue on to the IPC.
The council planned to drop the number of days available for short-term rentals from 180 to 90 a year.
The proposal would apply to certain zones in the shire, and is intended to limit Airbnb and similar platforms, reducing the financial incentive to favour short-term holiday letting over long-term rental.
The commission heard from local residents on the impacts short-term rental accommodation (STRA) has had on the region, many saying the growth in the market had affected local amenities, communities and support networks.
Many shared stories of friends and family who have had to live in their cars or sleep at work due to rental shortages. The commission heard many local services were unable to function properly due to staff leaving because they could not find housing.
Others complained that the rise in short-term rentals had replaced neighbourhoods with loud party homes and tourists that emptied the region of its sense of community.
Tuesday’s hearing followed the recent state government intervention to strip the local council in Byron Bay of its authority to limit the use of residential properties for holiday accommodation.
Byron shire council was due to debate and vote on a proposal at its ordinary meeting on Thursday that would amend planning laws to reduce the number of days that properties in certain zones in the shire could be rented out to tourists through platforms like Airbnb.
The proposal would only apply to houses and units where there was no host present, and came amid concerns about rising homelessness in the popular coastal community.
The local MP, Tamara Smith, said the region was a “traumatised community” due to the increasing housing pressure, exacerbated by flooding disasters and the Covid-19 pandemic.
Former MP Jan Barham, who described herself as a community activist, said the region was “under attack” by developers and investors.
“It feels like an invasion,” she told the commission. “This goes beyond housing issues, it impacts on our capacity as a community to thrive and be resilient, as it results in the loss of our permanent population.”
Mandy Nolan, another resident, said more women and children were living on the street than ever before, including a 70-year-old who spent 1,000 days sleeping in her car.
“These women are people who are in housing stress who have never been in housing stress before,” she said. “They have had long-term leases. They have jobs as teachers, they have jobs cooking in cafes, they have jobs in this community. These are not people who are used to being in distress.”
Byron has come under increasing pressure, with up to 35% of housing in the region estimated to be taken up by short-term rental accommodation, while available long-term rentals have declined by 10% since December 2020.
The cap was voted for unanimously by the council in December, but faced pushback from short-term accommodation platforms, including Airbnb, which argued the proposed changes would not increase the shire’s overall housing supply.
David Wallace, who works as a firefighter, said the lack of housing had meant local services were unable to find enough staff to actually support the community.
“If you want to have a big bucks night or hens night party in Auckland Street, there are some large rental properties that you can pay for and hold that event,” he said.
“But if you’re an essential services worker and a medical intensive care specialist, a six months rental is not available to you. This is almost dystopian, the way that this is evolving. It’s undermining the fabric of our society.”
The deputy mayor, Sarah Ndiaye, began proceedings by saying residents had been unable to compete with the growing STRA and tourism industry.
“They’re not homes,” she said. “And people who are on holidays are always going to be able to pay more for the very same things that we need when we live here. Residents can’t compete.
“We really need policy with teeth that allows us to make … enforceable laws that provide more housing, not just things written on paper.”
The hearing continues on Wednesday.
