Blue Mountains

As of May 2026, Katoomba, Leura, Blackheath have 1,519 active Airbnb and VRBO listings. This represents a 4% decrease from the previous year.

The average Airbnb or VRBO in Blue Mountains generates A$53K per year. High-performing properties earn A$101K/year, while low-performing properties earn A$27K/year. This wide revenue variance suggests that market returns are highly sensitive to property-specific appeal rather than broad market trends, as high performers capture nearly four times the revenue of lower-tier listings.

Airbnb and VRBO can be profitable in Blue Mountains. Average annual revenue is A$53K with 37% occupancy. High-performing properties earn up to A$101K/year. The delta between average and top-tier earnings indicates a polarized market where a select group of rentals effectively dominates the available demand pool.

The average occupancy rate for Airbnbs and VRBOs in Blue Mountains is 37%. This occupancy level, combined with an average nightly rate of A$341, results in a RevPAR (revenue per available room) of A$106 per day.

4+ bedroom properties demonstrate the strongest performance in Blue Mountains, with annual revenue of A$70K. These properties balance operating costs and rental demand most effectively in the Blue Mountains market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Blue Mountains area. Katoomba: Moderate. NSW registration required, fire safety compliance, 90-day cap for non-hosted unless approved. Blue Mountains Council monitors complaints but enforcement is reactive rather than proactive. Leura: Moderate. Same NSW rules apply - registration mandatory, 90-day unhosted limit, fire safety standards. Council responds to neighbor complaints but many hosts operate full-time rentals. Blackheath: Moderate. NSW registration and 90-day cap required for unhosted stays. Limited active enforcement; compliance largely complaint-driven. Many operate year-round. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Blue Mountains Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 4% year-over-year, while RevPAR has decreased 11%. This indicates balanced supply-demand dynamics. The simultaneous contraction in both supply and revenue suggests that demand is currently softening at a rate that offsets the reduction in total market inventory.

Launch around January, 2-3 months before peak spring season (April peaks). This pre-peak timing lets you build reviews when competition is -5% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (September-February) when gaining traction is harder.

The most common amenities in Blue Mountains listings include: Kitchen (98%), Tv (85%), Heating (75%), Balcony (72%), Washing Machine (70%). Amenities that boost revenue the most include Hot Tub, Washing Machine, Bbq, with Hot Tub properties earning approximately 45% more (A$88K/year vs A$61K/year).

Monthly estimated revenue per listing in Blue Mountains over the last 12 months: May: A$3K, June: A$3K, July: A$4K, August: A$3K, September: A$3K, October: A$3K, November: A$3K, December: A$4K, January: A$4K, February: A$2K, March: A$3K, April: A$5K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Blue Mountains is A$341, up 5% year-over-year. By property size: 1-bedroom properties average A$225/night, 2-bedroom properties average A$294/night, 3-bedroom properties average A$356/night, 4+ bedroom properties average A$604/night. Rates peak in April and are lowest in February.

Guests in Blue Mountains book an average of 35 days in advance, down 20% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 34 days, 3-bedroom: 36 days, 4+ bedroom: 42 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Blue Mountains Airbnb and VRBO market has seen the following changes: supply declined 4%, revenue per listing decreased 11%, occupancy fell 10%, average nightly rates increased 5%, and lead time decreased 20%. These shifts highlight a trend toward shorter, more spontaneous booking cycles amidst a tightening competitive environment.

In Blue Mountains, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 71% higher occupancy than weekdays.