Home saunas boost rental income by up to 25%

SDS Australia

New data shows a surge in demand for holiday rentals with wellness amenities.

Homes with saunas command rental rates of between 15% and 25% more than comparable homes without saunas. Data is based on analysis by SDS Australia that includes rental rates across ten premium New South Wales neighbourhoods.

Coastal locations such as Tamarama saw the highest boost to prices, with oceanfront properties featuring saunas commanding a premium of up to 25% for holiday rentals.

SDS Australia pulled data for all booked and vacant properties with saunas or comparable wellness amenities in ten suburbs which correspond to ten of the most luxurious neighbourhoods in NSW including Point Piper, Darling Point, Bellevue Hill, Vaucluse, Tamarama, Mosman, Double Bay, Woolwich, Longueville, and Kirribilli.

These properties were then compared to similar rentals belonging to the same postcodes that do not have wellness amenities to find out if there is any difference in rental rates.

The research found wellness amenities, such as a home sauna, added as much as $540 to the weekly asking price.

Saunas are the newest staple in NSW’s most luxe postcodes

Ben Ridgway, SDS Australia National Operations Manager, said saunas can improve property values and rental yields.

โ€œCoastal properties, especially those in holiday hotspots, are increasingly adding saunas as part of their wellness-oriented design offering,โ€ he said.

โ€œThe demand for wellness-enhancing amenities has increased as renters, especially those in affluent markets, prioritise mental and physical health during their stays. 

โ€œWeโ€™ve been seeing new homes with entire floors dedicated to house wellness amenities, including saunas but also cold plunges, and gyms.”

Ridgway said saunas are becoming a must-have feature for high-end renters, especially near coastal or scenic locations.

โ€œSauna inquiries in 2024 have doubled compared to what we received in 2023, signaling a massive increase in interest,โ€ Ridgway reports.

โ€œFor homeowners in NSWโ€™s most luxurious postcodes, adding a sauna isnโ€™t just about achieving personal wellness goals โ€” itโ€™s a strategic upgrade that significantly boosts property rental prices,โ€ Ridgway said.

Other key insights from the SDS Australia study:

  • Homes that include saunas and other wellness amenities, particularly near beaches or scenic areas, are booked twice more often.
  • Beachfront or ocean-view properties see the highest rate increases due to saunas, with Tamarama leading at a 25% premium

Greater Aussie interest in home saunas

Wellness amenities are a practical draw for health-conscious renters who value experiences that promote relaxation and stress release. Ridgway said demand for wellness amenities is on the rise.

The global wellness market, currently valued at over $27.4 trillion, has catalysed a shift in the way people view rental properties. This trend is particularly evident in Australia, which ranks among the top 10 countries for health and wellness spending, averaging AUD6,421 per capita.

โ€œSaunas cater to a demographic that values relaxation, stress relief, and recoveryโ€”benefits that appeal broadly but are especially enticing for health-conscious Australians and travellers,โ€ Ridgway explains.

Contact SDS Australia

Sources

Holiday rentals with a sauna in New South Wales. Airbnb.

The Global Wellness Economy: Country Rankings (2019-2022). Global Wellness Institute.

Hydrothermal Initiative 2024 Trends. Global Wellness Institute.

Boston Hospitality Review. Boston University School of Hospitality Administration.

The trends defining the $1.8 trillion global wellness market in 2024. McKinsey & Company.

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