Airbnb Occupancy Rate is one of the most critical metrics for short-term rental hosts and investors. It measures the percentage of time your property is booked within a specific period. A high occupancy rate indicates a popular listing, leading to more stable income and better returns on investment. In this guide, we'll explore everything you need to know about Airbnb occupancy rates in Australia, including top-performing cities, factors affecting occupancy, and actionable tips to boost your bookings.
What is Airbnb Occupancy Rate?
The Airbnb occupancy rate is a percentage that shows how often your property is booked compared to its total availability. For example, if your property is booked for 21 out of 30 days in a month, your occupancy rate would be:
(21 ÷ 30) × 100 = 70%
This means your property is occupied 70% of the time, with 30% vacancy. Understanding this metric is crucial for maximizing your short-term rental income.
Why is Airbnb Occupancy Rate Important?
The occupancy rate is more than just a number—it's a key performance indicator (KPI) that impacts your revenue, pricing strategy, and investment decisions. Here's why it matters:
Accurate Revenue Prediction: By analyzing occupancy rates, you can estimate potential earnings and plan your finances effectively.
Competitive Pricing: A high occupancy rate helps you set optimal prices—avoiding overpricing (which reduces bookings) or underpricing (which hurts profitability).
Property Performance Evaluation: If your occupancy rate is below the market average, it's time to improve your listing (e.g., better photos, amenities, or guest experiences).
Investment Decisions: For investors, high occupancy rates indicate strong demand in a market, making it a lucrative opportunity.
Airbnb Occupancy Rates Australia 2025
Recent data from Airbtics reveals fascinating insights into Airbnb occupancy rates across Australia for the 12 months leading up to August 2024. Let's explore the performance of key cities and regions:
Average Airbnb occupancy rates in Australia in the 12 months to August 2024
Source: Airbtics, August 2024. Data reflects the 12 months leading to August 2024.
City/Region | State | Zip Code | Occupancy Rate (%) |
Perth | WA | 6000 | 84% |
Brisbane | QLD | 4000 | 79% |
Sydney | NSW | 2000 | 78% |
Noosa Heads | QLD | 4567 | 77% |
Gold Coast | QLD | 4217 | 77% |
Cairns | QLD | 4870 | 75% |
Sunshine Coast | QLD | 4551 | 72% |
Hobart | TAS | 7000 | 72% |
Canberra | ACT | 2601 | 72% |
Adelaide | SA | 5000 | 71% |
Townsville | QLD | 4810 | 71% |
Darwin | NT | 0800 | 69% |
Melbourne | VIC | 3000 | 68% |
Byron Bay | NSW | 2481 | 66% |
Dunsborough | WA | 6281 | 65% |
Wollongong | NSW | 2500 | 65% |
Greater Bendigo | VIC | 3550 | 62% |
Ballarat | VIC | 3350 | 60% |
Geelong | VIC | 3220 | 52% |
Central Coast | NSW | 2250 | 47% |
Key Insights from the 2024 Airbnb Occupancy Data
In this data analysis, Perth, Brisbane, Sydney, and Melbourne have emerged as the top cities in Australia in terms of average Airbnb occupancy rate, showcasing strong market demand. High occupancy rates in these cities mean that hosts can generate more stable short-term rental income and maintain high returns in a competitive market.
Perth Leads with an 84% Occupancy Rate
Perth has emerged as the top city for Airbnb occupancy, boasting an impressive 84% rate. This surge is driven by the city's growing tourism sector and a tight long-term rental market, pushing more travelers toward short-term accommodation options.
Brisbane and Sydney Follow Closely
Brisbane (79%) and Sydney (78%) are hot on Perth's heels, thanks to their thriving tourism and business sectors. These cities continue to attract both domestic and international visitors, making them prime locations for Airbnb hosts.
Queensland Dominates with High-Performing Regions
Queensland is a standout performer, with Noosa Heads, Gold Coast, Cairns, and Sunshine Coast all achieving occupancy rates above 70%. The state's stunning beaches, warm climate, and vibrant tourist attractions make it a favorite among travelers.
Melbourne Holds Steady at 68%
Despite facing stiff competition, Melbourne maintains a steady 68% occupancy rate. The city's cultural events, food scene, and large international student population contribute to consistent demand for short-term rentals.
Regional Gems Like Byron Bay and Dunsborough Shine
Smaller regions like Dunsborough (65%) and Byron Bay (66%) continue to attract visitors seeking a more relaxed and scenic getaway. These areas are ideal for hosts looking to tap into the growing demand for unique, off-the-beaten-path experiences.
Lower Occupancy in Areas Like Geelong and Central Coast
While cities like Geelong (52%) and the Central Coast (47%) have lower occupancy rates, they still present opportunities for hosts willing to cater to niche markets or invest in marketing strategies to boost visibility.
Melbourne's Airbnb Market Performance
Although Melbourne's Airbnb occupancy rate is slightly lower than Perth, Brisbane, and Sydney, it still maintains solid market performance, reflecting its strong attraction as Australia's cultural and economic center. As the second-largest city in Australia, Melbourne has long been a popular destination for both domestic and international tourists, whether for travel, business trips, or short-term stays, and Airbnb demand remains relatively steady.
Melbourne's multiculturalism and rich events calendar are major advantages for its short-term rental market. Known globally as a cultural capital, Melbourne hosts a wide variety of international events throughout the year, including the Australian Open, Melbourne Cup, International Arts Festival, and F1 Grand Prix. These events attract a large number of tourists and participants, driving up demand for short-term rentals, allowing Airbnb hosts to enjoy high occupancy rates and revenue during peak seasons.
Additionally, Melbourne's international student market contributes to steady occupancy rates for Airbnb properties. Melbourne is home to several top-ranking universities, including the University of Melbourne, Monash University, and RMIT University, which attract a large number of international students and their families every year. Many international students choose Airbnb as transitional accommodation before securing long-term rentals, further boosting market demand.
What Does This Mean for Airbnb Hosts and Investors?
The data highlights the importance of location when it comes to maximizing Airbnb occupancy rates. Cities like Perth, Brisbane, and Sydney offer high demand, but they also come with increased competition. On the other hand, regional areas like Noosa Heads and Byron Bay provide opportunities for hosts to capitalize on their unique appeal.
For investors, focusing on cities with strong tourism growth, business activity, and limited long-term rental options can yield higher returns. Additionally, understanding local trends—such as seasonal demand or event-driven spikes—can help optimize pricing and occupancy strategies.
5 Key Factors Affecting Airbnb Occupancy Rates
1. Travel Trends
Travel trends have a significant impact on Airbnb occupancy rates. Major cities like Sydney, Brisbane, and Perth enjoy stable year-round tourism demand, keeping their short-term rental markets at high occupancy. These cities are not only top destinations for domestic and international tourists but also attract a significant number of business travelers, ensuring stable demand for hosts. In contrast, seasonal tourist destinations like Cairns and the Gold Coast may see peak occupancy during holiday seasons but experience a decline during off-peak periods. Understanding these trends helps hosts plan their rental strategies effectively and avoid revenue fluctuations during low seasons.
2. Supply and Demand Balance
The balance between supply and demand is another key factor influencing short-term rental market performance. For example, Perth and Brisbane exhibit high occupancy rates due to a balanced relationship between supply and demand, meaning their markets have not become overcrowded and rental demand remains steady. On the other hand, places like the Central Coast may experience a decline in occupancy rates if too many rental properties are added too quickly. Hosts should carefully consider local supply and demand conditions when selecting investment locations to maximize returns.
3. Pricing Strategy
A flexible pricing strategy can significantly improve Airbnb occupancy rates. Hosts can adjust prices based on market demand, seasonal changes, and local events. For example, using Airbnb's smart pricing tool, which automatically adjusts prices based on real-time market demand, can help secure more bookings during peak seasons and maintain competitiveness during off-peak times. Third-party pricing tools also help hosts stay informed about current market price trends, ensuring their rates remain attractive and boosting occupancy.
4. Property Quality and Reviews
High-quality properties not only attract more guests but also earn better reviews, which are crucial for increasing occupancy. High-quality photos, well-crafted property descriptions, and positive reviews from previous guests all enhance the property's appeal. When potential guests see positive feedback from others, they are more likely to book, which increases visibility and encourages more bookings. Regularly updating property photos and descriptions is an effective way to stay competitive.
5. Local Events and Attractions
Local events and attractions significantly affect Airbnb occupancy rates. In major cities like Melbourne and Sydney, short-term rental demand tends to surge during festivals, sporting events, and business conferences. For instance, Melbourne's Australian Open and Sydney's various international events draw large numbers of international tourists and business people, boosting occupancy rates. Hosts can adjust their pricing and marketing strategies based on local events to align with market demand and increase revenue.
How to Improve Your Airbnb Occupancy Rate
Optimize Your Listing: Use high-quality photos, write compelling descriptions, and highlight unique amenities.
Adopt Dynamic Pricing: Adjust prices based on demand, seasonality, and local events.
Enhance Guest Experience: Offer exceptional service to earn positive reviews and repeat bookings.
Leverage Local Events: Promote your listing during festivals, conferences, and peak tourist seasons.
Target Long-Term Stays: Cater to remote workers and long-term travelers by offering discounts for extended stays.
Future Trends in Australia's Airbnb Market
Rise of Regional and Rural Markets
With the increasing demand for nature-based experiences and peaceful getaways, regional and rural areas are becoming hotspots for short-term rentals. Travelers are seeking destinations that offer a break from urban life, particularly in locations like Noosa Heads with its pristine beaches, Byron Bay's wellness and eco-tourism offerings, and Margaret River's renowned wineries and natural beauty. This trend presents a significant opportunity for hosts to capitalize on growing demand by offering unique experiences such as farm stays, eco-friendly accommodations, or adventure packages. Success in these markets depends on effectively highlighting local attractions, from hiking trails to wildlife experiences and vineyard tours, to attract nature-loving travelers.
Increased Demand for Long-Term Stays
The emergence of remote work and digital nomadism has transformed the short-term rental landscape, creating substantial demand for extended stays exceeding 28 days. Modern travelers are increasingly blending work and leisure, seeking well-equipped properties that can serve as both comfortable living spaces and productive work environments. This shift benefits hosts through stable income streams and reduced operational costs associated with frequent guest turnover. To capitalize on this trend, hosts should consider offering monthly stay discounts and ensuring properties feature essential amenities like dedicated workspaces, reliable high-speed internet, and ergonomic furniture.
Green Tourism and Sustainable Stays
Sustainability has evolved from a niche consideration to a fundamental market driver, with modern travelers actively seeking eco-friendly accommodations that align with their environmental values. Successful properties in this segment typically feature renewable energy sources, implement sustainable materials and practices, and offer easy access to public transport or bike-sharing services. Eco-conscious travelers demonstrate willingness to pay premium rates for sustainable accommodations, creating a compelling business case for green investments. Hosts can enhance their market position by adopting energy-efficient appliances, water-saving fixtures, and reusable amenities, while effectively communicating these features in their listing descriptions.
Technology-Driven Personalization
The integration of advanced technology is revolutionizing guest experiences through enhanced personalization. Smart locks, automated check-in processes, and AI-powered communication tools have become standard expectations in the modern short-term rental market. These technological solutions not only improve guest satisfaction but also drive better reviews and encourage repeat bookings. Property owners can maximize these benefits by implementing smart home devices like programmable thermostats and voice-controlled assistants, while also providing personalized local recommendations for dining, attractions, and activities.
Conclusion
Understanding and optimizing your Airbnb occupancy rate is essential for maximizing your short-term rental income. By focusing on top-performing cities, adapting to market trends, and implementing effective strategies, you can boost your bookings and achieve long-term success in Australia's competitive Airbnb market.
Ready to improve your Airbnb occupancy rate? Start by analyzing your current performance, optimizing your listing, and staying ahead of market trends. With the right approach and RightKeyBnB's professional Airbnb management service, you can turn your property into a high-demand, high-revenue listing while enjoying completely hands-off property management. Contact us today for a free consultation and discover how we can maximize your Airbnb's potential.
FAQs About Airbnb Occupancy Rate
1. What is the average Airbnb occupancy rate in Australia?
The average occupancy rates vary by region, with Perth leading at 84% and Central Coast at the lower end with 47%.
2. How can I improve my Airbnb occupancy rate?
Focus on optimizing your listing, implementing dynamic pricing, and enhancing the guest experience to increase occupancy.
3. Which city has the highest Airbnb occupancy rate in Australia?
Perth (WA) has the highest occupancy rate at 84%, followed by Brisbane (79%) and Sydney (78%).
4. What factors affect Airbnb occupancy rates?
Tourism trends, pricing strategies, property quality, and local events significantly impact occupancy rates.