The Sydney rental market in 2026: STR trends and statistics

Australia's most popular tourist destination, Sydney attracted 3.6 million international visitors and 3.2 million domestic visitors in the year to March 2025. Sydney's visitor numbers continue to grow every year, with reliable peaks in summer (especially from Christmas to New Year's) and maintaining a stable level of demand during the off-peak seasons due to events, festivals, and seasonal activities. This makes Sydney a very strong investment market for accommodations like short-term rentals.

Curious about the key market trends that shape the performance of short-term rental and Airbnb management in Sydney? Read on below:

Short-term rentals in Sydney are in demand year-round

Occupancy rates for short-term rentals trend higher during the warmer months, especially in summer when numbers peak around Christmas and New Year. And while occupancy slows down a little at the end of autumn and into winter, spikes in occupancy during events and steady business travel numbers help fill up properties. This results in a strong year-round market for short-term rental homeowners.

Sydney events drive growth to the local STR market, even during off-peak seasons

Another big tourist draw for Sydney is that it is host to some of the country's biggest annual events, such as Mardi Gras and Vivid Sydney, which draw in huge crowds every year. Aside from annual events, international artists also frequently tour Sydney as part of their Australian tours, especially after the precinct concert cap for Sydney Cricket Ground was finally raised from 4 to 20 per year. This means that Airbnb owners can expect even more events-based spikes in rates and occupancy this 2026 to meet the heightened demand, especially for properties with easy access to concert venues.

Plan ahead by taking a look at some of the popular events happening in Sydney this year:

Average daily rates for Sydney short-term rentals fluctuate seasonally

In line with occupancy rates, average daily rates (ADRs) for short-term rentals in Sydney are also higher in summer, peaking aroundthe Christmas and New Year's holidays. The highest rates are on New Year's Eve, particularly for properties in and around Sydney's CBD and with good public transport connections.

Hometime tip: Check out our list of the best Airbnb markets in Australia for more info on how other short-term rental markets in Australia are performing.

What do top-performing Airbnbs have in common?

• Convenient location: Properties in central areas or well-connected outer suburbs perform well, especially in close proximity to popular event venues. Parking and access to public transport are also key guest considerations for ease and convenience.
• Outdoor spaces: Well-furnished outdoor areas are a big draw, especially if they have leafy surrounds, and skyline or water views.
• Modern, welcoming style: Clean, contemporary interiors styled with artwork, decor, and soft furnishings create a polished yet inviting feel. Well-styled properties in Sydney can earn up to 2x more than comparable, less-attractively styled properties.
• Amenities for longer stays: Bookings over 21 consecutive nights are exempt from NSW’s 180-night cap on STR bookings. Attracting long-stay guests with features like a fully-equipped kitchen, high-speed wi-fi, comfortable furnishings, and a in-unit laundry is key to maximising occupancy and earnings.

Why Hometime works for Airbnb management in Sydney

1. Hometime homes in Sydney have above-market occupancy rates

Hometime homes consistently outperform the regular short-term rental market in Sydney, despite continually increasing supply and competition. The occupancy rates of Hometime properties have remained steady and the overall market occupancy has even increased in the last financial year. We achieve this through our in-house listing optimisation, with our local Airbnb experts and data analytics teams making sure your home is as bookable as possible, increasing your occupancy rates and average daily rates (ADRs) even during the off-peak season.

2. Data-driven insights to determine nightly rates and boost property value

With Hometime’s Airbnb management, you won’t need to worry about doing market research to determine pricing — we’ll do that for you! Our algorithms will fine-tune nightly rates based on current market fluctuations to make sure that we maximise returns while maintaining high occupancy rates, helping you earn more:

Hometime’s data can also provide various insights to increase your property’s value, such as:

• Which areas in Sydney are most popular during which times of the year
• Which amenities the most popular Airbnbs in Sydney feature
• What you can add to your short-term rental to increase its booking appeal, leading to an increase in occupancy rates and nightly rates.

3. Top-quality guest communication to help you get great reviews

Hometime is a trusted Airbnb management company in Australia that delivers quality results to both short-term rental owners and Airbnb guests:

• 1 million+ nights booked across Australia
• 4.8/5 average guest rating on Airbnb
• 3,500+ properties managed since 2016

Hometime uses its very own property management software that can do it all — from managing bookings, guest management, and even coordinating Airbnb cleaning services. We also offer a dedicated booking platform for guests to increase your visibility, drive more bookings, and drive rental returns further.

4. Dedicated local Airbnb managers in Sydney 

We’ll connect you with experienced local co-hosts with years of experience in Sydney’s short-term rental market and have welcomed many guests to your area. They will be your first point of contact and will manage everything related to your home, from managing bookings, communicating and vetting guests, and assisting them with any concerns.

What does Hometime’s Airbnb management in Sydney include?

Our full-service Airbnb management includes:

• Property onboarding: We’ll help you set up your short-term rental as quickly as we can so you can start getting bookings ASAP.
• Listing optimisation: Our team constantly works on improving your listing through great content showcasing the best of the property with high-quality professional photos, and creating detailed guides for your guests. This includes Airbnb styling and photography to make your Airbnb stand out and to maximise its appeal.
  
• Dynamic pricing strategy: Hometime’s pricing analysts and market experts will help optimise your revenue while increasing occupancy at the same time.
  
• Airbnb cleaning services: We'll find the best cleaners in Sydney for regular cleans and restocking between stays, paid for using the built-in cleaning fee from the booking. No need to pay out of pocket between guest stays.‍
• Guest communication and management: We go the extra mile to ensure your guests enjoy every part of their stay, from making the booking, checking in, checking out, and everything in between. This includes taking care of maintenance issues quickly, providing alternatives for late-night arrivals, and even meeting them in person when needed!‍
• Property maintenance: Hometime’s local Airbnb experts will sort out all your maintenance needs to make both you and your guests happy. We’ll also do our best to get you the best rates for services in the area due to our close relationships with local businesses.

Ready to see what Hometime’s Airbnb management can do for you? Leave us your details and we’ll be in touch about how we can help with Airbnb management in Sydney: