Sunshine Coast Council’s Short-Term Rental Regulations Tightened, Aligning with Other Coastal Cities

The Sunshine Coast Council voted on 9 July 2026 to implement new regulations on short-term rental properties, a move affecting homeowners leasing their properties on platforms such as Airbnb and Stayz. The policy introduces registration requirements and limits the number of days properties can be rented short-term, impacting the local rental market and tourism accommodation options.

This change follows growing concerns in the region over housing affordability and availability, with the tourism sector expanding rapidly. Short-term rentals have become a significant part of accommodation offerings, but residents and local officials have raised issues around noise, parking pressures, and the reduction of long-term rental properties.

What This Means for Sunshine Coast Residents

The new rules require property owners who offer their homes for short-term stays to register with the council before listing. The regulations cap the number of days a property can be rented short-term at 90 days per year in residential zones, aimed at preventing the conversion of permanent housing into de facto hotels. For local tenants, this policy is expected to increase the availability of long-term rental homes, which have been under pressure due to demand from tourism-related short-term lettings.

Local residents in suburbs such as Maroochydore and Mooloolaba, where short-term rentals have been popular, may notice changes in rental stock and neighbourhood dynamics as a result. Policy analysts say the 90-day cap is in line with similar measures employed in cities like Byron Bay in New South Wales and Noosa within Queensland, where councils have sought to balance the economic benefits of tourism with housing needs.

Data and Comparison with Other Cities

The Sunshine Coast City Council estimates that short-term rentals accounted for approximately 5,500 properties in the region as of early 2026, representing nearly 10 per cent of all residential properties in some tourist-heavy suburbs. The new registration system will provide clearer data for monitoring and enforcement. By contrast, Brisbane’s 2025 regulations imposed a 180-day cap, reflecting its larger rental market and different housing pressures.

The Queensland government’s 2026 Housing Affordability Report highlights that regions like the Sunshine Coast face rental vacancy rates as low as 0.8 per cent, compared to a healthy rate between 2 and 3 per cent, underscoring the need for measures that address housing availability. The budget allocated by council includes an additional $350,000 over the next 12 months to enforce the regulations and manage compliance.

The council’s decision follows community consultation held over six months, gathering feedback from residents, tourism operators, and property owners. Local advocates emphasise the importance of follow-through on enforcement to ensure compliance and that expected gains in long-term rental availability are realised.

With the policy now enacted, the council will begin the property registration rollout from 1 August 2026. Enforcement officers will start monitoring listings and compliance from October. Residents can expect clearer communication on compliance processes via council newsletters and local media as the system is implemented.

Observers note that while similar policies have helped moderate the growth of short-term rentals in other coastal cities, the balance between tourism-driven economic activity and housing needs will remain a key issue for Sunshine Coast local government and residents in coming years.