Thirty percent occupancy is thin anywhere, but the trajectory here is what's doing the talking — Melbourne's short-term market has clawed back over eleven points in two years, which tells you this is a city still finding its feet post-lockdown rather than one that's structurally broken. With 15,000-plus active listings all chasing that same recovering demand, you're in a genuinely crowded field, and at £157 a night the revenue per booking isn't doing enough heavy lifting to compensate for empty nights. Regulation risk is real and tightening, with the Victorian government eyeing short-stay levies. Unless you've got a property that can genuinely differentiate, the numbers don't yet justify the bet.
Year-over-year performance
Compared to the closest snapshot from approximately 12 months ago, the Melbourne short-term rental market has shifted in measurable ways. Occupancy among active listings is down 1.7 points.
When Melbourne Airbnbs perform best
Occupancy in Melbourne peaks in September at 65% and bottoms out in November at 48%, a 17-point swing across the year. Price the peak, defend the shoulder months with minimum-stay rules, and budget the trough as empty.
| Month | Occupancy | Median nightly rate |
|---|---|---|
| January | 52% | — |
| February | 50% | — |
| March | 52% | — |
| April | 55% | — |
| May | 53% | — |
| June | 58% | — |
| July | 62% | — |
| August | 62% | — |
| September | 65% | — |
| October | 54% | — |
| November | 48% | — |
| December | 49% | — |
Looking ahead, 48% of the next 30 nights are already booked across the market, 47% of the next 60 and 49% of the next 90 (as of 2026-10-18).
How Melbourne compares to Australia
Benchmarked against 11 other Australia markets we track, Melbourne's metrics tell a clear story.
What kind of Airbnbs are in Melbourne?
Of the 15,595 active operating listings, 82.3% are entire homes (vs private rooms), and 47% are operated by Airbnb Superhosts.
Top neighborhoods in Melbourne
The 30 neighborhoods we track range from established tourist hotspots to emerging investment zones. Here are the 10 strongest by median annual revenue per listing, led by Yarra Ranges at £16,601 a year.
| Neighborhood | Listings | Occupancy | Annual revenue | RevPAR | YoY |
|---|---|---|---|---|---|
| Yarra Ranges | 858 | 24.7% | £16,601 | £45 | +1.7 pts YoY |
| Nillumbik | 74 | 28.8% | £14,225 | £39 | -2.4 pts YoY |
| Yarra | 1,011 | 21.4% | £12,430 | £34 | -1.6 pts YoY |
| Melbourne | 5,704 | 21.4% | £11,974 | £33 | -1.6 pts YoY |
| Manningham | 128 | 14.8% | £9,203 | £25 | +4.9 pts YoY |
| Port Phillip | 1,477 | 14.8% | £8,454 | £23 | -1.6 pts YoY |
| Stonnington | 721 | 16.4% | £8,381 | £23 | -2.8 pts YoY |
| Kingston | 215 | 15.3% | £7,209 | £20 | +0 pts YoY |
| Frankston | 173 | 14.8% | £7,111 | £19 | +0.8 pts YoY |
| Hobsons Bay | 208 | 14.8% | £6,844 | £19 | -1.6 pts YoY |
Frequently asked questions
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