Busselton, a coastal town in Western Australia, is experiencing a housing crisis as tourism flourishes. Helen Findlay, a healthcare worker who has lived in Busselton for 25 years, is facing homelessness for the second time in two years. She is preparing to sleep in her car with her dog, Banjo, after being priced out of the housing market.

"The town itself is losing the original things that people moved for and valued … that community and that feeling of connection," Findlay said.

Busselton's population has surged by over 22% since 2015, leading to a construction boom in suburbs like Geographe. However, the increase in housing has not kept pace with demand. House prices have risen by 50% from 2016 to 2025, with the median sale price now at $815,000, compared to $800,000 in Perth. Average rents range from $700 to $800 per week.

Findlay's situation reflects a broader trend in Busselton, where many locals are being pushed out due to rising costs. "There is literally no affordable housing available … I'm a single person, not married with no dependents and moving into a share home is not really an option for me at the age of 55," she explained.

The housing crisis has been exacerbated by the growth of short-term rentals, such as those listed on Airbnb. Since July, Western Australians operating short-term rentals must register their properties with the state government. Currently, there are over 11,000 short-term rentals in the state, with 46% located in Perth.

Planning Minister John Carey has expressed a desire to see fewer short-term rentals, stating, "I would absolutely prefer people ... to swap over to long-term rentals." He acknowledged the importance of short-term rentals for the tourism market but emphasized the need for a balance.

The South West region, a popular tourist destination, has about 27% of the state's registered short-term rentals. In some areas, such as the Shire of Jerramungup, the number of short-term rentals matches the total number of rentals available.

Professor Steven Rowley from the Bankwest Curtin Economics Centre noted that if half of the short-term rentals were converted to long-term rentals, it could significantly increase housing supply.

Joanne Iffla, president of the Shire of Jerramungup, highlighted the rapid changes in the housing market. "There isn't a lot for sale, and anything that does come for sale is snapped up quite quickly," she said.

In Dunsborough, about 500 kilometers west of Busselton, local business owners are also feeling the impact. Samantha Bottegal, co-owner of a Japanese restaurant, has had to lease housing for her employees to keep her business running. "We go guarantor, we put ourselves on the lease as well, which is obviously a bit more risk for us," she said.

Busselton has the highest number of short-term rentals in the state, with 1,691 properties. Mayor Phill Cronin acknowledged the challenge, stating, "We're getting to a point where there is a massive amount of tourism accommodation and we're finding that restriction on long-term rentals is really starting to hurt the local community."

In response, the City of Busselton has banned new unhosted holiday homes in certain residential areas and increased rates on existing holiday homes. The town is grappling with the need to support its local community while accommodating the demands of a booming tourism industry.