Victoria's Airbnb boom is over, but don't expect a rental windfall. The state government's new Airbnb levy aimed to boost social housing revenue, but data shows short-stay listing growth has stagnated in 2025, threatening the financial goals of Homes Victoria. Analysts attribute the slowdown to cooling demand, not higher tax levies. Despite the levy's intent to shift short-term listings to long-term rentals, studies indicate most owners use properties for personal holidays or plan to move in, making long-term leasing less appealing. The revenue from the tax, which applies to stays under 28 days, is intended for social and affordable housing, but the government's projection of $75 million annually is uncertain. The financial situation of Homes Victoria, which has operated in deficit, remains precarious, and the levy may not significantly improve it. Critics argue the tax is a desperate attempt to fix failing finances, while the government defends its role in increasing housing supply and easing cost-of-living pressures.
