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Sunshine Coast's Short-Term Rental Regulation: What Happens Next and the Key Decisions Ahead

As the Sunshine Coast grapples with the challenges of a booming coastal population, the council must make crucial decisions on short-term rental regulation to balance the needs of residents, tourists, and the environment.

By sunshinecoast News Desk · Published 20 July 2026

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Sunshine Coast's Short-Term Rental Regulation: What Happens Next and the Key Decisions Ahead
Photo: John Robert McPherson / Wikimedia Commons (CC0)

The Sunshine Coast Council has announced that it will be reviewing its short-term rental policies in the coming months, with a focus on finding a balance between the economic benefits of tourism and the concerns of local residents. This decision comes as the region experiences a significant population boom, with the coastal areas of Mooloolaba, Maroochydore, and Caloundra seeing a surge in new residents and visitors.

The review of short-term rental policies is crucial for the Sunshine Coast, as the region's popularity as a tourist destination continues to grow. The council must consider the impact of short-term rentals on the local housing market, as well as the potential strain on infrastructure and services. With the expansion of the Sunshine Coast University Hospital and the construction of the Maroochydore CBD, the region is experiencing a period of significant growth and development, and the council must ensure that this growth is managed sustainably.

Local Implications

In specific areas such as Alexandra Headland, Buderim, and Sippy Downs, residents have expressed concerns about the proliferation of short-term rentals, citing issues such as noise, parking, and strain on local amenities. The council will need to work with local organisations, such as the Sunshine Coast Chamber of Commerce and the Environment Council, to find solutions that address these concerns while also supporting the local tourism industry. For example, the council could consider implementing measures such as a registration system for short-term rentals, or introducing regulations on the number of guests allowed in each property.

According to data from the Australian Bureau of Statistics, the Sunshine Coast's population is projected to grow by 35% over the next 15 years, with the majority of this growth expected to occur in the coastal areas. This growth will put additional pressure on the region's infrastructure and services, and the council will need to ensure that its policies on short-term rentals are aligned with its overall planning strategy. For instance, the council's draft planning scheme, which is currently out for public consultation, includes provisions for managing the impact of tourism on the local environment and community.

In terms of specific numbers, a report by the Real Estate Institute of Queensland found that the median house price on the Sunshine Coast has increased by 12% over the past year, to $830,000. This growth in property values, combined with the increasing popularity of short-term rental platforms such as Airbnb, has led to a surge in the number of properties being used for short-term rentals. The council will need to consider the impact of this trend on the local housing market, and ensure that its policies are designed to support the needs of both residents and tourists.

As the council moves forward with its review of short-term rental policies, it will be important for residents, businesses, and other stakeholders to have their say. The council has announced that it will be holding public consultations and workshops in the coming months, and has encouraged anyone with an interest in the issue to get involved. By working together, the council and the community can find a solution that balances the needs of all parties, and ensures that the Sunshine Coast remains a vibrant and sustainable region for years to come.

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