Short-Term Rental Regulation Silver Linings

The Australian state of Victoria this week moved to give its local governments the power to limit short-term rentals in their regions.

It comes as the state moves to implement a 7.5% tax on all short-term rental listings – set to take effect Jan. 1, 2025.

It’s just the latest example of the global pushback to platforms like Airbnb, Vrbo and Booking.com, as a wave of cities have in recent years implemented a range of regulations seeking to curb the growth of short-term rentals.

The Spanish city of Valencia just this month instituted strict new regulations on short-term rentals. That follows Barcelona’s announced crackdown earlier this year, which would eliminate all short-term rentals in the city by 2029. New York City last year imposed new regulations so strict, Airbnb has called it a “de facto ban.”

Prompted by concerns over affordable housing and overtourism, new efforts to regulate or curb major platforms appear to create new setbacks for the growing short-term rental industry. But some experts say the reality is more nuanced: regulation isn’t inherently a death knell for the industry, and in some cases can actually help short-term rental operators