Hobart City Council has taken a significant step towards curbing the proliferation of whole-home short-stay accommodation, voting to advance strict new limits across the city. The plan, designed to safeguard long-term rental properties, will now proceed to the state planning body for final assessment and approval, ABC News reported today.
The council’s decision follows months of discussion and public consultation regarding the impact of short-term rentals on Hobart’s critically tight housing market. The proposed changes specifically target new whole-home short-stay conversions in Inner Residential, General Residential, and Low Density Residential zones, according to earlier reporting by Pulse Tasmania. Existing lawful short-stay operators would not be affected, and home-sharing or hosted stays would still be permitted. New short-stay use would also remain an option within new developments.
Lord Mayor Anna Reynolds has previously stated that Hobart’s rental market is under immense pressure, with vacancy rates hovering between 0.5% and 0.7%, far below what is needed to stabilise rents. Council analysis indicated that up to 840 entire homes are currently utilised for short-stay accommodation, with approximately half of these properties previously serving as long-term rentals. This conversion of properties has been identified as a key factor in exacerbating the housing crisis for local residents.
The draft planning scheme amendment was initially endorsed by the City of Hobart’s Planning Authority on June 10, 2026, Pulse Tasmania reported. The latest vote by the council pushes this amendment forward to the Tasmanian Planning Commission, an independent state government body, for its review and ultimate decision.
The proposed restrictions have met with opposition from industry stakeholders. Airbnb lodged a formal submission arguing the move is legally flawed and will not effectively address Hobart’s housing challenges, Pulse Tasmania reported on July 20, 2026. An Airbnb spokesperson contended that the amendment would restrict a vital segment of accommodation while failing to tackle restrictive planning rules and the lack of new home construction, which they claim are the true drivers of the housing problem. The company also stated that over 80% of Hobart hosts share just one home, with many relying on the income to manage cost-of-living pressures.
The Housing Industry Association (HIA) has also opposed the restrictions, with executive director Benjamin Price stating that targeting short-stay accommodation is “the wrong lever” and “doesn’t build a single new home,” as reported by Pulse Tasmania.
Despite the opposition, the council has chosen to advance the plan, underscoring its commitment to addressing the long-term rental shortage. The Tasmanian Planning Commission’s assessment may include public hearings before a final determination is made. Readers can find more details on the council’s proposal and its journey through the planning process on the ABC News website.