UPDATE: Landlords are rapidly exiting the rental market in New South Wales (NSW) following the implementation of new rental laws aimed at protecting tenants and their pets. Tim McKibbin, CEO of the Real Estate Institute (REI), warns that these changes are exacerbating the ongoing housing crisis, leaving potential tenants in dire straits.
The Residential Tenancies Amendment Act, effective from 2025, prohibits landlords from evicting tenants or denying pets without a valid reason. While this may seem beneficial for tenants, it has created significant hurdles for landlords, discouraging many from keeping their properties on the rental market. “The tenant may have the right to have the pet and to retain the property, but what they may not have is a property,” McKibbin stated.
Currently, the vacancy rate in the Orange local government area is a staggering 0.9% as of June 2025, well below the average of 3.2%, indicating a severe shortage of available rental homes. This alarming statistic reflects the growing difficulty for tenants to secure housing, especially in key areas like Bathurst and Dubbo.
As landlords face increased administrative burdens and longer wait times for property recovery—up to 12 months—many are opting for more lucrative options like short-term rental accommodations (STRA). McKibbin noted that the STRA market is becoming “more attractive” for investors, with 720 active listings on platforms like Airbnb in Orange, nearly 500 additional listings since 2019. This shift is further tightening the already limited rental market.
Critics like Shelter NSW have voiced concerns over the growing influence of STRAs, arguing that the “lure of higher profits” is diverting long-term rental properties away from the market. They advocate for tighter regulations on short-term accommodations to restore balance for renters.
The new laws have also introduced challenges for the New South Wales Civil and Administrative Tribunal (NCAT), which is now grappling with increased disputes over pet policies and property possession. McKibbin highlighted the irony of the situation: “You have people who want a pet but there aren’t enough landlords to permit you to have a pet.” He urged agents and landlords to navigate the compliance issues carefully to avoid further exacerbating the crisis.
The situation is urgent. As landlords turn to selling or converting properties into STRAs, the rental market continues to shrink, leaving countless potential tenants without viable housing options. McKibbin’s warnings serve as a stark reminder that while the laws aim to protect tenants, they may inadvertently be driving investors away, worsening the housing crisis in NSW.
As this story develops, stakeholders will be closely monitoring the impact of these new regulations on the rental market and the long-term consequences for both tenants and landlords. For now, the focus remains on the immediate fallout from these changes and what the future holds for housing in New South Wales.
