Short-Term Rentals Rival Homes in Coastal Areas

The report, commissioned by the Australian Coastal Councils Association , finds there were more than 174,000 Airbnb listings across Australia in December 2024 - nearly 1.6 percent of Australia's total housing stock. This is less than half the density of listings on the Sunshine Coast (3.2 percent) and less than one-tenth of the density of listings at Byron Bay (17.7 percent).

It found that the average density of listings on the Airbnb platform across eleven coastal areas that took part in the research project was 5.2 percent.

Lead researcher, Nicole Gurran , Professor of Urban and Regional Planning at the School of Architecture, Design and Planning , said the research showed that short-term rental properties comprise an important and increasing component of the tourism accommodation sector in Australia's regional coastal communities.

The report points out, however, that this growth relates in part to a long-term tradition of second home ownership beyond the major cities and digitalisation of this sector.

Professor Nicole Gurran

Professor of Urban and Regional Planning

"The report points out, however, that this growth relates in part to a long-term tradition of second home ownership beyond the major cities and digitalisation of this sector."

Professor Nicole Gurran

Professor of Urban and Regional Planning

"It shows that rising short-term rentals in coastal areas are part of a broader tourism boom, with hotels and other formal accommodation also seeing strong growth over the past four years - especially in the communities we studied."

The report found growth in tourism demand coincided with strong population growth across coastal communities. Some of this growth reflects population movement during the COVID-19 pandemic, however, it seems likely that a large proportion of incoming residents will remain in regional areas, as flexible work makes regional living more viable.

The report recommends that state governments strengthen support for local councils by improving oversight of the short-term rental sector, including requirements for digital platforms, like Airbnb, to share data on listings and bookings so councils can better track compliance and assess housing impacts.

The study highlights the need for stronger renter protections, greater investment in affordable housing in regional areas, and the reinvestment of any short-term rental levies back into the communities most affected.

Professor Nicole Gurran
"The study highlights the need for stronger renter protections, greater investment in affordable housing in regional areas, and the reinvestment of any short-term rental levies back into the communities most affected."

Professor Nicole Gurran

The report also urges limiting the number of nights properties can be rented short-term, while empowering councils to set their own local rules.

Additionally, it recommends developing systems to use short-term rentals as emergency housing when needed and monitoring the effects of new taxes to prevent further losses of permanent rentals. Supporting owners in transitioning properties back to long-term rental markets is also emphasised.

Professor Gurran said the study found that many of the communities have developed strong policy and regulatory frameworks for managing potential impacts associated with short-term rental accommodation.

"These frameworks need ongoing support from state governments and booking platforms. Strategies will vary dependent on the nature of state legislation and policy," she said.

Overall, the study's findings confirm that short-term rental platforms have reinforced and extended the longstanding role of residential homes as tourist accommodation in non-metropolitan coastal Australia.

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