🎯 STRisker: Bulletin - Victoria, Australia

Just a Plateau: Inside Victoria’s Stalled Short-Term Rentals

Victoria’s short-term rental market has officially hit pause, and the timing couldn’t be more awkward. Just as the state’s new 7.5% short-stay levy was meant to start delivering a steady funding stream for social housing, growth across platforms like Airbnb and Stayz has stalled.

According to AirDNA data, the average number of short-stay listings across Victoria barely moved in 2025, sitting at roughly 43,735 properties per day virtually unchanged from the year before.

That flatline followed a strong post-pandemic surge, with listings jumping 22% in 2023 and another 12% in 2024. But in 2025, the momentum disappeared. While some hosts point to the new levy as a deterrent, analysts say the real story is simpler, demand has cooled. Accommodation demand growth slowed to just 2% in 2025, creating a market where supply now outweighs demand. Lower occupancy rates have made many potential hosts think twice about entering the space.

The Age

Growth in short-stay listings has stagnated, threatening revenue from the new Airbnb levy, but experts are not convinced there will now be more long-term rentals.

Growth in short-stay listings has stagnated,...

The levy itself, introduced in January 2025 and announced two years earlier, applies to stays under 28 days. The government positioned it as a two-for-one policy encouraging property owners to move listings back into the long-term rental pool while raising money for social and affordable housing through Homes Victoria. The target? Around $75 million a year, with a quarter earmarked for regional communities.

InvestDoor auf Instagram: “Let’s talk about the part almost no one shows on social media: regulation. Across Australia, short-term rentals are being tightened — and the pace is accelerating. Key changes to know: • Victoria – From Jan 2025, a 7.5% short-stay levy on stays under 28 days via Airbnb/Vrbo (on top of GST and income tax). Owners corporations can vote (75% majority) to effectively ban non-PPR short-stay accommodation. • New South Wales – Mandatory state register, caps on unhosted nights in Greater Sydney, stricter limits in coastal councils. • Western Australia – State-wide registration, development approval caps, and potential for stronger penalties. Political pressure is pushing short-term listings back into the long-term rental pool, as renters struggle and vacancy rates remain low. As an investor, the question is clear: Do you want your strategy tied to a market governments are actively clamping down on, or the one they’re desperate for more of — long-term rentals? 👇 Ready to future-proof your property strategy? Book your discovery call here: https://investdoor.com.au/meetings/aaron-tan/discovery-call 📺 Subscribe for more smart property insights: https://www.youtube.com/@InvestDoorProperty #AirbnbReality #newyear2026 #PropertyInvesting #SmartInvesting #investment #investmentproperty #investmenttips #InvestmentOpportunity #investmentopportunity #propertymanagement #propertyaustralia #financial #financialfreedom #financialliteracy #financialplanning #virałpost #viralchallenge #fypchallenge #fypシ #fypageシ #fypviral”

1 likes, 0 comments - investdoor_au am January 5, 2026: “Let’s talk about the part almost no one shows on social media: regulation. Across Australia, short-term rentals are being tightened — and the pace is accelerating. Key changes to know: • Victoria – From Jan 2025, a 7.5% short-stay levy on stays under 28 days via Airbnb/Vrbo (on top of GST and income tax). Owners corporations can vote (75% majority) to effectively ban non-PPR short-stay accommodation. • New South Wales – Mandatory state register, caps on unhosted nights in Greater Sydney, stricter limits in coastal councils. • Western Australia – State-wide registration, development approval caps, and potential for stronger penalties. Political pressure is pushing short-term listings back into the long-term rental pool, as renters struggle and vacancy rates remain low. As an investor, the question is clear: Do you want your strategy tied to a market governments are actively clamping down on, or the one they’re desperate for more of — long-term rentals? 👇 Ready to future-proof your property strategy? Book your discovery call here: https://investdoor.com.au/meetings/aaron-tan/discovery-call 📺 Subscribe for more smart property insights: https://www.youtube.com/@InvestDoorProperty #AirbnbReality #newyear2026 #PropertyInvesting #SmartInvesting #investment #investmentproperty #investmenttips #InvestmentOpportunity #investmentopportunity #propertymanagement #propertyaustralia #financial #financialfreedom #financialliteracy #financialplanning #virałpost #viralchallenge #fypchallenge #fypシ #fypageシ #fypviral”.

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Meanwhile, the hoped-for shift from short-term to long-term rentals hasn’t materialized. Research from the University of Canberra suggests levies alone rarely convince hosts to change course. Many short-stay owners use their properties personally or plan to move into them later, making long-term leases unattractive especially under rental laws they fear could limit future flexibility.

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State data backs up the concern, showing active rental bonds continued to decline in 2025, signaling fewer long-term rentals overall. Political debate is heating up, with the opposition labelling the levy a revenue grab and promising repeal, while the government maintains it’s part of a broader housing supply strategy.

For now, Victoria’s short-stay market isn’t shrinking, but it’s no longer growing either. And that reality may reshape expectations around what the levy can truly deliver.

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