This research examines changes in the short-term rental accommodation (STRA) market in Australia, particularly since the COVID-19 pandemic. It explores landlords’ perceptions and the factors influencing their decisions to move properties into or out of the STRA market. Short-term rental accommodation (STRA) refers to properties rented out for three months or less – often through online platforms such as Airbnb.

The STRA market has expanded globally since the advent of platforms such as Airbnb. Australia’s housing crisis has intensified pressure on policymakers to address the impact of STRA on housing affordability and availability – especially in tourist areas. To develop effective legislation, it is crucial to understand both the changing dynamics of STRA, and the decision-making processes of property owners.

Key findings

• The short-term rental accommodation (STRA) sector is becoming increasingly professionalised, in a departure from its original ‘sharing economy’ model.
• There has been a trend towards ‘non-hosted STRA’ – where an entire property is rented without the host present.
• Non-hosted STRA is increasingly concentrated in regional tourist towns, whereas growth in capital cities has slowed or declined.
• Community views on STRA are polarised, and policymakers face significant challenges in regulating the market.

Regarding policy and regulatory considerations, the report finds that: 

• Local governments are best positioned to apply STRA-related regulations where needed, as STRA impacts are highly localised.
• State and territory governments should support local governments by implementing STRA registration systems. This already occurs in New South Wales, Western Australia and some local government areas.
• Accurate and consistent registration data helps councils enforce existing rules and determine whether additional STRA regulation is required.