With Kiama facing mounting housing affordability challenges, the role of short-term rental accommodation platforms like Airbnb has come under increased scrutiny.

As of early 2024, non-hosted short-term rental accommodation (STRA) accounts for around 1% of private housing stock in NSW, according to data cited by the Real Estate Institute of NSW.

In Kiama, the figure is closer to 6%, based on estimates shared during recent housing strategy consultations.

This stark contrast highlights the disproportionate impact of STRAs on housing availability in the region, raising concerns that growing tourist demand is pushing out long-term residents and exacerbating the local housing crisis.

At last Friday's housing strategy forum, local architect Madeleine Scarfe highlighted the economic implications of STRAs, noting that properties rented for $1,000 a night often contribute less to the local economy than long-term residents.

She proposed measures such as requiring development applications for STRAs exceeding certain rental days and adjusting rates to reflect their commercial use.

Community Housing Provider Natalie Allan emphasised the potential for STRAs to be converted into long-term rentals through partnerships with housing providers, offering property owners stable income and tax incentives.

Allan emphasised the importance of converting short-term rentals into long-term housing.

She highlighted that such partnerships could provide property owners with stable income and tax incentives, while increasing the availability of affordable housing for local residents.

Kiama Council is exploring options to regulate STRAs more effectively.

While the NSW Government currently allows up to 180 days of non-hosted STRA per year, other regions like Byron Bay have implemented stricter caps to address housing shortages.

Council is considering similar measures, including day caps and levies on non-hosted STRAs, to encourage property owners to return homes to the long-term rental market.

Residents are encouraged to participate in the ongoing consultation process to shape policies that reflect the community's needs and values.

Listen to

• KMC Director of Planning present Draft Housing Strategy V2 at Housing Strategy Business Panel Discussion on 11 April here

• Business Panel Discussion here

• Housing Expert Dr Tony Gilmour discuss the Draft Housing Strategy V2 with Bernie Hems on KCR here

• KMC Director of Plan Ed Paterson discuss the Draft Housing Strategy V2 with Bernie Hems on KCR here

Have your say

Kiama Council’s draft housing strategy is on public exhibition until 27 April .

You can read it and share your views at yoursay.kiama.nsw.gov.au/local-housing-strategy.

If the current approach doesn’t reflect your priorities, you are entitled to contact your councillors directly and ask for changes that support a more liveable, affordable Kiama.

The forum was rich with insight, lived experience and bold ideas. The Bugle will be sharing more highlights and panel discussions on The Bugle app over the next two weeks.