Victoria's Airbnb boom is over, but don't expect a rental windfall. The growth in short-stay accommodations has stalled, threatening the state government's plans to generate revenue for social housing through a new Airbnb levy. Data from AirDNA reveals that the number of short-stay listings on platforms like Airbnb and Stayz stagnated in 2025, the year the 7.5% levy was introduced. However, analysts attribute the slowdown to a cooling market after reaching a peak in customer demand, rather than the tax itself. Despite the government's projections, the levy may not significantly impact the financial situation of Homes Victoria, which has been operating at a deficit since 2021. The tax aims to incentivize property owners to shift short-term listings back into the long-term rental market, but studies show that many owners are not likely to make this switch due to personal reasons or laws favoring renter rights. The revenue generated from the levy is intended to fund social and affordable housing, but the current financial situation of Homes Victoria remains precarious. The opposition leader criticizes the levy as a 'desperate attempt' to fix the agency's finances, while the government spokesperson defends the measure as a way to increase supply and provide more opportunities for Victorian families to find homes.
