Unity Jackson-Muir, Real estate reporter
Parts of Sydney are being overrun by Airbnbs while a chronic undersupply of new housing drives up rents across the city , new research has revealed.
An analysis of figures from rental database Inside Airbnb found multiple Sydney areas where the supply of short-term rentals was high relative to the amount of choice for longer-term tenants seeking a home.
There were more than 20 listings on Airbnb alone for every 100 traditional rentals in some suburbs, the study by Fox Removals found.
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A suburb-by-suburb analysis of whole-home Airbnb listings across Greater Sydney. Source: Inside Airbnb Sep ’26 / Rentals ABS 2021 Census. Analysis: Fox Removals
The analysis compared private rentals in the 2021 Census with 28,679 Airbnb whole property listings in 850 suburbs across Greater Perth, Melbourne, Sydney and Brisbane as of September 2026.
Avalon Beach topped Greater Sydney with 23 Airbnb listings for every 100 private rentals. In total there were 127 Airbnbs against 559 private.
In raw numbers, Manly had the most Airbnbs with 442 listings. However, a total 3585 rentals meant its ratio was 12 Airbnbs per 100 rentals.
Millers Point was second with 22 Airbnbs per 100 rentals; a total 110 Airbnbs versus 501 private.
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Greater Sydney has around two Airbnb listings for every 100 private rentals.
Greater Sydney was found to have an average of just under two whole property Airbnb listings for every 100 private rentals.
It comes as the latest data from realestate.com.au revealed Sydney median rents have reached a record $800 per week, with rents in some suburbs jumping $200 per week over the past quarter.
University of Sydney Professor Nicole Gurran modelled the impact of short-term rentals back in May and said converting whole properties to Airbnbs was putting the supply of private rental stock under pressure.
“The first and foremost concern is impacts on the rental market because any permanent rental unit that you take out of that rental market depletes the available vacancies,” Dr Gurran said.
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Dr Nicole Gurran’s joint study with the Australian Housing and Urban Research Institute confirmed high concentrations of STRA drove up rents and house prices. Picture: NewsWire / Jeremy Piper
Dr Gurran said tourists use public amenities differently to permanent residents which leads communities with high concentrations of Airbnbs to “tourist-ify”.
“You have issues with big groups staying, parties, rubbish, noise, and in holiday towns, dogs are often an issue as well,” Dr Gurran said.
In Greater Sydney, whole properties used as short-term rental accommodation (STRA) are currently restricted to hosting guests a maximum of 180 days a year and need to be voluntarily registered with the government.
An Airbnb submission to the City of Sydney said, “The challenge has not been the design of the rules – it has been the enforcement of the current framework which is robust by global standards.”
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Dr Gurran said caps on un-hosted properties where the owner isn’t living are the key solution for maintaining a balance on STRA and private rental stock.
Dr Gurran said councils don’t have the resources or the timely data needed to enforce these restrictions, which makes them “insufficient” for their purpose.
“The basic principle is you want to protect your housing stock for the people who need to live in an area and you do that by restricting the number of nights un-hosted properties can be made available on a short-term rental platform,” Dr Gurran said.
“That allows renters and owner occupiers to share their homes with tourists when they’re on holidays but it means that the whole dwelling can’t be converted over to a short-term.
“It works with the grain of the existing planning framework but the state government needs to actually use the framework that it’s established and it needs to allow councils to use the tools that it has.”
Airbnb data indicates 73 per cent of Australian hosts use their earnings to “help cover the rising cost of living” including by paying for mortgages, bills and groceries.
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Bernadette Janson, with Harriet, at her Airbnb, in Redfern. Picture: Justin Lloyd
Bernadette Janson is a retiree using a granny flat in her Redfern home as STRA to supplement her low superannuation balance.
“When I was doing our retirement planning, I, like many women, don’t have a decent super, and I really was looking for what I could do to make a dramatic difference,” Ms Janson said, adding that she aims to make $6000 a month or $72,000 per year.
In her first month, she only made $1000 after costs but is expecting to make $5000 this month.
“I talk to a lot of women who are really struggling financially so for them, some sort of Airbnb plan can really make a difference but I’m not in favour of the ‘empire building’ by some hosts,” Ms Janson said.
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Bernadette Janson’s Airbnb is a studio apartment.
Ms Janson agreed STRAs are fuelling the housing crisis and plans to “optimise for longer term bookings.”
She has also decided to convert another property she owns in Victoria into a long-term rental after hearing that the rural town had very low vacancy rates.
Airbnb’s submission to Sydney Council stated, “Chronic undersupply of housing, driven by planning constraints, heritage controls, construction costs and approval delays is the root cause of the current housing pressures.”
Dr Gurran said the housing crisis needs investment in social and affordable housing to resolve it but that maximising the current rental supply is critical in the short-term.
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Dr Gurran said the housing crisis can be resolved with investment in social and affordable housing.
“While we’re in the situation where we absolutely need more housing supply and more rental housing supply, we can’t afford to allow the existing rental stocks that we’ve got to be drained away into the tourism market,” Dr Gurran said.
Airbnb recommends enforcement of the 180-day cap, improving the STRA Register and building more homes.
Daniel Hassell is the founder of Fox Removals who commissioned the research and said income from STRAs is never guaranteed so long-term tenants can be a more predictable option.
“Anyone considering a switch needs to look beyond the headline nightly rate and factor in vacant periods, additional costs and the work involved,” Mr Hassell said.
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