Victorian short stay rental reforms unlikely to solve housing crisis, expert says

New powers granted to Victorian councils and owners corporations to restrict or ban short stay rentals are unlikely to have a significant impact on the state’s housing crisis, according to an RMIT University expert.

Dr Liam Davies, an urban planning expert from RMIT’s Centre for Urban Research, said the reforms may bring local benefits but will probably have minimal effect on overall rental affordability.

“This change to short stay accommodation is likely to have positive benefits at a local level but may not significantly impact the state’s rental affordability issues,” Dr Davies said.

He noted that the new powers could help areas experiencing acute rental pressure, particularly in regional Victoria where tourism affects local workers and lower-income households.

“By restricting short stay rental accommodation, councils may be able to better balance the needs for locals and workers to find suitable housing, and the needs for tourists to be able to visit and holiday,” Dr Davies said.

The reforms may also address tensions in high-density areas like CBD apartments, where residents complain about living in hotel-like conditions.

“Allowing body corporates to ban short stay rental accommodation may help address tensions where residents feel they are living in a hotel, for example in CBD apartments, by reducing noise and behaviour complaints,” he said.

However, Dr Davies cautioned against expecting widespread changes to the rental market.

“The latest census indicates there are up to 50,000 short stay rental accommodations in Victoria. It is unlikely that all these dwellings would be shifted to long-term rentals – so the effect of the reform will probably be minimal,” he said.

Dr Davies is a lecturer specialising in social housing policy and urban planning. His research focuses on state and commonwealth government policies affecting affordable housing in Victoria.