Short-term letting trends

Sea change in short-term letting.

As the pandemic fades from public attention, it’s good to take a moment to reflect on what has changed. 

Some will remember when short-term letting was a hot topic at almost every strata meeting.  It is still topical, though in an entirely different context.  

The pandemic-induced exodus of people to regional NSW has generated some acute housing and workforce shortages. That in turn has generated complaints that more holiday homes and short term lets should be made available for permanent residents and workers.  

This news article about the negative impact of the increases in regional short-term listings.  

Buried in the detail, though, was the flip side of this equation. The same data set shows the market collapsed in Sydney, where most short-term letting occurs. In July 2019, there were 24,751 listings. Fast forward to July 2022 and listings were down to 11,060, a drop of 55 per cent. 

Much of the drop is, of course, a legacy of the abrupt closure of international borders in 2020. It is also likely that, as life returns to (the new) normal, many owners now prefer the steady returns from a tight long-term rental market. 

But there is little doubt that the stringent regulation, which took effect from late 2020, gives owners corporations a much stronger hand and has had an impact. At least for now. 

While many buildings have since adopted by-laws prohibiting short-term letting except by resident owners, those pressures may well return as tourism and immigration ramp up again. 

Rest assured that we will stay across major changes that impact short-term rentals in strata.  

Here are the previous S+ updates on this topic – short-term rentals in strata and short-term strata lettings.  

You might also like to visit the Owners Corporation Network website for further information.  

September 2022