Restrictions could be placed on new apartments and homes in the Kiama area to try and halt the growth of short-term rental accommodation.
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When it comes to short-term rental accommodation (STRA) density, Kiama has one of the highest in the state, according to the just-released NSW Government discussion paper on the subject.
Kiama is in fourth spot with 612 of its 10,317 homes - 6 per cent - registered for STRA.
Byron is the worst with 8 per cent, followed by Snowy Monaro (7 per cent) and Shoalhaven (6 per cent).
The high density was no surprise to Kiama Mayor Neil Reilly. The council has tried to take measures to limit the impact; in 2021 it attempted to restrict the rentals to a 180-day window but was knocked back by the former Liberal state government.
There are some new developments in the pipeline for Kiama, including a 1000-home subdivision in West Kiama and a multi-storey apartment block just off the main drag of the CBD.
Mayor Reilly said the council will consider ways to introduce a timed limit on when these and other new residences could be leased to stop them becoming STRAs as well.
"We've got a number of planning proposals and DAs before us that we want to see if we can get ahead of the game," Mayor Reilly said.
"Rather than have them go straight to short-term rental accommodation if we can intervene somehow and have their lease restricted to a number of days that will certainly take the edge off the rental situation."
There are also plans for the upcoming Australian Local Government Convention where Kiama council representatives will liaise with other councils who are also experiencing a high density of STRAs and low rental stock.
Mayor Reilly said the council understood the need to strike a balance between owners doing what they want with their properties and also the fact there are people who want to live in Kiama but can't find a home.
Aside from what he termed "the party house syndrome", the other main concern for the council was that the STRA market meant a lot of properties were sitting empty on weekdays, when NSW was going through a housing crisis.
"Suburbs like Gerroa, you can fire a gun down the main street and not hit anybody during the week but on the weekend it's chock-a-block full of short-term rental accommodations," Mayor Reilly said.
The purpose of the NSW Government's STRA discussion paper is to find out how well the regulatory framework is balancing benefits to the tourism economy with the cost to housing availability.
The paper did not say freeing up STRAs for renters was the answer to the housing crisis, but it provided more immediate relief than other methods.
"Policies to unlock supply will not yield immediate effects," the paper stated.
"It takes time for rezonings or land release to translate into housing approvals, construction and then into properties ready for living.
"Policies that encourage people to make STRAs or underused properties (for example, holiday homes and vacant properties) available for long-term use could make a difference sooner."
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
