Hobart Moves to Free Up 20,000 Homes for Renters

Hobart is taking a bold step to tackle its rental crisis by restricting new whole-home Airbnb conversions across 20,000 residential properties.

The Hobart City Council's planning committee approved the proposal Wednesday, sending it to Tasmania's Planning Commission for final approval. If passed, the rule would prevent property owners from converting entire homes in residential neighborhoods into short-term rentals like Airbnb or Stayz.

The change wouldn't affect existing short-stay permits or properties in the city's central business district. Council officers say the goal is simple: get more long-term rental housing back on the market without shutting down tourism.

"The primary purpose is to limit the impact of new visitor accommodation on the availability and affordability of housing for long-term residents," council officers wrote in their analysis.

Lord Mayor Anna Reynolds pointed out that Hobart has a higher percentage of short-stays compared to rental housing than nearly any other Australian capital city. "We are losing young people to other parts of Hobart because they can't get a rental here," she said.

The proposal drew strong reactions from both sides during public consultation. Fifteen submissions supported the change, focusing on housing affordability and neighborhood stability. Forty-one opposed it, arguing that short-stays boost the economy and provide crucial visitor accommodation.

The Ripple Effect

This move reflects a growing global trend of cities finding balance between tourism income and resident housing needs. Barcelona, Amsterdam, and other tourist hotspots have implemented similar restrictions after watching rental markets tighten.

Merrydith Callegari, who has hosted short-stay guests for over a decade, urged the council to work with hosts instead of restricting them. "Short-term rentals fill gaps that hotels can't," she told the committee. "Every host should have the right to host."

Some councillors agreed the measure might not solve everything. Alderman Marti Zucco argued that property owners should have freedom over their investments. But Councillor Ben Lohberger countered that giving council discretion over approvals protects residential neighborhoods from becoming "mini hotels."

Deputy Lord Mayor Zelinda Sherlock emphasized the amendment only applies to new permits in residential zones, preserving both existing operations and downtown tourism infrastructure.

The Planning Commission will likely hold public hearings before making its final decision, giving Hobart residents one more chance to weigh in on their city's housing future.