DOZENS of homelessness and community organisations are urging the NSW government to at least match Victoria’s levy on short-term rentals to fund stretched frontline services.

The Snowy Monaro local government area features in the list of NSW regions with the highest concentration of short-term rental accommodation.

Snowy Monaro has seven percent of properties as short term rental accommodation (STRA) coming in second on the list just under the Byron Shire with eight percent.

Snowy Monaro is third on the list for rates of homelessness at 57 homeless persons per 10,000 population.

Snowy Monaro Regional Council has made a submission to the NSW Government on potential regulations for short-term rental accommodation in the state, with Council calling for a balanced approach that protects residents without impacting local tourism.

In the submission, Council acknowledges the benefits short-term rentals provide to the region's tourist industry.

The submission also raises concerns about the impact these rentals are having on housing affordability and availability, especially in towns like Jindabyne near the Kosciuszko National Park snowfields.

"The data shows Jindabyne has a really high percentage of homes being used as short-term holiday rentals, rather than long-term rentals for residents," said Snowy Monaro Regional Council (SMRC) Mayor Chris Hanna.

"This reduces housing supply and makes it hard for workers and families to find an affordable place to live."

The submission states that 27% of dwellings in Jindabyne are non-hosted short-term rentals, the kind of accommodation usually found on services like AirBnB and Stayz. Council highlights statistics that show only 14.8% of homes sold and 6.6% of rentals listed in Jindabyne in the past year were affordable for a household on average income.

While calling for measures to increase long-term rental supply, the submission recommends any new regulations balance the need for affordable housing with allowing short-term rentals that support the region’s vital tourism economy.

"Tourism is the largest driver of our regional economy, and it’s really important that future regulation doesn’t hurt the Snowy Monaro’s tourist industry," said Mayor Hanna.

"But it’s just as important to find a way to help locals and workers be able to afford live in the communities they support."

Mayor Hanna advised SMRC look forward to continuing to work closely together with the state government to find a solution that works for everyone.

Federal Member for Eden-Monaro, Kristy McBain said, "We've made some of the biggest investments in social housing of any federal government over the last 10 years."

"This includes 3 billion dollars in the social housing accelerator fund, 2 billion dollars to incentivise states and territories to meet their targets, and when they do we will provide more funding so they can go further."

"It's really important that we have three levels of government working together to deal with the housing crisis, but when it comes to STRA's, those are regulated by the state government and we can already see some councils trying to implement their own levies like we've seen the Byron Shire doing at this point in time."

"We know Airbnb for example have responded to Byron Shire's request and have said they are prepared to do something in terms of levies if it's applied across the board."

"It is an important issue and one that I think will occupy the minds of state and territory governments more and more.

"We are seeing stock taken off long term rental market and put in to the short term rental market, and that's exacerbated in areas where we've had huge losses of homes through the black summer bushfires, but also areas with high tourism content like the Snowy Monaro."

"These issues have culminated on the back of another which has led to this situation across our region and we want to continue working with state, territory governments, and local governments to ensure we have a coordinated approach to short term rentals."

More than 60 organisations backed Homelessness NSW's plea to the government including youth homelessness peak youth foundations, Wesley Mission and St Vincent De Paul Society.

Homelessness NSW CEO Dom Rowe said We need a levy of at least 7.5 per cent coupled with tighter regulation of short-term rentals.

"This includes increasing fees for registering a short-term rental, and having targeted and region-specific caps on the number of days each year a property can be let on Airbnb-style platforms," Ms Rowe said.

“At a time when homelessness is soaring and one in ten homes are sitting vacant, NSW must be at least as ambitious as Victoria when it comes to levies on short-term accommodation.”

“The money raised through this levy must be poured into underfunded and overflowing frontline services that need $128 million over two years to meet demand.

Mr Rowe said every dwelling that’s let as short-term rental accommodation is one less available to provide safe and stable housing year-round.

“The lack of long-term housing supply has created a nightmare for renters who are increasingly turning to homelessness services, many for the first time, because they cannot find a place to call home," he said

“Tragically, half of those people who need accommodation can’t get the help they need because services are at breaking point, including women and children fleeing violence.

Mr Rowe said rental affordability is at a 17-year low, with NSW the least affordable state where virtually no home is affordable for people on low incomes

“Holiday hotspots such as the Snowy Monaro with soaring rates of homelessness are really feeling the effects of short-term accommodation on their housing markets," he said.