I recently spoke with realestate.com.au about the impact of Victoria’s 7.5% short-stay accommodation levy.
Despite the levy being introduced at the start of 2025, rental vacancy rates remain at an ultra-low 1.8% in Melbourne, and rents have continued to climb, rising 2.8% in the past year.
What’s more, there’s no evidence that short-term rentals are shifting to long-term housing as per policymakers intentions. Instead, regional communities that rely on visitors are now facing higher costs without receiving any material benefit in return.
This highlights a critical point: policy changes that target short-term rentals do not solve housing shortages — and risk unintended consequences for both property owners and communities.
Read the full article here:
https://www.realestate.com.au/news/short-term-rent-hosts-shock-plans/
Let us know what you think in the comments.