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Does a 180-day cap on short-term rentals affect housing markets? Evidence from regional New South Wales

Author

Listed:
  • Zhenpeng Zou
  • Thomas Sigler
  • Alicia Rambaldi
  • Elin Charles-Edwards
  • Jonathan Corcoran

Abstract

With a strong post-pandemic rebound in domestic and international travel, debates regarding how best to regulate short-term rentals have surfaced as a key policy topic. This paper examines the dynamic causal impacts of a 180-day cap on short- and long-term rental markets in multiple regions in New South Wales, Australia. The analysis reveals a temporary reduction of active short-term rentals during the early implementation, which quickly dissipated. No evidence is found for the cap having any sustained impact on long-term rent levels. The results suggest that without effective enforcement, a 180-day cap alone may be insufficient to achieve policy objectives.

Suggested Citation

  • Zhenpeng Zou & Thomas Sigler & Alicia Rambaldi & Elin Charles-Edwards & Jonathan Corcoran, 2025. "Does a 180-day cap on short-term rentals affect housing markets? Evidence from regional New South Wales," Regional Studies, Taylor & Francis Journals, vol. 59(1), pages 2506601-250, December.
    • Handle: RePEc:taf:regstd:v:59:y:2025:i:1:p:2506601
    DOI: 10.1080/00343404.2025.2506601
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