The City of Sydney Council is considering banning short-term rentals in 11 inner-city suburbs, but Krystina Cleary, founder of Cleary & Co, argues that the focus should be on enforcing existing laws rather than imposing new restrictions. Cleary contends that the narrative linking Airbnb to the housing crisis overlooks the real issue: a systemic failure to police unregistered hosts.
Data from the City of Sydney shows that of 5,454 active short-term rental listings in the local government area, only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework. This leaves more than 3,000 listings operating outside legal requirements. Cleary, who has managed Sydney properties since 2017, says this compliance gap weakens the entire regulatory structure. "Without registering, you are either impacting short-term letting options or claiming to be exempt, and this should be picked up by the Department of Planning," she said. "It is a pointless exercise to make credible providers jump through hoops, yet unscrupulous operators can bypass the system entirely."
The motion, passed on 28 April 2026, directs the CEO to investigate restricting non-primary-residence short-term rentals in suburbs including Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale, where rental vacancy rates are below 3 percent. Cleary argues that the homeowners affected are often individuals using their property to fund retirement, visit family, cover medical expenses, or support their businesses. "Under a ban, these owners would be hamstrung into a long-term rental model that does not allow them to use their properties for personal use and which is capped in terms of income," she said. "It did not work in Byron Bay, and it will not work in Sydney."
Short-term rental listings represent an estimated 0.9 to 1.6 percent of Sydney's total housing stock, according to Cleary. She believes the debate is being driven by political motives rather than practical solutions. "The Greens have jumped onto this bandwagon to gain voters," she said. "It is growth economics 101: centrally located areas become more populated, change, and increase in value. If you are a homeowner paying the mortgage, doesn't that give you the right to decide what to do with your own property?"
Despite regulatory uncertainty, Cleary is optimistic about the future of short-term rentals in Sydney. "What we will see is a true five-star experience for visitors. Unscrupulous hosts have no long-term staying power," she said. "The Airbnb model is a necessary option because hotels are no longer practical for many travellers." For property owners, Cleary advises a personal decision based on individual circumstances. The investigation into potential restrictions is ongoing, and no ban has been implemented.
