The impact of short-term rental (STR) platforms, such as Airbnb, has become increasingly problematic in Australia’s residential rental market, particularly since the end of the COVID-19 lockdowns, as long-term rental dwelling availability has shrunk and prices increased.

This policy challenge has been growing for many years. Airbnb has been expanding rapidly since it arrived in Australia in 2012: between 2016 and 2019, average revenue growth was 2.43% per month. Since then, online STR platforms have fundamentally changed the geography of tourism, shifting a large swathe of holidaymakers from traditional short-term accommodation such as hotels, motels and caravan parks, into domestic dwellings scattered throughout Australia's residential neighbourhoods.

Using the data on Airbnb listings gathered by Inside Airbnb, this paper examines the Airbnb market in six different regions of Australia, to explore what effects are at play and, importantly, to determine what regulatory interventions would be appropriate in response to this significant shift in dwelling stock usage.