A report stating that the 60-day cap for non-hosted short term rental accommodation (STRA) in Byron Shire is ‘ineffective’ has been roundly criticised by the Byron Shire mayor, Victims of Holiday Letting (VOHL), and local STRA researcher, Dr Sabine Muschter, who was part of the research team looking at Airbnb impacts on small communities.
The Frontier Economics report prepared for Airbnb in November 2025 looked at the impact of the 60-day rental cap on the long-term rental accommodation (LTRA) market in the last 12 months. It concluded that, ‘one year after implementation, the 60-day cap is ineffective in achieving its stated goal of increasing long-term rental availability and affordability.’
However, as Byron Shire Mayor, Sarah Ndiaye pointed out, ‘its conclusions are premature and do not reflect the timing, intent, or context of the 60-day cap.’
‘The cap has only just begun to meaningfully apply across much of the Shire, with many properties not affected until September this year (2025). It is far too early to declare the policy ineffective. Housing markets do not shift overnight, especially in an area as complex and tourism-driven as Byron. We have always been clear that a full understanding of the cap’s impact would take more than a single season.’
Ms Muschter, and VOHL agreed with the mayor and local MP, Tamara Smith that the 12-month timeframe is too narrow to assess the impact of the 60-day cap.
Only just fully implemented
‘The cap has not meaningfully taken effect prior to 2025 for most operators, and there are well-known issues with under-reporting of bookings. Drawing conclusions at this stage is therefore premature,’ Ms Muschter told The Echo.
‘It came as no surprise to VOHL to see this Airbnb-funded report, as it is part of a worldwide trend of similar reports funded by Airbnb, where governments at all levels react to the insidious creep of STRA into residential zones and legislate to regulate,’ said VOHL spokesperson David Wallace.
‘VOHL has observed an increase in the number of STRA properties being offered for sale. In one street in the 60-day precinct, seven STRA have for sale signs. We hope that these homes will have permanent occupancy. We urge all neighbours of STRA who believe that the cap regulation is being rorted to obtain evidence and lodge a complaint with Byron Council’s compliance department.
‘A major flaw in the Airbnb report’s methodology is that only ten business owners or managers were surveyed. Neighbours of STRA were not interviewed.
‘VOHL has been surveying the booking calendars, publicly available on web booking engines, of STRAs found in the 60-day cap precinct. We have concluded that many are exceeding the cap.’
Byron Shire Council has initiated an independent research partnership with Professor Nicole Gurran from the University of Sydney, a leading authority on STRA and housing policy.
‘This will ensure a proper, independent, and rigorous evaluation, something far more substantive than a one-year industry-commissioned snapshot,’ said Cr Ndiaye.
‘This work will provide robust, longitudinal evidence on how the 60-day cap is shaping the housing market before and after its introduction.’
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