The top spots to earn big Airbnb money revealed
South Australian short-term rental property owners are earning the most for their investment income, while Victoria was the least accommodating state or territory for property investors.
There’s a huge gulf between the locations attracting the highest returns for Airbnb property owners compared to some capital cities that are very affordable.
Research by MortgageBroker.com.au delved into Airbnb data to identify which Australian locations are the most lucrative for Airbnb owners.
Top states earning the most from Airbnb
| Rank | State | Average price per night (A$) | Airbnb average yearly income |
|---|---|---|---|
| 1 | South Australia | $314 | $25,864 |
| 2 | New South Wales | $304 | $17,483 |
| 3 | Queensland | $292 | $13,725 |
| 4 | Tasmania | $254 | $12,706 |
| 5 | Victoria | $169 | $7,611 |
*mortgage pay-off date not including interest.
The research revealed that South Australia is the best state for Airbnb hosts to earn money.
With an average earning of $314 a night and a $25,864 yearly income. Barossa Valley with 337 Airbnb listings is known as one of Australia’s best wine regions, producing 20 per cent of all Australian wines, and attracts visitors from around the world.
Airbnbs are lucrative here, especially with large groups of tourists. Light Pass in Barossa Valley boasts the highest yearly average income in Australia with $40,410.
New South Wales is the second highest-earning state. New South Welshmen are charging an average of $304 a night, raking in $17,483 annually. Sydney boasts an enormous number of listings at 15,548 with an average of 72 nights booked per year.
Queensland comes in at third place with $13,725 earnings annually and offers one of the cheapest nightly rental rates at $292 despite being a bustling hub for visitors. It is especially popular for nature lovers, with the state being home to five of Australia's eleven World Natural Heritage areas.
Tasmania comes in fourth with $12,706 and low rental rates ($254).
In last place is Victoria with $7,611, the state is home to the ever-popular tourist hotspot, Melbourne. Fierce accommodation competition could be impacting Victoria’s Airbnb potential, averaging the lowest night rates of the ranking states at only $169.
Victoria is also proposing a 7.5 per cent tax on short-term accommodation in a bid to encourage short-stay property owners to move their properties into the long-term rental market.
Australia's highest-earning Airbnb locations
| Rank | City/Area/Suburb | Area | State | Average price per night (A$) | Airbnb average yearly income |
|---|---|---|---|---|---|
| 1 | Light Pass | Barossa Valley | South Australia | $375 | $40,410 |
| 2 | Marananga | Barossa Valley | South Australia | $545 | $40,126 |
| 3 | Moculta | Barossa Valley | South Australia | $813 | $37,522 |
| 4 | Tanunda | Barossa Valley | South Australia | $361 | $33,340 |
| 5 | Gawler River | Barossa Valley | South Australia | $130 | $29,700 |
| 6 | Nuriootpa | Barossa Valley | South Australia | $428 | $26,847 |
| 7 | Glamorgan/Spring Bay | Tasmania | Tasmania | $263 | $26,597 |
| 8 | Yarra Ranges | Melbourne | Victoria | $313 | $25,839 |
| 9 | Tasman | Tasmania | Tasmania | $203 | $25,078 |
| 10 | Flaxman Valley | Barossa Valley | South Australia | $442 | $24,160 |
Barossa Valley dominates the top spots for highest earnings from Airbnb, with Light Pass charging on the lower side with $375 per night but each property averaging a whopping 106 nights booked per year making the average yearly income $40,410. This is unsurprising as Barossa Valley Tourist Park is just a short distance from the suburb.
Properties in Glamorgan/Spring Bay in Tasmania sit in seventh place, earning around $26,597 by charging around $263 a night, for an average of 111 nights per year.
Tax reform challenged
According to Airbnb, non-hosted short-term rental accommodation accounts for 1-2 per cent of dwellings in Australian states.
CEO of the Real Estate Institute of Victoria (REIV), Kelly Ryan, said that state’s proposed tax could do more harm than good, stating that it is unlikely to achieve its intended goals.
“I think, more than likely, it will hinder efforts to alleviate the housing crisis,” Ms Ryan said.
“The perception of yet another tax on the horizon is certainly not helpful, and I’m not convinced it will lead to a significant shift of properties from short-stay to long-term rentals.”
“Investors might just leave the market entirely, which would reduce the pool of properties available for any purpose—whether short-term or long-term,” she said.
“I don’t see this move bringing a significant number of properties back into the long-term market.”
