Despite increasing public debate about short-term rentals and their impact on housing availability, the behaviour of Australian property investors tells a very different story.
The overwhelming majority are not chasing holiday letting returns. Instead, they are sticking with long-term tenants and prioritising stability, predictability, and sustainable asset performance. New survey data from the Property Investment Professionals of Australia provides a clear snapshot of investor sentiment nationwide. According to the survey, more than 92 percent of property investors have no exposure at all to the short-term rental market. This means the vast majority of rental properties are already being used for permanent housing rather than holiday accommodation.
Even among recent buyers, interest in short-term letting remains minimal. Only 1.7 percent of investors who purchased property in the past 12 months say they intend to use it for short-term rental purposes. That figure is particularly telling, as newer investors are often assumed to be more willing to experiment with alternative strategies. In reality, they appear to be making similar decisions to experienced investors, favouring consistency over complexity. One of the key reasons behind this preference is risk management. Short-term letting often brings higher income potential in specific locations and during peak seasons, but it also introduces income volatility. Vacancies can fluctuate dramatically, particularly outside holiday periods. For investors focused on long-term wealth creation, unpredictable cash flow is rarely appealing.
The survey found that more than 60 percent of investors are concerned about the higher risk of property damage associated with short-term stays. Increased wear and tear, frequent guest turnover, and less personal accountability all contribute to these concerns. On top of that, holiday letting typically requires far more hands-on management. Booking coordination, cleaning schedules, guest communication, and maintenance issues can quickly turn a passive investment into a time-intensive operation.
PIPA chair Cate Bakos says most serious investors are focused on stability and long-term asset growth rather than chasing short-term gains. From a professional investment perspective, holiday home markets are often considered speculative. They tend to rely heavily on tourism trends, seasonal demand, and broader economic conditions, all of which can shift quickly. This long-term mindset is becoming even more relevant as councils tighten regulations around short-term accommodation. Brisbane City Council recently announced that from July next year, permits will be required for those wanting to continue operating short-term rentals. Similar policy changes are being explored in other regions as governments attempt to balance tourism with housing availability.
For many investors, these regulatory changes simply reinforce a strategy they were already committed to. Long-term rentals offer consistent income, simpler management, and alignment with proven wealth-building principles. In an environment where certainty matters, permanent tenants remain the clear preference.
