The short-term rental market in Melbourne: 2026 trends & statistics

Thanks to its reputation as a cultural capital, Melbourne attracts steady visitor numbers each year, making it Australia's second-largest tourist destination behind Sydney. Both domestic and international travellers flock to Melbourne to experience local sightseeing and partake in various events like festivals and concerts, which makes it an attractive market for tourism and accommodation investors.

Learn about performance and travel trends for short-term rental and Airbnb management in Melbourne below:

More demand for short-term rentals in Melbourne

Despite higher supply, market occupancy of short-term rentals in Melbourne increased in the last financial year compared to the year prior. This shows there is a growing demand for short stays in the region.

Average daily rates (ADRs) peak during events

Melbourne’s average daily rates increased notably from FY24 to FY25, which peak around major events like the Australian Open in January and the Formula 1 Australian Grand Prix in March. Major international tours such as the Oasis concerts in Melbourne also contribute to short-term surges, particularly for centrally-located listings. This trend points to growing demand for short-term stays and a willingness from visitors to pay premium prices to secure accommodation close to event venues and transport links.

Pricing around local events is essential for higher returns

While demand for short stays is high, Melbourne's packed events calendar drives strong occupancy across the year, even during-off peak seasons. Visitors often book well in advance, stay for multiple nights, and are willing to pay higher nightly rates to be close to venues, transport hubs, and the CBD. For property owners, these surge periods create opportunities to achieve higher nightly rates over condensed booking windows, which translate to a more predictable STR income compared to markets that rely heavily on seasonality alone.

Check out Hometime's Airbnb pricing guide for more info on how to plan around big events. You can also refer to Melbourne's events calendar below to help stay ahead of pricing trends in 2026:

What do top-performing Airbnbs in Melbourne have in common?

• Convenient location: Properties in central areas and well-connected outer suburbs perform well. Parking and access to public transport are also key guest considerations for ease and convenience.
• Dedicated workspace: Many remote and hybrid workers travel to Melbourne for extended stays, blending work with lifestyle .A dedicated workspace appeals to this segment of business travellers and helps a home stand out and secure bookings.
• Fitness amenities: While not essential, features like a pool or gym are particularly appealing for larger groups (homes) or guests on extended stays (apartments).
• Modern, unique style: Professionally-cleaned properties with contemporary interiors styled with artwork, decor, and soft furnishings can earn up to 2x more than comparable, less-attractively styled properties. Unique styles, from Scandinavian to Hampstons-style or even rustic, will also stand out in the property market for their charm.

Check out our guide on best practices for styling your short-term property:

Why Hometime works for Airbnb management in Melbourne

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

Hometime-managed short-term rentals in Melbourne consistently outperform the rest of the market. We achieve this with our expert in-house listing optimisation and pricing teams, who make sure your home is as bookable as possible.

2. Data-driven insights for optimal dynamic pricing and boost property value

We use dynamic pricing algorithms that automatically fine-tune nightly rates based on real-time market fluctuations, including increased demand during holidays and events. This not only eliminates any market research on your end, but also maximises returns while maintaining high occupancy rates, helping you earn more.

Hometime's data can also give you insights on how to further improve your short stay property in Melbourne and increase its value:

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

3. Dedicated local Airbnb co-hosts in Melbourne 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. We’ll connect you with experienced local co-hosts with years of experience in the short-term rental market in Melbourne, who 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 Melbourne include?

Our full-service Airbnb management includes the following:

• 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 in Melbourne: We'll find the best cleaners in Melbourne 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.
• Hometime also uses its very own property management software that can do it all — from managing bookings, guest management, and even coordinating Airbnb cleaning services. Our dedicated booking platform for guests to increase your visibility, drive more bookings, and rental returns even further.

Ready to see what Hometime’s Airbnb management in Melbourne can do for you? Leave us your details and we’ll be in touch about your short-term rental in Melbourne: