Can I make money from Airbnbs and STRs in 2025?

Do STRs and Airbnbs earn money for homeowners?

Short-term rentals (STRs) are still one of the most attractive ways for Australians to earn extra income from a second home, holiday property, or investment. But the market in 2025 looks different to a year ago.

Across the country, new rules, shifting guest expectations, and increased competition mean hosting is no longer as simple as listing a property on Airbnb and waiting for the bookings to roll in.

The good news? With the right knowledge and tools, homeowners can still enjoy excellent returns. And with professional short-term rental management from an expert like Hometime, they can maximise those returns without the stress of doing it all themselves.

STR market performance in 2025

The STR market in Australia continues to grow in 2025, fuelled by domestic and international tourism, business and personal travel. Here’s a closer look at how Australia’s cities are performing:

Brisbane

Brisbane STRs added $12.1 billion to the local economy in June 2024, a 12.3% increase from the year before. With over 6,000 active listings as of August 2025 (up 19% from 2024), demand is on the rise. Events like the NRL Magic Round, Labor Day, and State of Origin lift rates, while the 2032 Olympics continue to drive long-term optimism.

Sydney

As Australia’s most visited international city, Sydney hosted 3.6 million overseas travellers and 3.2 million domestic visitors in the year to March 2025. Supply grew by 19% from the year prior to more than 12,500 listings. Occupancy peaks in summer and during major events, with nightly rates surging on New Year’s Eve. Well-located properties with strong public transport access enjoy the highest returns.

Adelaide

In 2024, Adelaide welcomed over 3.93 million visitors, with domestic travel growing 17% year-on-year. STR supply rose 6%, reaching 5,700 listings in September 2025. Occupancy averaged 72%, boosted by cultural and sporting events like the AFL Gather Round, which alone generated $113.9 million in economic activity. 

Gold Coast 

With 5,200 active listings in 2025 (up 8% year-on-year), the Gold Coast remains one of Australia’s most vibrant STR markets. Occupancy averaged 70% across the past 12 months, with peak demand during December and January. Major events such as the Gold Coast Marathon and Surfers Paradise festivals help drive bookings, while the region’s 13 million visitors in the year to December 2024 underline its position as a tourism hotspot.

Darwin 

Darwin’s STR market is shaped by strong seasonal patterns. During the dry season (May to September), occupancy often exceeds 75%, while year-round averages sit at 64%. The city recorded 600 active listings in 2025, representing 14% growth compared to the previous year. With 815,000 visitors, demand is steady, particularly for travellers seeking a base to explore the Top End’s natural attractions.

Perth 

Perth welcomed 5.26 million visitors in the past year, boosting demand for short-term rentals. The city has around 2,300 active listings, up 6% year-on-year. Occupancy is strongest during summer months, when events and favourable weather draw both domestic and international travellers.

Hobart 

Hobart’s STR market continues to thrive, with more than 3,000 active listings, up 6% year-on-year. Occupancy held steady at 70% across the past 12 months. Major cultural events such as Dark Mofo and the Mona Festival boost demand, while the city also benefits from steady holiday traffic over summer. Hobart welcomed 1.3 million visitors in the year to 2024, cementing its reputation as a cultural and lifestyle destination.

Melbourne 

Melbourne remains a powerhouse of Australia’s STR market, with over 12,500 active listings in 2025. Occupancy reached 76% in the past year, supported by a packed calendar of sporting, music, and cultural events, including the Australian Open, Formula 1 Grand Prix, AFL Grand Final, and major concerts. Visitor numbers were equally impressive, with 13 million people arriving in the year to 2024, underlining the city’s role as a major tourism and events hub.

These short-term rental trends and results show STRs can be highly profitable when managed with market insight and agility. Demand is steady, but competition is increasing. Owners who want their properties to perform need a clear strategy.

What’s changed in the Australian STR market?

The past year has brought both opportunities and challenges for hosts, including:

• More demand from events: As seen above, tourism and cultural events are driving strong bookings. Sydney’s New Year’s Eve, Brisbane’s Magic Round, and Adelaide’s AFL Gather Round are just a few examples where occupancy and nightly rates soared.

• More regulation in major cities: Sydney limits unhosted STRs to 180 nights per year in most council areas. Perth introduced similar restrictions, capping stays at 90 days for unhosted properties unless specific council exemptions are met. These rules are designed to balance housing supply, but they change how homeowners need to approach earnings.

• Rising competition: Supply is growing in many markets. Brisbane now has over 6,000 listings, Sydney more than 12,500. Standing out requires better photos, sharper pricing, and stronger guest reviews.

The bottom line: hosting is still profitable, but a casual approach isn’t enough anymore.

Can you make good money with Airbnbs and STRs vs long-term rentals?

One of the most common questions from homeowners is: “Do Airbnbs make good money?” The short answer is yes. But the long answer is: only if the property is run as a business.

When comparing long-term rentals (LTRs) vs STRs, while LTRs offer consistent long-term income, STRs can generate higher nightly rates with demand-based pricing and the flexibility to block off your property for personal use. 

STRs can deliver:

• Higher nightly rates compared to fixed monthly leases.
• Flexibility to block off time for personal use.
• Dynamic pricing opportunities to earn more during high-demand periods.

But profitability depends on the homeowners’ ability to manage all aspects of their property successfully.

Why hosts miss out on earnings

Plenty of hosts enter the market with optimism, only to discover their returns are far below expectations. Here are the most common pitfalls hosts make:

• Platform fees: Airbnb host-only fees are 15.5%, applied to the booking subtotal. Hosts should adjust their rates to reflect this change in fees.

• Overestimating income potential: Homeowners often assume that every night will book at peak rates. But occupancy fluctuates with seasonality, events, and market conditions. 

• Setting and forgetting rates: Relying on Airbnb’s Smart Pricing alone often leaves money on the table. Without human oversight and local knowledge, rates may be too low when demand is high, or too high when the market cools.

• Listing visibility issues: Professional photos, optimised listings, and response times matter. Listings with poor imagery or slow host replies appear less attractive to guests, even if the property itself is appealing.

• Relying on one platform: Airbnb is powerful, but it’s not the whole market. Booking.com, Vrbo, and other booking platforms all draw different guest segments. Without multi-channel distribution, hosts miss out on bookings.

• Underestimating the workload: Cleaning, restocking, guest communication, and maintenance are continuous. Many hosts underestimate how much work is required, leading to poor reviews and lower occupancy.

When you add it all up, self-managing can become overwhelming. That’s why many hosts turn to professional management to unlock the full income potential.

How Hometime turns properties into performers

At Hometime, our on-the-ground local hosts partner with homeowners to transform their properties into high-performing holiday homes. Our all-inclusive services include:

• Revenue management: Our revenue specialists use real-time data and local insight to adjust rates dynamically. That means maximising income during peak demand and keeping occupancy strong year-round.

• Multi-channel exposure: We don’t stop at Airbnb. Hometime distributes listings across multiple STR websites, including Booking.com and Vrbo, increasing visibility and bookings.

• Listing optimisation: We provide professional photography, tailored descriptions, and fast guest communication to boost conversion rates and secure five-star reviews.

• Guest and property care: From hotel-quality Airbnb cleaning to round-the-clock property maintenance, Hometime ensures guests are looked after and properties stay in top condition.

In Brisbane, for example, Hometime-managed homes outperformed the market with 81% occupancy compared with the city average of 73% in FY24 to FY25. That’s the difference professional management makes.

Unlock your property’s full potential with Hometime in 2025

The Airbnb and short-term rental market is thriving in Australia, but competition is sharper than ever. For homeowners, the opportunity is clear: with the right management, STRs can generate strong passive income. Without the right systems, however, earnings can fall short.

That’s why Hometime exists. We make it simple for property owners to access the full income potential of Airbnb and other platforms, without the day-to-day hassle.

See how much your property could earn in 2025 by booking an obligation-free chat with Hometime: