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The Canberra Times
The Canberra Times
Georgina Sebar

Airbnb listings have surged in Canberra, but who really benefits?

A year on from the introduction of a 5 per cent levy on short-term rentals, professional Airbnb hosts have tightened their grip on Canberra's booming short-stay market.

New data from analytics firm AirDNA shows the number of active listings in the territory climbed from 1106 to 2197 between 2021 and 2026.

The growth was concentrated in high-density corridors, especially in Braddon and the city, which together accounted for 37 per cent of all short-stay accommodation in Canberra.

In Phillip, where listings surged by 44 per cent, residents have reported noise, parking disputes and aggressive guest behaviour. More than 60 per cent of short-stay properties there are now managed by professional operators.

Across the territory, the average daily rate jumped from about $127 to $218 over the same five-year period, and territory-wide revenue rose by 2.5 times.

The boom has come despite last year's levy, which charges a 5 per cent fee on the total cost of any bookings made through an online service.

Booking platforms, rather than individual hosts, are charged the levy, and bookings made directly between the renter and home owner, as well as through hotels, motels and student accommodation are exempt.

The levy was intended to encourage landlords towards long-term rental agreements as the housing crisis worsened, and to bring the taxes paid by the online giants in line with those paid by traditional short-term accommodation.

Canberra Convention Bureau chief executive Michael Matthews said the city already had ample hotel infrastructure.

"I would argue that Airbnb is not vital in a city environment, but could be good for regional tourism," Mr Matthews said.

Canberra Convention Bureau chief executive Michael Matthews said Canberra should be wary about an increased number of short-term rentals. Picture by Karleen Minney

"If you use the word vital, then in a regional setting it is."

Nearly 500 new rooms are expected to be added to the capital by the end of next year.

However, Canberra Region Tourism Leaders Forum chair David Marshall said short-stay rentals acted as a release valve during peak periods such as sitting weeks, budget week and school holidays.

"They are very important components now of tourism, because it provides an alternative to accommodation, particularly during holiday periods when accommodation's at a premium," he said.

Both Mr Marshall and Mr Matthews were concerned that entire homes were being converted into de facto hotels, decreasing the number of long-term housing options.

"A lot of Airbnbs are taking properties out of the rental market," Mr Marshall said.

"We are hearing that Canberra can be an expensive rental market, and if there's less stock then how do we house the workers in our industry?"

A spokesperson for the ACT government said short-term rental accommodation played an important role in meeting visitor demand during peak and surge times, as well as offering flexibility to larger groups.

Other avenues of increasing housing supply continue to be a focus for the government, the spokesperson said.

ACT Treasurer Chris Steel announced the levy on short term accommodation in March 2025. Picture by Keegan Carroll

"Initiatives such as the Affordable Housing Project Fund and Affordable Community Housing Land Tax Exemption Scheme encourage longer-term affordable housing opportunities for low-to-moderate income households," the spokesperson said.

However, the levy provided little oversight; the spokesperson said the government only receives aggregate data from platforms, leaving it with "limited visibility" of market trends and no information on individual bookings or properties.

"The government continues to consider how short-term accommodation fits within broader housing, tourism, and land use policy settings, including the balance between visitor accommodation needs, housing supply, and residential amenity in high-density areas," the spokesperson said.

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