Victoria's Airbnb boom is over, but don't expect a rental windfall. The state government's new Airbnb levy aimed to boost social housing revenue, but data shows short-stay listing growth has stagnated in 2025, threatening the financial goals of Homes Victoria. Analysts attribute the slowdown to cooling demand, not higher tax levies. Despite the levy's introduction, the number of short-stay properties listed daily in Victoria remained largely unchanged in 2025 compared to the previous year. This indicates a market where supply exceeds demand, leading to falling occupancy rates and deterring new listings. The 7.5% levy, designed to incentivize property owners to shift short-term listings to long-term rentals, has faced challenges. Revenue projections, dependent on a strong short-stay market, have fallen short, and the tax has done little to shift properties back into the long-term rental market. A University of Canberra study found that most short-stay owners use their properties for personal holidays or plan to move into them, making long-term leasing less likely. The opposition criticizes the levy as a desperate attempt to fix Homes Victoria's failing finances, while the government argues it's a supply-boosting measure to address the housing crisis.
