Byron Bay Short-Term Rental Accommodation Cap Evaluation

This technical report evaluates the impact of the 60-day cap on non-hosted short-term rental accommodation (STRA) in Byron Bay, which was introduced in September 2024. The cap aimed to address the housing crisis by encouraging property owners to transition from STRA to long-term rental accommodation (LTRA). The report outlines the background context, including the housing challenges faced in Byron Bay and the emergence of STRA regulations. It presents qualitative assessments based on interviews with local business owners, who expressed concerns about the worsening housing situation. The evaluation utilizes data from AirDNA and NSW Fair Trading to analyze STRA and LTRA market trends. Findings indicate that there has been no significant impact on STRA activity or the LTRA market since the cap's implementation, with rental prices continuing to rise. The report concludes that the intervention has not achieved its intended goals of increasing long-term rental availability and affordability, suggesting that the expected outcomes may be unattainable.