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Inside the Report:
Understanding the Realities Behind STR Ownership
Research by University of Canberra, Commissioned by Booking.com
A closer look at the motivations, challenges, and lived experiences shaping Australia’s short-term rental landscape.
This report brings together in-depth interviews and survey findings to explore what really drives STR decision-making in Australia - from personal attachment and financial needs to regulatory pressures and community sentiment. Below, you'll find key highlights from the research, direct quotes from STR owners, and visual summaries of the findings.
Part 1: STRs in the Bigger Picture
Short-term rentals (STRs) have become an essential part of Australia’s accommodation landscape.
They work alongside hotels, motels, and regional stays to meet the diverse and growing needs of travellers, workers, and communities.
At their core, STRs offer flexibility where traditional infrastructure can’t keep up - especially during peak periods, major events, or in regions with limited hotel capacity.
All it takes is two events at the same time, and every bed space in the city is full.
STR Property Manager
in Canberra
We have so many million visitors per year… There has to be a certain level of short stay rentals down here.
Council officer in Victoria
I've had so many people stay that are visiting their family that live in the surrounding streets, as well as neighbours renovating homes that just need somewhere close.
STR owner
Carers and patients needing short-term stays for medical treatment
Families in-between homes, renovating, or relocating
Evacuees displaced
by natural disasters
Seasonal or temporary workers in essential roles
But STRs serve more than just tourists.
Over
40%
of bookings are for essential or community-driven reasons.
STRs also support local livelihoods.
Every STR management business interviewed sustains
between
30 to 100
local jobs
including:
-
Property managers
-
Cleaners and maintenance staff
-
Hosts and coordinators
Many of these workers are -
Women with Children
Older Australians
Migrants
​
Neurodiverse Individuals
- people who may struggle to find stable work in traditional employment settings.
For them, the STR economy creates
flexible income pathways that fit real lives.
Part 2: Understanding the Housing Pressure in Context
While STRs play a flexible, vital role in the accommodation ecosystem, their growing visibility has also drawn scrutiny - particularly in the national conversation around housing affordability.
Yes, housing affordability is tightening -
but what’s really driving it?
“If there was no option for STR… I do not think that the price would be impacted… the costs for owners is still too high to pay their mortgages.”
STR Property Manager in Victoria
Stakeholders across the board - from hosts to councils - point to a
range of macro-level factors contributing to housing stress:
Population growth
​
Limited
housing supply
​
Interest
rate pressures
​
Planning and zoning constraints
Pandemic-driven migration trends
​
In this broader context, STRs may be a visible factor, but they are not the root cause.
Part 3: Behind Every STR is a Story
The report aims to examine the factors and motivations that drive a homeowner to list their property on the short-term market.
​
To shape meaningful and effective policy, we need to move past assumptions and understand the people behind these properties - their needs, priorities, and personal connections.
Because for many, STRs aren’t just investments - they’re personal. Too often, public debate overlooks the emotional, practical, and deeply human reasons why owners choose short-term rental over long-term tenancy. And the truth is, most aren’t in it for profit alone.
41% say their STR is a holiday home
41% plan to live in the property in future - often for retirement or relocation
66% value being able to use the home with family and friends
Only 13% said aid they would switch to LTR if STR became unprofitable
“Our holiday house is treasured by my brother and our families. It was built by my father as a labor of love during the 1950s and 60s. It would break our hearts if we had to sell it because the STR became unworkable.”
STR Owner
Images are for illustrative purposes only and do not depict actual short-term rental owners or properties.
Beyond personal attachment, owners cite concerns about long-term renting that influence their decisions:
Past negative experiences with tenants
Worry over poor property care and maintenance
Stricter tenancy regulations and reduced control
Inability to access the home when needed
“They use the property themselves, and they bring their large families, and they spend money in town… they generally have really high attachment and association with the local community… they want to be regarded here, they want to contribute.”
STR business representative
“This [regulation] would have a major negative impact on our ownership and use of a property that we have owned for almost 50 years and that is of huge importance to our whole family.”
STR owner
Understanding these lived realities is essential. Assumptions that all STR owners are speculative investors miss the mark - and risk creating policies that unintentionally penalise everyday Australians simply trying to hold on to meaningful family spaces.
Part 4: The Everyday Faces of STR Ownership
Understanding the personal motivations behind STR ownership helps us see why many hosts feel overlooked in policy debates. But who are these owners, really - and what happens if short-term renting becomes unviable?
The data shows that most aren’t large-scale investors, but everyday individuals relying on STRs to make ends meet.
In fact,
75%
own just one STR
of respondents
and the majority are simply trying to cover costs or supplement their income.
For many, STRs offer a crucial buffer - a way to stay financially afloat, secure retirement plans, or build flexibility into caregiving responsibilities. When asked what they’d do if STRs became financially unviable:
Only 13% would convert it to a long-term rental
40% would keep it for personal use
32% said they would sell the property
In other words, tighter STR restrictions don’t necessarily return housing stock to the long-term rental pool. For many, STRs are already the compromise.
“We intend to use our investments to enable us to become self-funded retirees… if unable to hold the property long enough… we need to retire with a government-funded pension only.”
STR owner
“I work my STRs as my job and it’s my only income… I’d have to find alternative employment and put my kids into after school care… my kids would miss out on after school sport, homework help and a mum who’s home… because I’d have to work for someone else.”
STR Owner
“I would surely need to sell it and crystallise a major loss… potentially bankrupting me and my family… or at the very least sell my family home and buy something cheaper and further away from my kids’ school.”
STR owner
Rather than seeing STRs as the problem, we need to understand who these owners are - and the real-life trade-offs they’re navigating.
Part 5: One Sector, Many Stories
Just as no two hosts are the same, no two communities experience STRs the same way. From inner cities to coastal towns, the role of STRs shifts depending on local pressures, economic needs, and tourism patterns - underscoring the need for policies that reflect this diversity.
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In some high-demand cities, oversupply post-COVID has led to a self-correcting market. STR operators are improving offerings, lowering prices, and narrowing booking windows.
Meanwhile, in regional areas or tourism hubs, STRs remain vital to local economies. And where long-term rental yields are too low or properties aren’t selling, owners are turning to STRs to manage financial pressure - not to extract profits, but simply to stay afloat.
“I’ve got an autistic daughter and a husband who has Parkinson’s, and this is the way I have been able to make ends meet, because I can work the hours that suit me.”
STR property manager
“Our service provides jobs and opportunities to the region, not just for the people we directly employ, but also for service providers like cleaners, gardeners, photographers, and others.”
STR Business, South Australia
“It’s a livelihood for so many… the majority of hosts would be women, to do it around their families… and that’s the great thing about the industry.”
STR business representative
These stories show the STR market as responsive, adaptable - and, most importantly, made up of people. The path forward must reflect that nuance.
Part 6: Regulation Matters - But It Must Be Done Right
As conversations around STRs heat up, it’s clear that better policy is needed - but reactive rules and policies that did not take the time to understand local nuances may do more harm than good.
Across our interviews, we heard that most hosts welcome clear and fair regulation. The right frameworks can help set standards, protect guests, and professionalise the industry.
But poorly designed rules - those that aren’t based on evidence, or that ignore local realities - risk missing the mark entirely.
For regional tourism towns, STRs are a vital lifeline. Over-regulation could hollow out economies, cost jobs, and force homeowners - including retirees - to sell homes they depend on for income.
“We bought this to avoid going on the pension. If STRs are capped, we’ll be forced to sell or rely on government support.”
STR owner
“STRs play a huge role in keeping Noosa attractive… they offer what people want — flexibility, a home-away-from-home feel… that draws people in… helping keep businesses afloat and workers employed.”
STR Property Manager
in Queensland
“I am all in favour of rules and regulations… I encourage rules and regulations to make it a fair playing ground for everyone.”
STR property management business in Brisbane
But enforcement remains a real challenge:
Several council officers have cited insufficient resources to enforce current STR rules.
Council officers have stressed that state-led policies don’t reflect local needs.
“Being a capital city, there’s always going to be a balance to strike between supporting tourism and ensuring housing availability… The complexity comes from understanding how STRs are being used.”
Council officer, Victoria
Importantly, the current discourse surrounding STRs are creating some confusions and challenges in communities. In some hotspots, STR owners report rising neighbour complaints, online harassment, and growing fear of being shut out - even when operating responsibly.
“Regulatory, media and political attention is causing division and tensions in communities… STR permit applicants have faced harassment… and many STR Businesses interviewed have asked to remain anonymous.”
Report Findings
What we need now isn’t overcorrection, but policy grounded in real-world use, community needs, and fair access - informed by practical enforcement realities and local input, not just politics or pressure.
Part 7: Smarter Policy Begins with Better Understanding
Effective STR policy solutions are grounded in a nuanced understanding of how the sector works - and who it serves:
Data
Dialogue
Local Input
Balanced Outcomes
The pathway to better outcomes is clear: start with evidence, build dialogue with communities, consider local context when designing policies, and ensure balanced outcomes through enforceable regulations.
That’s the path to better policy. Not assumptions, but listening to lived experience and using it to guide more balanced, workable outcomes for all.
This report, and this microsite, were created to support exactly that. Together, they offer a snapshot of a dynamic accommodation landscape - shaped by personal motivations, community needs, and economic realities.
Want to dive deeper?
Express your interest to download the full report here, visit our Resources page for additional research and context — or head to Get in Touch if you have questions, ideas, or would like to contribute to the conversation.
References:
1 Brisbane City. (2024, June). Short-Stay Accommodation Taskforce Report. Retrieved from Short-Stay Accommodation Taskforce: https://www.brisbane.qld.gov.au/sites/default/files/documents/2024- 06/20240613_Short-Stay%20Accommodation%20Taskforce%20Report%20-%20accessibility%20-%20updated.pdf
2 ABS. (2024b). Total Value of Dwellings. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/total-value-dwellings/dec-quarter-2023.
​
3 ABS. (2024a). Australian National Accounts: National Income, Expenditure and Product. ABS.https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release.