How short-term rentals help everyday Aussies achieve financial freedom

With the rising cost of living putting many Australians under pressure many are searching for new ways to supplement their income, and short-term rentals are an increasingly attractive option.

For married couple Caroline and Daniel, listing their spare bedroom on Airbnb has given them a newfound sense of economic empowerment.

“We live in a three-bedroom home in Hornsby and it’s just the two of us,” Caroline, 36, explains. “Two years ago, we decided to Airbnb our spare bedroom after my cousin had success on the platform. We didn’t expect to get a lot of bookings as we don’t live close to the city centre, but we did.”

While both Caroline and Daniel work full-time, the extra income they receive from the short-term rental platform allows them to worry less about their finances including paying off their mortgage. “In the past, we were pretty conscious of our spending,” Caroline says.

“We didn’t go shopping for luxuries often or go out multiple times a week. With the income we receive from hosting, we can enjoy life a little bit more. It covers our groceries and monthly needs, allows us to eat out and helps us travel and explore other cities.”

Living life on your own terms

Caroline and Daniel aren’t the only Australians to use short-term rentals as a way to help make ends meet. According to a survey completed by Airbnb hosts from July 2024 to June 2025, 56% of Hosts self-report that hosting on Airbnb allows them to meet the rising cost of living. This is supported by data released by Oxford Economics that demonstrates the significant contribution that the Airbnb community makes to the Australian economy.

“Hosting provides a flexible way to supplement earnings without changing jobs or increasing hours worked,” says Michael Brennan, head of economic impact at Oxford Economics Australia.

“In a period of persistent inflation, this additional income can make a measurable difference to household budgets.”

This is certainly the case for Caroline and Daniel, who find sharing their spare bedroom with guests a low-effort way to offset mortgage and bills. “We work from home most of the time, so whenever we have a changeover of visitors, we can clean the space and one of us is always there to greet the guests.”

Senior financial advisor Stevie-Jade Turner notes that short-term rentals can also help manage larger expenses like mortgage repayments.

“If you have a spare room or dual-purpose space, like a granny flat or holiday home, you are basically sharing or reducing costs that would otherwise be there anyway,” she explains.

According to Turner, short-term rentals also provide more flexibility. “If you want to use the property sometimes (like a holiday home) and earn income from it when not in use, this strategy can facilitate greater financial independence. You are in control and can decide if and when you want or need to produce income from your asset,” she says.

Sharing the benefits

The advantages of short-term rentals go far beyond the household budget. “When people earn through hosting, that money is spent in their communities on everyday goods, services and small improvements to their homes,” Brennan says.

“Those transactions support jobs and business turnover across many sectors.”

Indeed, according to the Oxford Economics report, Airbnb host and guest activity contributed more than $20 billion to Australia’s GDP in 2024 and supported 107,000 jobs. In New South Wales alone, Airbnb added $6.6 billion to the GSP and generated $2.2 billion in wages, accounting for the largest impact of any state.

For hosts like Caroline and Daniel, it’s easy to see how short-term rentals can benefit both personal finances and the wider economy. To support their community and ensure visitors experience a comfortable stay, the couple regularly purchase small goods and amenities for guests from local stores and encourage them to explore the town. “We also have a guidebook to promote the local area and we recommend nice places to eat out or visit,” Caroline adds.

But it’s not all about the money. As Caroline explains, short-term rentals also allow hosts and guests to connect over new experiences. “What’s special about hosting is that we get to meet a lot of people,” she says. “Some of them become friends. We learn about their background, they learn things from us and we’re able to promote the area and its beautiful bushwalks.”

For further information on the Oxford Economics’ research, visit https://www.airbnb.com.au/e/ppap_australiaimpact