As the City of Sydney Council considers banning short-term rentals in 11 inner-city suburbs, a prominent Sydney Airbnb management expert is challenging what she describes as a politically convenient narrative that penalizes compliant homeowners while overlooking unregistered operators. Krystina Cleary, founder of Cleary & Co., says the debate linking Airbnb to the housing crisis fails to address core issues.
Data from the City of Sydney indicates there are 5,454 active short-term rental listings within the local government area, but only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework, leaving more than 3,000 listings operating outside legal requirements. Cleary notes that short-term rental listings represent an estimated 0.9 to 1.6% of Sydney's total housing stock. “The Greens have jumped onto this bandwagon in an attempt to gain voters,” she says. “It is a naive perspective that prime, centrally located real estate should simply be made available to everyone.”
The City of Sydney motion, passed on 28 April 2026, directs the council's CEO to investigate restricting non-primary-residence short-term rentals in suburbs including Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale, where rental vacancy rates sit below 3 percent. However, Cleary argues that enforcing existing legislation would be more practical and equitable. “I am not clear on how rentals are bypassing the STRA registration, as this is required to list properties for stays under 90 days,” she says. “It is a pointless exercise to make credible providers jump through hoops, yet unscrupulous operators can bypass the system entirely.”
Cleary emphasizes that affected homeowners are diverse, including those using property income to fund retirement, visit family, cover medical expenses, or support businesses. “Under a ban, these owners would be hamstrung into a long-term rental model that does not allow them to use their properties for personal use,” she says. “It did not work in Byron Bay, and it will not work in Sydney.”
Despite regulatory uncertainty, Cleary remains optimistic about the market's direction. “What we will see is a true five-star experience for visitors to our city. Unscrupulous hosts have no long-term staying power,” she says. “The Airbnb model is a necessary option in cities across the world, because hotels are no longer a practical option for an increasing number of travellers.”
