URGENT UPDATE: New rental laws are pushing landlords out of the market, exacerbating the housing crisis in New South Wales (NSW). Tim McKibbin, CEO of the Real Estate Institute (REI), warns that while these changes aim to help tenants keep pets, they are inadvertently causing a significant decrease in rental properties available.
The new Residential Tenancies Amendment Act, effective from 2025, prohibits landlords from evicting tenants or denying pets “without a valid reason.” This legislation was designed to make it easier for tenants to retain their pets in rental homes. However, it has added administrative burdens for landlords, complicating the process of reclaiming their properties. McKibbin highlights a “sad irony”: tenants may gain the right to have pets but face an increasingly scarce rental market.
In areas such as Orange, Bathurst, and Dubbo, the rental crisis is palpable. The Orange local government area has recorded a staggering 0.9% vacancy rate as of June 2025, far below the average of 3.2%, according to PRD Real Estate. This alarming statistic underscores the limited options available for prospective tenants.
McKibbin reports early signs of investors exiting the rental market due to these new “disincentives.” Landlords now face the choice to sell their properties or convert them into short-term rental accommodations (STRA), such as those listed on Airbnb. “If you are a landlord and don’t want a pet in your property, your options are limited,” McKibbin explains, noting that many are opting to “lock their doors” and wait for capital growth instead.
As of 2025, there are approximately 720 active listings on Airbnb in Orange, marking an increase of nearly 500 listings since 2019. The Orange City Council’s 2022 Housing Strategy indicates that the rise of STRAs has further diminished the availability of long-term rentals. This shift has left many workers, including tourists and those in the healthcare and construction sectors, scrambling for housing.
Critics like Shelter NSW argue that the allure of higher profits from STRAs is diverting much-needed rental properties away from the market. They call for tighter regulations to address this growing issue.
McKibbin also points out that the new laws have led to increased workloads for the New South Wales Civil and Administrative Tribunal (NCAT), which is currently grappling with lengthy wait times of up to 12 months. This bottleneck is driven by disputes over pet policies and property possession, with no additional resources allocated to manage the influx of cases.
The housing crisis in NSW is intensifying, with McKibbin asserting that the laws are “making it worse by a symptomatic problem.” He emphasizes that while tenants desire pets, the dwindling number of accommodating landlords presents a significant barrier. As more landlords exit the rental market, the cycle of scarcity continues, leaving many without options.
As this situation develops, observers are urged to consider the implications of these new laws and their impact on both landlords and tenants. The urgent need for a balanced approach to housing policy is clear, as the crisis deepens and the market shifts.
Stay tuned for further updates on this rapidly evolving situation.
