Short-term rental platforms have transformed tourism in NSW but are blamed for stripping the long-term rental market of supply, particularly in coastal hotspots like Byron Bay and parts of Sydney. The NSW government has explored caps (e.g., 60 days per year) to balance the rights of property owners with the desperate need for residential housing. Proponents argue that housing is a human right that supersedes the profit motives of holiday letting. Opponents argue that these caps infringe on property rights and hurt regional economies that lack sufficient hotel infrastructure.
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