Top 10 Largest Airbnb Markets in Australia

Key Takeaways

• The top 5 Airbnb markets in Australia account for 40% of national short-term rental (STR) revenue.
• Smaller coastal regions like Byron and Shoalhaven outperform in revenue per listing, thanks to limited supply and premium pricing.
• Some high-demand markets, like Cairns, show signs of undersupply, offering potential opportunities for new STR operators to fill market gaps.

If you followed the flow of Airbnb dollars across Australia, you’d land in a handful of hotspots where guest demand is high, nightly rates are strong, and short-term rentals (STRs) are big business.

In this report, we rank the largest Airbnb markets in Australia by revenue to reveal the destinations driving the country’s short-term rental economy. The usual suspects—like Melbourne, Sydney, and the Gold Coast—make a strong showing, but you’ll also find a few surprises: mid-sized coastal regions punching above their weight, and emerging demand hubs that hint at untapped potential.

For short-term rental investors, these rankings are a roadmap to opportunity. Looking at revenue alongside demand and supply offers a clearer sense of which Airbnb markets in Australia are saturated, where pricing power remains strong, and which cities could be the homebase for your next high-performing property.

Factors Defining Large Airbnb Markets

When we talk about the largest Airbnb markets in Australia, pinpointing where the most properties are listed doesn’t give you the full picture. We want to know where guest activity translates into real earnings. We ranked each short-term rental market in Australia by total revenue generated between April 2024 and April 2025 to uncover the top-performing destinations.

Why focus on revenue? It gives us a clearer sense of market performance than listings or demand alone. A city might have thousands of listings, but if they sit vacant or command low nightly rates, the market’s true impact is limited. Revenue blends both guest demand and pricing power, offering a more complete picture of a market’s scale.

We also looked at total booked nights as a measure of demand and average active listings as a measure of supply to support the revenue data. These metrics help identify markets where supply and demand are aligned, or where imbalances may be creating opportunity or competition. For example, some locations in Australia show strong booking activity but underwhelming earnings, which could signal pricing challenges. Others bring in impressive revenue despite modest demand, pointing to high-value inventory or limited availability.

Taken together, these rankings reveal the most Airbnb listings by city in Australia as well as where those listings are generating the greatest economic output. Whether you're a host, investor, or market analyst, understanding these dynamics is key to identifying today’s most active—and potentially lucrative—short-term rental markets in Australia.

Top Airbnb Cities in Australia Based on Size

The rankings, which we get into below, provide some big-picture takeaways worth considering.

Airbnb Market Size Trends in Australia

Airbnb market trends in Australia show remarkable consistency at the top. The five largest Airbnb markets in Australia—Melbourne, Sydney, the Gold Coast, the Sunshine Coast, and Brisbane—not only lead in total revenue but also show minimal variation across demand and active listings. 

This stability speaks to their outsized influence: the top five markets alone account for 40% of national short-term rental revenue, and the top 10 push that figure to 54%. Zooming out further, nearly 70% of all Airbnb revenue in Australia comes from just 20 markets, underscoring how top-heavy the short-term rental landscape really is.

This concentration means that many mid-sized and emerging destinations—while active—are not generating significant economic weight. In fact, 86% of tracked markets fall below $100 million in annual revenue, and 70% remain under $50 million. These figures highlight how Airbnb market size in Australia is dominated by a few key metro and coastal regions, with most other cities playing a much smaller financial role.

That said, there are exceptions that reveal opportunity. Cairns, for example, doesn’t crack the top 10 for revenue or available listings, but ranks in the top 10 for vacation rental demand in Australia. This gap suggests an undersupplied market where short-term rental operators may be missing out on booking potential. Similarly, locations like Byron Bay and Shoalhaven show how markets with modest volume can still rank highly for revenue, thanks to premium nightly rates and brand appeal.

These trends offer a clear takeaway: while size often correlates with revenue, supply constraints and pricing power can tip the scales in favor of smaller or seasonal destinations.

1. Melbourne, Victoria

Melbourne tops the list as the largest Airbnb market in Australia, leading the nation in total revenue, guest demand, and active listings. As a cultural capital known for its festivals, sporting events, and food scene, it consistently draws travelers year-round, making it a powerhouse in the short-term rental market.

Melbourne Market Size

Between April 2024 and April 2025, Melbourne generated over $817 million in short-term rental revenue, with nearly 3 million booked nights and an average of 19,781 active listings. This strong showing across all three major indicators secures its place as the most dominant Airbnb market size in Australia.

What’s driving demand in Melbourne?

Melbourne’s popularity stems from its vibrant cultural calendar, major events like the Australian Open and Grand Prix, and thriving nightlife and dining. It’s also a hub for business travel and international students, which helps sustain a remarkably consistent occupancy rate even outside peak tourist seasons. Occupancy tends to hover between 50% in the quieter spring months and 60% during the busy holidays and winter months.

Melbourne Investment Insights

As the country’s most active short-term rental city, Melbourne presents one of the top Airbnb investment opportunities in Australia with an 81/100 Market Score—but it’s not without complexity. Local councils have introduced varied regulations, including restrictions on the number of nights a property can be rented. Still, for those who stay compliant, properties in central neighborhoods or near transport hubs remain in high demand. High occupancy potential and pricing power make Melbourne a compelling market for investors seeking scale and resilience.

2. Sydney, New South Wales

Sydney ranks second among the largest Airbnb markets in Australia, with impressive numbers across demand, revenue, and active listings. As a world-renowned destination, Sydney consistently delivers strong performance in the short-term rental market.

Sydney Market Size

From April 2024 to April 2025, Sydney recorded 2.1 million booked nights, earned $689 million in revenue, and maintained an average of 12,911 active listings. This across-the-board strength confirms its place as one of the top Airbnb cities in Australia.

What’s driving demand in Sydney?

Sydney’s global profile as Australia’s most iconic city—home to the Opera House, Bondi Beach, and Harbour Bridge—makes it a year-round magnet for international tourists, domestic travelers, and business visitors. Major festivals, cruise departures, and its role as a key gateway city add to the city’s strong Airbnb market size.

Sydney Investment Insights

With a Market Score of 95, Sydney offers strong Airbnb investment opportunities in Australia, especially for centrally located or waterfront properties. That said, short-term rental regulations vary by local government area, with some zones imposing caps on non-hosted stays. Despite these limitations, Sydney’s steady stream of visitors and high average daily rates (ADRs) help ensure strong revenue potential for compliant listings in desirable neighborhoods.

3. ​​Gold Coast, Queensland

The Gold Coast ranks third among the largest Airbnb markets in Australia, with a strong showing in guest demand, total revenue, and active listings. Known for its beaches, nightlife, and year-round sunshine, this coastal hub is a top contender in Australia's short-term rental market.

Gold Coast market size

Between April 2024 and April 2025, the Gold Coast welcomed 1.35 million booked nights, earned $510 million in total revenue, and maintained an average of 7,183 active listings. Its consistency across the board positions it as one of the most well-rounded Airbnb cities by market size in Australia.

What’s driving demand in the Gold Coast?

Tourism is the Gold Coast’s bread and butter. With major attractions like Surfers Paradise, theme parks, and world-class surfing beaches, demand is steady across all age groups. The city also benefits from strong domestic travel, especially during school holidays and warm-weather months.

Investment insights for the Gold Coast

The Airbnb investment opportunities in Australia don’t get much sunnier than the Gold Coast. While some local regulations apply—particularly in residential strata buildings—tourism zoning and established infrastructure support a strong STR ecosystem. Properties close to beaches, nightlife, and family attractions tend to see the strongest performance.

4. Sunshine Coast, Queensland

The Sunshine Coast secures the fourth spot among the largest Airbnb markets in Australia by revenue, with solid performance across guest demand and listing volume. This coastal destination balances lifestyle appeal with investment potential, making it a standout among short-term rental markets in Australia.

Sunshine Coast market size

From April 2024 to April 2025, the Sunshine Coast brought in $446 million in revenue from 1.09 million booked nights, supported by an average of 6,539 active listings. Ranking fifth for both demand and supply, its ability to convert strong interest into earnings puts it firmly in Australia’s top Airbnb cities by market size.

What’s driving demand in the Sunshine Coast?

Natural beauty and family-friendly tourism are major draws here. National parks, beaches, and a growing food and arts scene keep bookings steady, especially during school holidays and long weekends. Its relaxed pace makes it a go-to for domestic travelers looking to unwind.

Sunshine Coast investment insights

With year-round appeal and relatively stable regulations reflected in a 93 Market Score, the Sunshine Coast offers promising Airbnb investment opportunities in Australia. Its performance suggests healthy pricing power with an average daily rate of $411 AUD. While it doesn’t quite reach the revenue heights of Melbourne or Sydney, it offers a lower barrier to entry and strong seasonal returns. Listings close to the water or in areas like Pelican Waters and Noosa Heads tend to yield the strongest returns.

5. Brisbane, Queensland

Brisbane rounds out the top five largest Airbnb markets in Australia by revenue, demonstrating strong short-term rental performance in a major metro with growing tourism and business appeal.

Brisbane market size

Between April 2024 and April 2025, Brisbane earned $312.9 million in short-term rental revenue, driven by 1.17 million booked nights and an average of 6,874 active listings. It ranks just behind the Sunshine Coast in total revenue but edges ahead in both demand and listing count.

What’s driving demand in Brisbane?

Brisbane benefits from its role as a gateway city—close to the Gold and Sunshine Coasts but offering its own mix of events, riverfront attractions, and growing culinary and cultural scenes. Demand spikes during major festivals and sporting events, and the city’s affordability compared to Sydney and Melbourne attracts a steady flow of travelers.

Brisbane investment insights

As a large, diversified market, Brisbane presents compelling Airbnb investment opportunities in Australia. This is reflected in its Market Score of 97 and 19% year-over-year growth in available short-term rental listings. Regulation is relatively investor-friendly, and properties located in the Salisbury, Highgate-Hill, and Sunnybank Hills submarkets tend to perform best. With consistent demand and competitive supply, Brisbane offers strong fundamentals for both new and experienced STR operators.

6. Shoalhaven, New South Wales

Shoalhaven City Council secures its spot as one of the largest Airbnb markets in Australia by revenue, even as it sits slightly lower in demand and listing count. Its elevated earnings highlight the strength of coastal getaways in Australia’s short-term rental landscape.

Shoalhaven market size

From April 2024 to April 2025, Shoalhaven recorded $243.4 million in STR revenue, driven by 482,401 booked nights and an average of 3,854 active listings. This places it sixth for overall Airbnb market size in Australia, showing how smaller regional destinations can rival urban hubs in revenue generation.

What’s driving demand in Shoalhaven?

Shoalhaven is known for its pristine beaches, wine country, and laid-back lifestyle, making it a magnet for holidaymakers from Sydney and Canberra. The region's appeal peaks during summer and school holidays, but its natural beauty and local food scene support demand year-round.

Shoalhaven investment insights

With moderate supply and high seasonal appeal, Shoalhaven represents a strong Airbnb investment opportunity in Australia. Listings here can command premium rates during peak periods, with the average short-term rental bringing in close to $10,000 AUD during the peak month of January. Investors should plan for slower shoulder seasons, though, as monthly revenue falls as low as $4,000 AUD per month between May and August. Regulatory policies can vary by township, so localized research is essential.

7. Adelaide, South Australia

Adelaide continues to hold its own among the top Airbnb cities in Australia, combining steady guest interest with a growing supply of listings and reliable revenue performance.

Adelaide market size

Between April 2024 and April 2025, Adelaide generated $193.5 million in short-term rental revenue, with 682,379 booked nights and an average of 4,300 active listings. Its consistent showing across all three metrics puts it firmly among the largest Airbnb markets in Australia.

What’s driving demand in Adelaide?

Known for its arts festivals, food and wine culture, and easy access to the Barossa Valley, Adelaide draws both domestic and international travelers. Its affordability compared to Sydney or Melbourne makes it attractive for longer stays, while events like the Adelaide Fringe and WOMADelaide help spike seasonal demand.

Adelaide investment insights

Adelaide presents a balanced Airbnb investment opportunity in Australia. While average daily rates are more modest than in premium coastal destinations, with 1-2 bedrooms earning an average of $216 AUD per night, occupancy tends to be strong year-round. With a healthy number of listings and demand to match, Adelaide offers stability for hosts—particularly those in the Lightsview, Gepps-Cross, and McIaren-Flat submarkets.

8. Byron, New South Wales

Byron Bay stands out as one of Australia’s most profitable Airbnb markets. It earns strong revenue through high nightly rates and strong guest appeal, even with fewer listings and bookings than larger cities.

Byron market size

From April 2024 to April 2025, Byron recorded $171.3 million in Airbnb revenue, with 315,669 booked nights and an average of 2,017 active listings. While it falls outside the top 10 in terms of demand and supply, its 8th-place ranking in revenue highlights the pricing power of this iconic coastal destination.

What’s driving demand in Byron?

Byron is synonymous with laid-back luxury and wellness travel. Its beaches, surf culture, and boutique accommodation scene attract both domestic weekenders and international tourists willing to pay a premium. Events like Splendour in the Grass also drive seasonal demand spikes.

Byron investment insights

Byron’s limited supply and consistently high nightly rates—averaging $543 AUD—create one of the strongest revenue-per-listing profiles in Australia’s short-term rental market. However, local regulations have tightened significantly in recent years, capping the number of rental nights allowed in some areas. For those operating within the rules, Byron offers one of the most profitable but tightly held Airbnb investment opportunities in Australia.

9. Perth, Western Australia

Perth ranks ninth among the largest Airbnb markets in Australia by revenue, supported by strong guest demand and a healthy number of listings. Though it trails behind cities like Adelaide and Byron in earnings, it outpaces both in demand.

Perth market size

With 757,414 booked nights and $167.3 million in revenue from an average of 3,932 listings, Perth ranks sixth for demand, ninth for revenue, and seventh for listing count. Its balance of size and demand positions it as a solid mid-tier market.

What’s driving demand in Perth?

Tourism in Perth is driven by its sunny climate, growing events scene, and its role as a gateway to natural wonders like Rottnest Island and the Pinnacles Desert. Business travel and intrastate tourism also contribute to steady booking activity, helping to sustain demand year-round.

Perth investment insights

Perth has a strong Market Score of 97, with average annual revenue hovering around $45,000 AUD. While Perth’s average daily rates aren’t as high as in more exclusive markets at an average of $222 AUD, its consistent demand and relatively affordable property prices may offer good value for long-term investors. For operators looking for stable performance in a less saturated market, Perth presents an attractive option in Australia’s short-term rental landscape.

10. Wyong, New South Wales

Wyong secures the 10th spot among the largest Airbnb markets in Australia by revenue, though its rankings for demand and listings come in slightly lower at 13th and 9th, respectively. This coastal region blends relaxed beachside living with growing visitor interest, making it a quietly strong performer in New South Wales.

Wyong market size

Between April 2024 and April 2025, Wyong recorded 299,246 booked nights and $149.2 million in total Airbnb revenue, supported by an average of 2,599 active listings. While not among the most visited, Wyong’s listings deliver solid returns relative to demand, highlighting its pricing potential.

What’s driving demand in Wyong?

Wyong draws both holidaymakers and weekenders from Sydney with its mix of scenic coastlines, national parks, and family-friendly attractions like The Entrance and Tuggerah Lake. Its accessibility and affordability make it a growing favorite for domestic travel, especially during school holidays and summer months.

Wyong investment insights

While Wyong ranks among the largest Airbnb markets in Australia by revenue, it may not be the most lucrative for investors overall. With a Market Score of just 47 and average occupancy hovering around 43%—peaking at 60% in summer—many listings face seasonal and performance challenges. However, there are standout submarkets worth watching: Little Jilliby, Phegans Bay, and Yarramalong all boast Market Scores of 90 or above, signaling high-performing pockets with strong guest demand and solid revenue potential for well-positioned listings.

Frequently Asked Questions

Where is the best place to have an Airbnb in Australia?

It depends on what you value—volume, pricing power, or long-term stability. If you're looking for scale, Melbourne and Sydney are hard to beat. If you want high revenue per listing, coastal markets like Byron Bay or Shoalhaven stand out. Identifying the right opportunity requires you to look beyond just bookings: check occupancy rates, the regulatory environment, and property values relative to potential income. Our report on the Most Profitable Cities for Airbnb in Australia is a great place to start.

What is the biggest market for Airbnb?

In Australia, Melbourne tops the list across all major size metrics: revenue, guest demand, and active listings. But “biggest” is relative. Toronto is the largest market in Canada by revenue, but it's smaller than Brisbane. Meanwhile, Orlando outpaces every Australian city in demand. This shows how Airbnb market size can vary by country, and why it's important to evaluate each market in context.

Where is the highest demand for Airbnb in Australia?

Melbourne again leads the way, with nearly 3 million nights booked over the past year. Sydney and the Gold Coast follow closely behind. High demand reflects strong traveler interest, but investors should also consider supply and nightly rates. Some smaller markets, like Byron, deliver better returns with fewer bookings.

What are the best suburbs for Airbnb in Australia?

Australia is home to over 5,000 short-term rental submarkets, and more than 140 have a Market Score of 90 or higher, signaling a very healthy market. A few top-performing suburbs with near-perfect scores include Toowong, Northbridge, Birkdale, Chermside, Newcastle, and Albany-Creek. These areas combine strong demand, solid pricing, and consistent performance, making them top picks for Airbnb hosts and investors alike.