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Australia’s housing crisis continues to put residents under pressure, with climbing interest rates, house prices, and rental costs that are inflating quicker than wages, Australians are eager to earn an extra income renting out whole properties, annexes and spare bedrooms to tourists who have become a prominent way to boost income and tackle rising costs.
So, with this in mind, the mortgage experts at MortgageBroker.com.au delved into holiday home earnings data to identify which Australian locations are the most lucrative for holiday homeowners.
Top states earning the most from holiday homes
| Rank | State | Average price/ night (A$) | Average yearly income through Airbnb |
| 1 | South Australia | $314 | $25,864 |
| 2 | New South Wales | $304 | $17,483 |
| 3 | Queensland | $292 | $13,725 |
| 4 | Tasmania | $254 | $12,706 |
| 5 | Victoria | $169 | $7,611 |
MortgageBroker.com.au can reveal that South Australia is the best state for holiday homeowners to earn money. With an average earning of $314 a night and a $25,864 yearly income. Barossa Valley with 337 Airbnb listings is known as one of Australia’s best wine regions, producing 20% of all Australian wines, and attracts visitors from around the world – unsurprisingly, Airbnbs are lucrative here, especially with large groups of tourists. Light Pass in Barossa Valley boasts the highest yearly average income in Australia with $40,410.
New South Wales is the second-highest-earning state. New South Welshmen are charging an average of $304 a night, raking in $17,483 annually. The state is home to Sydney, one of the most famous Australian destinations with a plethora of attractions including the iconic Sydney Opera House. Sydney boasts an enormous number of listings at 15,548 with an average of 72 nights booked per year.
Queensland comes in at third place with $13,725 earnings annually and offers one of the cheapest nightly rental rates at $292 despite being a bustling hub for visitors, it is especially popular for nature lovers, with the state being home to five of Australia’s eleven World Natural Heritage areas.
Tasmania comes in fourth with $12,706 and low rental rates ($254). In last place is Victoria with $7,611, the state is home to the ever-popular tourist hotspot, Melbourne. Fierce accommodation competition could be impacting Victoria’s Airbnb potential, averaging the lowest night rates of the ranking states at only $169.
Australia’s highest-earning locations
| State | City/Local Government Area/Suburb | Area | Average price/ night (A$) | Average yearly income through Airbnb |
| South Australia | Light Pass | Barossa Valley | $375 | $40,410 |
| Tasmania | Glamorgan/Spring Bay | Tasmania | $263 | $26,597 |
| Victoria | Yarra Ranges | Melbourne | $313 | $25,839 |
| Queensland | Noosa | Sunshine Coast | $512 | $23,339 |
| New South Wales | Bryon Shire | Northern Rivers | $533 | $22,111 |
Barossa Valley in South Australia dominates the top spot for highest earnings from Airbnb in the entire country, with Light Pass charging on the lower side at $375 per night. Still, each property averages a whopping 106 nights booked per year, making the average yearly income $40,410. This is unsurprising as Barossa Valley Tourist Park is just a short distance from the suburb.
Tasmania is home to 6,196 Airbnbs but the Glamorgan/Spring Bay area takes the top spot for highest earnings from Airbnb, charging $263 per night making the average yearly income $26,597. The beautiful area draws in nature lovers and holiday-goers trying to reconnect with nature featuring captivating coastlines with breathtaking beaches making this location very profitable for Airbnb hosts.
The Yarra Ranges area takes the top spot for highest earnings in Victoria, charging $313 per night making the average yearly income $25,839. The stunning area boasts more than 200 hiking and cycling paths throughout the mountainous destination, all making this location very profitable for Airbnb hosts.
Queensland’s top earning destination is Noosa, offering stays costing $512 per night on average, Noosa holiday let owners can bring in $23,339 a year.
Byron Shire is New South Wales’ highest earning location, charging the sixth highest night rate in the state at $533 per night making the average yearly income $22,111. This is unsurprising as the world-famous Byron Bay lures in tourists from around the world.
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