"We're being priced out of our own neighbourhood": inner Melbourne residents demand council action on short-stay rentals

Residents of inner Melbourne are mounting growing pressure on the City of Melbourne to crack down on short-stay rental operators, with community groups warning that unregulated holiday lettings are eroding local housing supply and fundamentally changing the character of established neighbourhoods.

The pushback comes as councils across metropolitan Melbourne grapple with balancing tourism revenue against persistent housing affordability concerns. A draft study by Rental Alliance Victoria suggests short-stay platforms now control roughly 8,000 properties across Melbourne's inner suburbs, with particularly high concentrations in Fitzroy, Brunswick, and Carlton.

At a packed community forum held at the Brunswick Town Hall last month, residents described their frustrations directly. Local business owners on Brunswick Street reported declining foot traffic as permanent residents were displaced, while parents expressed concerns about schools losing enrolments as families left the area. One Fitzroy resident noted that median rents on neighbouring Johnston Street have surged to $2,850 per month for a two-bedroom apartment—up 34 per cent in three years.

"This isn't about stopping tourism," said Cathy Wu, co-chair of the Fitzroy Residents Association. "It's about having a functioning community. When 15 per cent of apartments on a single block become tourist accommodation, you don't have neighbours anymore—you have transient guests."

The City of Melbourne has indicated it will introduce stricter registration and planning requirements for short-stay rentals, potentially limiting operators to 120 days annually per property. A council spokeswoman told The Daily Melbourne that updated planning controls are expected before the end of the financial year.

However, community members say the proposed framework doesn't go far enough. At venues including the Fitzroy Town Hall and community centres across Collingwood, residents have called for stronger enforcement powers and stricter caps on holiday lettings in residential zones.

Local state MP Luke Donnellan acknowledged the pressure, saying the Victorian government supports council-led solutions but is monitoring the situation for potential state-level intervention if local measures prove ineffective.

The debate reflects broader tensions between short-term economic gains and long-term neighbourhood sustainability—a challenge increasingly felt across Australia's major cities as platforms reshape residential markets.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.