Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
Thinking about running an Airbnb in Sydney in 2026? You're not alone, and the numbers might surprise you.
Sydney's short-term rental market is one of Australia's largest, but it comes with unique rules, seasonal swings, and stiff competition that every potential host needs to understand.
This article breaks down everything from legal requirements to realistic profit expectations, using the freshest data available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sydney.
Insights
- The average Sydney Airbnb listing earns around A$1,630 per month in 2026, but that figure is dragged down by thousands of part-time hosts who only rent a few months each year.
- Non-hosted Airbnb properties in Greater Sydney face a strict 180-day annual cap, but bookings of 21 nights or longer are exempt, making mid-stay strategies surprisingly attractive.
- Nearly half of all Sydney Airbnb listings are one-bedroom apartments, meaning a well-designed three-bedroom property faces significantly less competition.
- Strata buildings in Sydney CBD, Pyrmont, Bondi Junction, and Zetland can effectively ban non-resident hosts through by-laws, so apartment buyers should check strata rules before purchasing.
- Top-performing Sydney hosts achieve occupancy rates of 70% to 80%, roughly 15 percentage points higher than the market average of 62%.
- Sydney's New Year's Eve fireworks period creates the single biggest demand spike of the year, with harbour-view properties commanding extreme premiums.
- A serious full-time Sydney Airbnb operator can realistically gross A$3,200 to A$4,800 monthly, but operating expenses typically consume 40% to 60% of that revenue.
- The Northern Beaches cluster including Manly and Palm Beach shows heavy listing concentration, yet still commands premium rates due to consistent beach tourism demand.
- Sydney has between 25,000 and 30,000 active short-term rental listings, making it one of the most competitive Airbnb markets in the Asia-Pacific region.
Can I legally run an Airbnb in Sydney in 2026?
Is short-term renting allowed in Sydney in 2026?
As of early 2026, short-term renting through platforms like Airbnb is legal in Sydney under the NSW statewide STRA (Short-Term Rental Accommodation) framework, provided you follow compliance requirements.
The main legal framework is the NSW STRA policy, which sets out registration requirements, fire safety standards, and a mandatory code of conduct for all hosts.
The single most important restriction is that non-hosted properties (where you don't live on-site during guest stays) are limited to 180 rental nights per year in Greater Sydney.
Hosts must also register on the NSW Planning Portal's STRA Register, ensure fire safety compliance, and follow the mandatory code of conduct administered by NSW Fair Trading.
For a more general view, you can read our article detailing what exactly foreigners can own and buy in Australia.
If you are an American, you might want to read our blog article detailing the property rights of US citizens in Australia.
Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in Sydney as of 2026?
As of early 2026, there is no statewide minimum-stay requirement for Sydney Airbnbs, but non-hosted properties face a maximum cap of 180 rental nights per year.
These rules differ based on hosting arrangement: hosted STRA (you live on-site during stays) can operate year-round, while non-hosted properties must observe the annual limit.
A useful workaround: bookings of 21 consecutive nights or longer are exempt from non-hosted day limits, which is why many Sydney hosts target corporate relocations or extended family visits.
Hosts track rental nights through the mandatory STRA Register on the NSW Planning Portal, which requires annual renewal and serves as the official compliance record.
Do I have to live there, or can I Airbnb a secondary home in Sydney right now?
You do not have to live in the property to run an Airbnb in Sydney, but the rules change significantly depending on whether you're present during guest stays.
Owners of secondary homes can legally operate short-term rentals under the non-hosted STRA category, though they must comply with the 180-night annual cap in Greater Sydney.
Non-hosted properties must meet the same registration and fire safety requirements as hosted ones, though strata by-laws can impose extra restrictions on apartment buildings.
The main difference: hosted STRA can operate year-round, while non-hosted investment properties are capped at 180 nights unless you target stays of 21 days or longer.
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Can I run multiple Airbnbs under one name in Sydney right now?
Yes, you can legally operate multiple Airbnb listings under one name in Sydney, as the NSW compliance system is built around individual property registration rather than limiting hosts to a single listing.
There is no explicit maximum number of properties one person can list in Sydney, and AirDNA data confirms that large property managers operate hundreds of listings across the city.
Each property must independently meet all compliance requirements: separate STRA Register entries, individual fire safety compliance, and code of conduct adherence for every listing.
Do I need a short-term rental license or a business registration to host in Sydney as of 2026?
As of early 2026, Sydney does not require a traditional "tourism license" for Airbnb hosting, but you must register on the NSW STRA Register, comply with fire safety standards, and follow the mandatory code of conduct.
The registration process through the NSW Planning Portal typically takes less than an hour: create an account, enter property details, and confirm fire safety compliance.
You'll need to provide property address details, confirm dwelling type, and acknowledge your fire safety and code of conduct obligations, though no formal qualifications or inspections are required.
STRA registration is free, though you should budget for fire safety equipment if needed, and registration must be renewed annually.
Are there neighborhood bans or restricted zones for Airbnb in Sydney as of 2026?
As of early 2026, Sydney does not have suburb-by-suburb bans on Airbnb, but restrictions can effectively exist through strata by-laws in apartment buildings and the citywide 180-day non-hosted cap.
The areas with the most practical restrictions are strata-heavy neighborhoods like Sydney CBD, Pyrmont, Zetland, Chatswood, and Bondi Junction, where owners corporations can adopt by-laws prohibiting short-term letting for non-residents.
These strata restrictions exist because NSW law explicitly allows apartment buildings to ban STRA for non-resident owners, meaning your ability to Airbnb depends on your specific building's rules.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How much can an Airbnb earn in Sydney in 2026?
What's the average and median nightly price on Airbnb in Sydney in 2026?
As of early 2026, the average nightly price for a Sydney Airbnb is approximately A$223 (US$145 or €135), while the median sits closer to A$195 (US$127 or €118) based on bedroom mix.
The typical nightly price range covering 80% of Sydney listings falls between A$120 and A$380 (US$78 to US$247 or €72 to €230).
The single biggest factor affecting nightly pricing in Sydney is location: beach access in Bondi or Manly, harbour views in the CBD, or value positioning in outer suburbs like Parramatta.
By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in Sydney.
How much do nightly prices vary by neighborhood in Sydney in 2026?
As of early 2026, nightly prices vary by more than double between neighborhoods: premium beach areas like Bondi and Manly average A$300 to A$420 (US$195 to US$273), while outer suburbs like Liverpool and Penrith range from A$160 to A$230 (US$104 to US$150).
The three neighborhoods with highest average nightly prices are Palm Beach (often exceeding A$400), followed by Bondi Beach and Manly, both consistently commanding rates above A$300 for well-presented entire homes.
The lowest-priced neighborhoods are Penrith, Liverpool, and Western Sydney around Parramatta, typically A$160 to A$200, though these areas still attract steady bookings from family visitors, sports fans, and value-focused travelers.
What's the typical occupancy rate in Sydney in 2026?
As of early 2026, the typical occupancy rate for Sydney Airbnb listings is approximately 62%, translating to roughly 19 booked nights per month for actively available properties.
The realistic occupancy range covering most listings falls between 50% and 75%, depending on pricing strategy, listing quality, and host responsiveness.
Sydney's 62% average compares favorably to regional Australian markets and aligns with other major capital cities, reflecting strong year-round tourism and business travel demand.
The biggest factor driving above-average occupancy is professional pricing management combined with fast response times.
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What's the average monthly revenue per listing in Sydney in 2026?
As of early 2026, the average monthly revenue per Sydney Airbnb listing is approximately A$1,630 (US$1,060 or €985), though this is influenced by many part-time hosts who only rent a few months yearly.
The realistic monthly revenue range covering 80% of listings spans A$800 to A$3,500 (US$520 to US$2,275), reflecting differences in availability, location, and property type.
Top-performing listings with near-full availability can achieve A$3,200 to A$4,800 monthly (US$2,080 to US$3,120). The math: A$223 nightly rate at 62% occupancy over 25 available nights yields around A$3,450 gross.
Finally, note that we give here all the information you need to buy and rent out a property in Sydney.
What's the typical low-season vs high-season monthly revenue in Sydney in 2026?
As of early 2026, low-season monthly revenue for a full-time Sydney Airbnb typically runs A$2,200 to A$3,400 (US$1,430 to US$2,210), while high-season months can reach A$4,500 to A$6,700 (US$2,925 to US$4,355).
Sydney's low season falls in winter (June through August), while high season peaks December through February, with additional spikes around New Year's Eve, Vivid Sydney (May/June), and Mardi Gras (late February/March).
What's a realistic Airbnb monthly expense range in Sydney in 2026?
As of early 2026, realistic monthly operating expenses for a Sydney Airbnb range from A$1,000 to A$2,500 (US$650 to US$1,625) self-managed, rising to A$1,600 to A$3,800 (US$1,040 to US$2,470) with professional management.
The largest expense category is cleaning and laundry, typically A$350 to A$1,200 monthly depending on bedroom count and turnover frequency.
Sydney hosts should expect to spend 40% to 60% of gross revenue on operating expenses.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Sydney.
What's realistic monthly net profit and profit per available night for Airbnb in Sydney in 2026?
As of early 2026, realistic monthly net profit for a Sydney Airbnb ranges from break-even for average part-time listings to A$900 to A$2,600 (US$585 to US$1,690) for serious full-time operators, translating to A$36 to A$104 profit per available night.
The realistic net profit range spans from a small A$200 loss for poorly optimized properties to A$2,600 profits for well-located, professionally managed full-time rentals.
Sydney hosts typically achieve net profit margins of 20% to 40% of gross revenue after operating expenses, excluding mortgage payments.
The break-even occupancy rate sits around 40% to 50%, meaning roughly 12 to 15 booked nights monthly to cover operating costs.
In our property pack covering the real estate market in Sydney, we explain the best strategies to improve your cashflows.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How competitive is Airbnb in Sydney as of 2026?
How many active Airbnb listings are in Sydney as of 2026?
As of early 2026, Sydney has approximately 25,000 to 30,000 active short-term rental listings, with AirDNA reporting around 28,000 total available listings including Airbnb and Vrbo.
This number has grown steadily since post-pandemic recovery, though new listing growth has slowed compared to 2022-2023, suggesting market maturation rather than explosive expansion.
Which neighborhoods are most saturated in Sydney as of 2026?
As of early 2026, the most saturated Sydney neighborhoods are Bondi Beach, Bondi Junction, Manly, Coogee, Sydney CBD, The Rocks, Darling Harbour, Surry Hills, and Darlinghurst.
These neighborhoods became saturated because they combine Sydney's strongest tourism drawcards (beaches, harbour views, nightlife, CBD access) with high-density apartment buildings that make listing easy.
Relatively undersaturated neighborhoods offering better opportunities include Parramatta (growing business hub), Inner West areas around Marrickville and Dulwich Hill, and suburbs near Olympic Park like Homebush that benefit from stadium events.
What local events spike demand in Sydney in 2026?
As of early 2026, main events spiking Sydney Airbnb demand include New Year's Eve (the biggest compression period), Sydney Festival (January), Mardi Gras (late February/March), Vivid Sydney (May/June), plus major concerts and sporting events at Accor Stadium, SCG, and Qudos Bank Arena.
During peak events, hosts typically see booking rates increase 20% to 40% and nightly prices rise 30% to 80%, with NYE harbour properties sometimes commanding three to four times usual rates.
Savvy hosts should adjust pricing four to eight weeks before major events, setting strategic minimum-stay requirements and rates reflecting genuine demand.
What occupancy differences exist between top and average hosts in Sydney in 2026?
As of early 2026, top-performing Sydney Airbnb hosts achieve occupancy rates of 70% to 80%, meaning 21 to 24 booked nights monthly when available.
Average hosts typically see 55% to 65% occupancy, so top performers book 10 to 15 more nights monthly, translating to A$1,500 to A$3,000 additional revenue.
New hosts typically take 6 to 12 months to build the review history and pricing expertise for top-performer levels, though prime locations with professional photography can accelerate this.
We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in Sydney.
What amenities do nearly all competitors offer in Sydney right now?
As of early 2026, baseline amenities nearly all competitive Sydney listings offer include wireless internet (95%), kitchen (93%), washer (91%), and TV (75%), making these non-negotiable.
Sydney's climate and traveler mix mean strong air conditioning is practically essential, self check-in is expected in the apartment-heavy inner city, and work-friendly setups attract significant business travel.
To stand out, focus on dedicated parking (valuable in inner-city areas), outdoor space or balconies, and quality bedding that photographs well.
Which price points are most crowded, and where's the "white space" for new hosts in Sydney right now?
The nightly price range with highest listing concentration is A$150 to A$280 (US$98 to US$182), corresponding to mid-market one and two-bedroom entire-place listings making up nearly 80% of supply.
Most crowded is the A$180 to A$250 range for inner-city apartments, while white space exists at A$350 to A$500 for three-bedroom family properties and in the extended-stay segment targeting 21-plus night bookings.
Property characteristics for underserved segments include three-plus bedrooms with good transit and parking, or apartments configured for month-long stays leveraging the 21-day exemption.
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What property works best for Airbnb demand in Sydney right now?
What bedroom count gets the most bookings in Sydney as of 2026?
As of early 2026, one-bedroom and two-bedroom properties get the most total bookings in Sydney, driven by couples, solo business travelers, and friends visiting for weekends.
Sydney's bedroom distribution shows one-bedrooms at 48%, two-bedrooms at 30%, three-bedrooms at 12%, with studios and four-plus bedrooms making up the remaining 10%.
This mix performs well because Sydney's inner areas are dominated by apartments built for singles and couples, while business and weekend visitor segments prefer compact, well-located properties.
What property type performs best in Sydney in 2026?
As of early 2026, entire-home apartments perform best overall in Sydney, representing approximately 81% of all listings and capturing the vast majority of guest demand.
Entire homes achieve the strongest occupancy, while private rooms (roughly 19% of listings) typically see lower occupancy and significantly lower revenue per booking.
Entire-place apartments outperform because Sydney's traveler mix favors privacy, the dense inner-city offers apartment inventory close to attractions, and business travelers particularly prefer complete independence.
What location traits boost bookings in Sydney right now?
Location traits that boost Sydney Airbnb bookings include CBD proximity or major attraction access, walkability to beaches like Bondi, Manly, or Coogee, convenient public transport, and straightforward self check-in.
Event adjacency is particularly valuable, with properties offering easy access to Accor Stadium/Olympic Park, SCG, Qudos Bank Arena, or harbour vantage points consistently commanding premium rates.
Key friction reducers are airport accessibility, parking availability (especially in beach suburbs), and clear entry instructions for late-night arrivals.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sydney, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used and explained how we used them.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| NSW Department of Planning STRA Policy | The NSW Government's official hub for short-term rental planning rules and compliance requirements. | We used it as the primary source for legal requirements including the 180-day non-hosted cap and registration obligations. |
| NSW Planning Portal | The official platform NSW uses to run the STRA Register and compliance workflows. | We used it to explain registration processes and what hosts must actually do to comply. |
| NSW Fair Trading | The regulator administering the mandatory code of conduct for platforms, hosts, and guests. | We used it to explain conduct rules and complaint mechanisms for Sydney hosts. |
| NSW Legislation Database | The official legislation database containing court-enforceable NSW laws. | We used it to confirm fire safety standards are regulatory requirements, not optional guidance. |
| ABS Census QuickStats Greater Sydney | Australia's national statistics agency providing the cleanest view of Sydney's housing stock. | We used it to determine which property types are common and validate bedroom expectations. |
| AirDNA MarketMinder Sydney | One of the most widely used short-term rental analytics providers with consistent methodology. | We used it as the primary backbone for occupancy (62%), ADR (A$223), revenue, and listing counts (28,163). |
| Inside Airbnb Sydney Data | A well-known independent research dataset used globally to study STR supply and distribution. | We used it to cross-check supply levels and identify neighborhood clustering patterns. |
| Airbnb Resource Center Host Fees | Airbnb's own documentation of host fee structures and percentages. | We used it to model realistic platform fee deductions (typically 3%) from gross revenue. |
| Australian Taxation Office | Australia's tax authority and definitive source on rental income reporting. | We used it to explain that STR income is taxable and frame business registration considerations. |
| Reserve Bank of Australia | Australia's central bank and definitive source for policy rates influencing mortgage costs. | We used it to contextualize the financing environment affecting profitability in early 2026. |
| NSW DCJ Rent and Sales Report | The authoritative rental movement dataset for NSW. | We used it as the benchmark for long-term rental values when calculating opportunity cost. |
| NSW Planning Portal Housing Dataset | The state's explainer linking rent and sales data to official government definitions. | We used it to confirm strata versus non-strata definitions when comparing property types. |
| CBRE Major Hotel Markets Performance | A major global real estate consultancy providing hotel performance as a proxy for travel demand. | We used it to explain demand spikes and how hotel constraints affect STR pricing power. |
| Destination NSW Tourism Reports | The state's official tourism body with industry research attribution. | We used it to support demand narratives and keep Sydney-specific tourism dynamics grounded. |
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