Airbnb Under Fire: Sydney and Queenstown Move to Clamp Down on Short-Term Rentals
By Lions Roar International Housing Desk
SYDNEY / QUEENSTOWN (Monday, January 26, 2026) — From the bustling streets of Sydney to the alpine slopes of Queenstown, city officials are intensifying their fight against short-term rental platforms like Airbnb. As global hotspots from Barcelona to New York enforce strict bans, local leaders in Australia and New Zealand are now seeking new ways to return empty holiday homes to the long-term rental market.
🇦🇺 Sydney: The 5,000-Home “Ghost” Problem
In the City of Sydney, Greens councillors have secured unanimous support for a proposal to review the impact of short-term accommodation on the housing crisis.
- The Proposal: Council staff are currently reviewing a plan that could see tighter restrictions on the roughly 5,000 Airbnbs estimated to be operating within the city limits.
- The Loophole: While a 180-day cap already exists, Greens councillor Matthew Thompson argues that many operators are sidestepping the rules due to poor oversight. “We’re in the middle of a housing crisis… people are literally homeless while these properties sit empty for much of the year,” Thompson told 1News.
- Next Steps: Following the staff review, the proposal will enter a public consultation phase.
🇳🇿 Queenstown: One-Third of Houses Sit Empty
In New Zealand’s tourism capital, Queenstown Mayor John Glover is taking a data-driven approach after a previous attempt to restrict short-term lets was blocked by the Environment Court in 2023.
- Inefficient Use: Glover notes that on any given night, one-third of properties in the district are empty. “Do we have a housing shortage? Maybe not. Do we use them efficiently? No,” he stated.
- The Investigation: The Council has commissioned Auckland University to investigate the scale of short-term letting. The goal is to provide the “cause and effect” evidence required by the Environment Court to justify new regulations.
- Call for Data: The Mayor is calling for Government intervention to force platforms like Airbnb to share address data so councils can ensure operators have the correct permissions and pay appropriate rates.
⚖️ The Government Response
Despite the push from local councils, the New Zealand Government remains focused on supply rather than restriction.
Housing Minister Chris Bishop told 1News that the issue is not a shortage of land, but the barriers to building.
“Proposed changes to short-term letting are a symptom of the underlying problem. We are focused on fixing the fundamentals to enable more homes to be built.”
📊 Short-Term Rental Crisis: By the Numbers
| Region | Key Concern | Proposed Action |
| Sydney | 5,000 empty apartments | Public consultation on tighter caps and oversight. |
| Queenstown | 33% of homes empty at night | Auckland University study to prove housing impact. |
| Global Context | Banned in NYC/Barcelona | Cities seeking to reclaim housing stock for locals. |
