A surge in homes being converted into holiday rentals had left workers unable to move to some areas due to a lack of long-term rental options, a probe into the housing crisis was told on Friday.
More than 165,000 homes across Australia are now used for un-hosted short-term rentals, but the average listing in Sydney sits empty for 80 per cent of the year, Unions NSW said.
One teacher living 50km from their school said they were exhausted from waking up at 4am every day, forced into the long commute because there was no local housing available.
"I get no more than 30 hours of sleep Monday to Friday … no personal time and I am the burden in all my social groups," they told a Unions NSW survey.
"I've wanted to quit every year I work."
The Health Services Union told the state parliamentary inquiry many of its members were spending more than 70 per cent of their income on rent with some commuting for four hours a day.
"This forces difficult choices between essentials, food and housing … many are skipping medication, forgoing health care, and living in unsafe conditions just to get by," the powerful union said in a submission.
"While many NSW government MPs benefit from negative gearing on multiple investment properties, many HSU members struggle to afford a home - a disparity that is unacceptable."
The police union said the shortage of affordable housing was hurting the force's ability to fill vacancies.
The state has been dealing with a debilitating shortage of officers and operating at several thousand positions short of full strength.
"Choosing to serve the people of NSW should not mean a choice to give up on a suitable home," the Police Association of NSW said in its submission.
Unions NSW secretary Mark Morey cited a recent case in which a teacher knocked back a job in the winery town of Mudgee after failing to find a suitable home.
"All that was available was short-term rental ... it's the same up and down the coast," he told AAP.
He backed taxing holiday rentals such as Airbnbs to increase the incentive for investors to re-enter the long-term rental market.
Byron Bay's 60-day cap for most un-hosted holiday rentals, introduced in October, also needed to be rolled out statewide, he said.
Victoria in January introduced a 7.5 per cent tax on short-term rental bookings of under a month.
Airbnb said that levy was too high to roll out in NSW, but it expressed support for a tax of three to five per cent provided day caps were ditched.
"We want to play a role in finding sensible, long-term solutions to help increase the housing supply and work with policymakers to balance the benefits of home-sharing with the needs of the wider community," Oceania manager Susan Wheeldon said.
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