Diving or thriving? How COVID-19 reshaped Australian short-term rental submarkets

Zhenpeng Zou, Thomas Sigler, Elin Charles-Edwards and Jonathan Corcoran

Environment and Planning B, 2025, vol. 52, issue 8, 2018-2036

Abstract: Short-term rental markets are constantly evolving in response to dynamic market conditions. Leveraging the large-scale external market shocks resulting from the COVID-19 pandemic, this paper aims to better understand how short-term rental submarkets are formulated in response to changing market conditions. Using sequence analysis on monthly booking records between mid-2019 and the end of 2022 in Australia, this paper identifies six distinct short-term rental types underlying their varying longevities on the market. Temporal, geographic, operational and hedonic characteristics are considered to differentiate thriving from diving market trends and derive a taxonomy that narrates six submarkets. The results reveal a shifting STR market landscape from central cities and longstanding tourist destinations to peri-urban regional towns and a shift from properties run by small-scale amateur hosts toward professionally operated rentals with substantially more space and amenities. This suggests that short-term rentals have emerged as a distinct accommodation class to hotels, albeit in ways that differ based on spatial context.

Keywords: Short-term rentals; Airbnb; COVID-19; Australia; market segmentation; sequence analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirb:v:52:y:2025:i:8:p:2018-2036

DOI: 10.1177/23998083251324268

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