No Long-Term Rentals but 200 Short-Stay Listings in WA Towns

Why It Matters

The surge in short‑stay listings is squeezing the supply of affordable long‑term rentals, exacerbating housing insecurity in regional communities. Policymakers face pressure to balance tourism revenue with the need for stable housing stock.

Key Takeaways

• Short‑stay listings outnumber long‑term rentals 15‑to‑1 in regional WA
• Nannup recorded 90 short‑stay rentals and zero long‑term homes
• Shelter WA proposes bans where vacancy rates fall below 3%
• Busselton’s strict rules limit new holiday homes in residential zones
• Industry argues broader supply issues, not short‑stays, drive housing crisis

Pulse Analysis

Regional Western Australia is witnessing an unprecedented tilt toward short‑stay accommodation, according to Shelter WA’s latest data. In towns such as Nannup, Gingin and Dandaragan, Airbnb‑type listings outnumber traditional rentals by margins exceeding 90 to 1, creating 45 identified "pain zones" where housing scarcity is acute. The organization’s six‑month snapshot shows that while metropolitan areas also feel pressure, the disparity is starkest in the Mid West and South West, where many properties sit empty between tourist peaks, leaving permanent residents with limited options.

The housing crunch has tangible consequences for locals. In Busselton, a resident describes becoming homeless after rental prices surged beyond affordability, a trend echoed across the region as vacancy rates dip below 3 percent. Shelter WA’s CEO Kath Snell points to roughly 800 homes returned to the long‑term market through state incentives, yet this gain is neutralised by an estimated 900 new holiday‑home listings added between 2023 and 2025. The group urges governments to ban new short‑stay units in low‑vacancy zones, arguing that without curbing the holiday‑home boom, affordable one‑ and two‑bedroom units will remain out of reach for permanent residents.

The short‑stay sector pushes back, contending that housing supply, planning constraints and construction costs are the true drivers of the crisis. Industry representatives warn against framing the issue as "tourism versus housing," emphasizing the need for a balanced approach that supports regional visitor economies while protecting long‑term rental stock. State officials cite recent policy tweaks that aim to return properties to the long‑term market and tighten planning controls, but the debate underscores a broader challenge: aligning tourism growth with sustainable, affordable housing for Western Australia’s regional communities.