Western Australia's Rental Crisis Deepens as Short-Stay Listings Overwhelm Markets
A new report from affordable housing advocacy group Shelter WA has revealed a stark imbalance in the state's housing market, with short-stay rentals—including Airbnb listings—dramatically outpacing available long-term private rentals in numerous regions.
The Numbers: A "Catastrophic" Imbalance
The six-month snapshot identified 45 distinct "pain zones" across Western Australia where the disparity is most acute.
In some towns, the ratio reached 200 short-stay rentals to zero long-term rentals.
Specific findings include:
- Nannup (South West): Short-stay rentals outnumber long-term rentals 90 to zero.
- Gingin and Dandaragan (Mid West): 201 and 106 unhosted Airbnbs, respectively, with zero long-term rentals available.
The report highlights that in these areas, the sheer volume of holiday properties is effectively locking local residents out of the housing market.
Calls for a "Ban" on New Holiday Homes
Shelter WA CEO Kath Snell pointed to a troubling trend: government incentives returned roughly 800 homes to the long-term market, but this progress was "offset by 900 new holiday home listings" in the two years leading to September 2025.
"We can't fix the rental emergency without addressing the short-stay accommodation boom," Snell stated.
She is calling for a specific regulatory intervention: a ban on new holiday homes in areas where the rental vacancy rate falls below 3% .
Industry Fights Back
The short-stay sector argues the issue is not so simple.
"The short-term accommodation sector should not be held solely responsible for the housing crisis."
Tegan Wilde, co-owner of Geographe Holiday Homes, argued that the housing shortage is a systemic problem involving "housing supply, planning constraints, population growth, infrastructure, and construction costs."
She suggests that singling out holiday rentals ignores the broader structural failures of the housing market.
Government Response: Progress vs. Demand
The state government defended its current approach, with a spokesperson noting that its short-term rental scheme had already returned "hundreds of properties" to the long-term market.
They also confirmed that new measures have been introduced to strengthen local planning controls, aiming to give councils more power to manage the spread of short-stay accommodations.
However, with the data showing a net loss of available housing despite these efforts, the debate over how to balance tourism dollars with resident needs is far from over.