Airbnb has become one of the most divisive words in Western Australian property. New figures from Shelter WA and Inside Airbnb show that some of the state’s favourite holiday destinations now have hundreds of whole homes listed for short stays, while only a small handful are available for locals to rent long term.
The numbers have landed in State Parliament, where the WA Greens called for a freeze on new approvals and a levy on un-hosted short-stay homes. The motion didn’t pass, but the debate exposed a tension every property owner, investor and renter in WA should understand.
This guide breaks down the data, the political arguments on all sides, and what the current rules mean if you own, rent or invest in property. It also covers how Perth owners can think about the Airbnb question, even though the most extreme figures come from tourism regions rather than the metro area.
Airbnb Listings vs Available Rentals: The Numbers
The headline finding is simple. In several of WA’s best-known tourism areas, the number of short-stay properties dwarfs the number of homes available for long-term tenants.
The table below pulls together the figures from Shelter WA’s research and the Inside Airbnb database.
| Area | Un-hosted listings per available rental (Shelter WA) | Total listings (Inside Airbnb) | Share of listers with multiple properties |
|---|---|---|---|
| Fremantle | 22 | 534 | 65% |
| Augusta–Margaret River | 859 un-hosted vs 20 rentals (about 43 to 1) | 956 | More than 65% |
| Busselton, Dunsborough and Yallingup | Not reported | 1,675 | Not reported |
Across all of these areas, more than 90 per cent of listings are entire homes rather than single rooms or shared accommodation. That distinction matters, because a spare room in an owner-occupied house has very little effect on the rental market. A whole house that once had a tenant in it is a different story.
Fremantle: 22 Airbnb Properties for Every Available Rental
Fremantle is a perfect example of a port city where character, cafes and a busy port draw visitors year-round. Shelter WA’s data shows there were 22 un-hosted properties for every private rental available in the area.
Inside Airbnb recorded 534 properties advertised in total. About 65 per cent of the people listing those properties own more than one.
Augusta–Margaret River: 859 Airbnb Homes and Just 20 Rentals
The most striking gap is in the south-west. Shelter WA identified 859 un-hosted properties in Augusta–Margaret River, compared with only 20 available rental properties.
The independent database’s count is higher again at 956 properties, with more than 65 per cent of listers holding multiple listings. For a local hospitality worker, teacher or tradesperson, those numbers help explain why finding a long-term home feels almost impossible.
Busselton, Dunsborough and Yallingup: The State’s Biggest Airbnb Cluster
The Busselton, Dunsborough and Yallingup areas recorded 1,675 listings. That’s reported as 14.3 per cent of every listing in the state.
Waterfront locations such as Dunsborough are a big part of the story. Holiday demand is strong, nightly rates are attractive, and the incentive to convert a long-term rental into a short-stay is obvious.
Who Owns Airbnb Properties in WA?
One of the more eye-opening parts of the research is who is behind the listings. The picture isn’t dominated by families renting out a granny flat.
Shelter WA’s report, titled Death by 10,000 Cuts, found that 56 per cent of owners of un-hosted short-stay accommodation in WA had two or more properties listed. The database’s local data shows a similar pattern of 65 per cent or more in Fremantle and Augusta–Margaret River.
| Finding | Figure |
|---|---|
| Properties on the state’s short-stay register (as cited in Parliament) | Around 12,000 |
| Un-hosted owners with two or more properties | 56% |
| Listings that are entire homes in the areas studied | More than 90% |
| Share of un-hosted homes that would double rental supply if returned | One in three |
The report’s most talked-about estimate is that if just one in three un-hosted properties returned to the long-term rental market, available rental supply would double. That’s a big claim, and it explains why the short-stay debate has become so heated.
The Greens’ Push: A Moratorium and a Levy
WA Greens MP Tim Clifford moved a motion in Parliament arguing that un-hosted short-stay accommodation is growing at an unsustainable rate. He said it is contributing to serious shortages in the long-term rental market across the state.
Importantly, Clifford stressed that the motion wasn’t an attack on tourism or on people renting out a spare room. His focus was on the large-scale conversion of entire homes.
What the Motion Called For
Clifford asked the State Government to do two things in sequence.
- Introduce a moratorium, meaning a complete freeze on planning approvals for new short-stay accommodation.
- Follow it with a levy designed to remove the financial incentive for owners to run un-hosted short-stay rentals.
His argument was that the number of short-stay homes needs to actually fall, not just stop growing. He pointed to Victoria, which has introduced a short-stay levy, and said it has been effective there.
Clifford also argued that governments tend to focus on new housing builds, while thousands of existing homes are already being used as investment holiday lets. In his view, the fastest fix to the housing shortage is the stock that already exists.
The Government’s Response: “We Have Already Acted”
Minister Jackie Jarvis responded on behalf of the State Government. She acknowledged that pressure on the housing and rental markets is real, but rejected the idea that nothing has been done about short-term rentals.
Jarvis pointed to the government’s housing program, including new homes, land release, support for new projects and growth in the construction workforce. She also highlighted the 2024 reform package that created a mandatory statewide regulatory framework for short-term rentals.
Key Points From the Minister
- New land use terms now recognise hosted and un-hosted short-term rentals as distinct forms of accommodation for the first time.
- Un-hosted properties in the Perth metro area need development approval from the local government if rented for more than 90 nights in any 12-month period.
- Regional areas need more flexibility, so there is “no silver bullet”.
A Local Perspective From the South-West
Jarvis lives in Augusta–Margaret River and said her region depends on tourism. She noted that many tourism workers hold jobs because visitors are staying in short-term accommodation.
She also disagreed with the suggestion that these homes sit empty most of the year, saying that isn’t what she sees locally. She gave examples of farmers and creatives who earn extra income by renting a second dwelling on their property, and said that money is spent in the local community.
Ultimately, the government’s position is that short-term rentals must be managed properly, and that regulatory reform is how it is being done.
The Opposition’s View: Concerns About Red Tape
Liberal MP Neil Thomson also opposed the motion, but for different reasons. He said Clifford’s intentions were good but that good intentions weren’t enough to justify support.
Thomson argued the government has taken its eye off the ball on housing development and hasn’t done enough to cut red tape and encourage investment. He said he couldn’t back adding more regulation to the short-stay sector.
So while the Greens and the government disagree on whether enough has been done, the Opposition’s concern is that more rules could make the housing problem worse, not better.
What Happened to the Motion?
Despite support from fellow Greens members and the Animal Justice Party, the motion lapsed under standing orders. That means it wasn’t voted down, but it also didn’t progress.
The practical result is that there is no moratorium and no levy on the table right now. The existing framework remains in place, and the debate is very likely to return.
How WA’s Current Airbnb Rules Work
For owners, the more useful question is what applies today. The framework rests on the State’s short-term rental accommodation legislation from 2024, which created a register and new planning terms.
| Type of stay | What it means | Planning approval needed? |
|---|---|---|
| Hosted | The owner lives on site and rents a room or part of the home | Generally no |
| Un-hosted, Perth metro, 90 nights or fewer in 12 months | Guests have the whole home, used occasionally | No, but registration is still required |
| Un-hosted, Perth metro, more than 90 nights in 12 months | A whole home let out regularly | Yes, development approval from the local government |
| Un-hosted, regional WA | Guests have the whole home | Depends on the local government |
Registration is required for short-term rental premises, and registrations run for 12 months before they need renewing. Booking platforms are also expected to check that WA listings appear on the register.
If you’re thinking of running an Airbnb, it’s worth confirming your local council’s position before you list. Planning approvals can take time, and the penalties for operating outside the rules can be significant.
Airbnb or Long-Term Tenant: What Should Owners Weigh Up?
Many investors are asking whether the higher nightly rate on Airbnb is really worth the extra effort. The answer depends on the property, the location and your appetite for hands-on management.
| Factor | Short-stay (Airbnb) | Long-term rental |
|---|---|---|
| Income pattern | Variable, seasonal and event-driven | Steady weekly rent under a lease |
| Management effort | High: cleaning, check-ins, guest messages, reviews | Lower: routine inspections and rent collection |
| Regulation | Registration plus possible planning approval | Residential tenancy rules |
| Vacancy risk | Quiet periods can be long | Low in a tight rental market |
| Political risk | Levy or moratorium proposals may return | More stable policy settings |
| Wear and tear | Frequent turnover of guests | Fewer occupants over a longer period |
REIWA describes a vacancy rate of 2.5 to 3.5 per cent as a balanced rental market. WA’s vacancy rate has been sitting below that range for a long time, which means a well-presented long-term rental can lease quickly with minimal downtime.
The Government Incentive to Convert
The State Government has also offered a one-off $10,000 incentive for eligible owners who permanently convert a short-stay property into a long-term rental. Eligibility rules and availability can change, so it’s worth checking the current terms before making a decision.
For some owners, particularly those who have found short-stay letting more demanding than expected, that payment plus a reliable tenant may be an attractive alternative.
What It Means for Tenants and Buyers
For tenants, the message is that competition for rentals in tourism towns can be fierce. When a town has dozens of Airbnb listings for every available lease, workers and families are often forced to look further afield or move away.
That can flow through to local businesses, which rely on staff who can afford to live nearby. It’s one reason the Airbnb question is as much an economic issue as a housing one.
For buyers, the picture is more mixed. Areas with heavy holiday-letting activity may see stronger investor demand, which can affect prices and the mix of owner-occupiers in a street. If you’re buying near the coast, it’s sensible to check whether neighbouring properties are used as Airbnb rentals and how your local council approaches them.
What Perth Owners and Investors Should Take From This
The most extreme figures come from Fremantle and the south-west, but the lessons apply across the Perth metro area. The 90-night rule, the register and the development approval requirement all apply to metropolitan owners.
Here are the practical takeaways.
- Check your numbers honestly. Compare realistic Airbnb income after cleaning, platform fees, furnishing, utilities and vacancy with the rent a long-term tenant would pay.
- Confirm your compliance. Make sure the property is registered and that you know how many nights you are renting.
- Watch the policy debate. A levy or freeze might not be law today, but the discussion shows where political pressure is heading.
- Think about your exit options. A property that suits both short-stay and long-term rental gives you more flexibility if the rules change.
- Get local advice. Council planning positions differ, and suburb-level rental demand can vary a great deal.
What to Watch Next
The Airbnb debate isn’t going away. The motion lapsed, but the data behind it will keep circulating, and housing affordability remains a top concern for WA voters.
Watch for updates to the short-stay register figures, any changes to local planning schemes, and further research on how many un-hosted properties could return to the long-term market. Any move towards a levy or approval cap would have a direct effect on owners’ returns.
Airbnb in WA: Frequently Asked Questions
Is Airbnb legal in Western Australia?
Yes. Short-term rental accommodation is legal in WA, but properties must be registered, and un-hosted homes in the Perth metro area need council development approval if rented for more than 90 nights in a 12-month period.
Did the Greens’ Airbnb moratorium pass?
No. The motion for a moratorium and levy lapsed under standing orders, so neither measure is currently in place.
How many properties are on WA’s short-stay register?
Tim Clifford told Parliament that around 12,000 properties are listed on the state’s register.
Would more rentals become available if Airbnb homes returned to the market?
Shelter WA estimates that returning one in three un-hosted properties to long-term rental would double the available rental supply. Others argue tourism jobs and local income depend on short-stay accommodation, so the effect is contested.
Should I list my investment property on Airbnb or rent it long term?
It depends on your location, your appetite for management work and your income goals. A side-by-side comparison of realistic net returns, plus a check of the current rules, is the best starting point.
Thinking About Your Airbnb Options? Talk to Holdsworth Real Estate
If you own a property and are weighing up Airbnb against a long-term tenant, our property management team can give you a realistic view of what your home could earn as a rental in today’s tight market. We can also walk you through your compliance obligations and options if you’re considering a change of strategy.
Contact Holdsworth Real Estate today for a rental appraisal and a straightforward conversation about the best use of your investment.
