10 Best Places to Airbnb in California: With Free Airbnb Data

Last updated on September 8th, 2023

Best Places to Airbnb in California: Looking for the best profitable Airbnb areas in California? Check out the top cities & neighborhoods where property investors are targetting!

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Looking for the best profitable Airbnb areas in California? Check out the top cities & neighborhoods where property investors are targetting!

September 8, 2023

Before investing in a property in California, it’s important to analyze your options and gauge your profitability based on Airbnb’s key metrics. In this article, we’ll feature the top 10 best areas for Airbnb in California along with their respective occupancy rates, monthly & yearly revenue, average daily rates (ADRs), and so much more!

Is Airbnb Profitable in California?

Short-term rentals in California can definitely be a source of passive income because of the many tourists visiting annually. For example, a typical 1 BD apartment has a steady 50% occupancy rate and can generate $30,500 annually!

To cut the story short, Airbnb is definitely profitable in California! For instance, based on an Airbnb income calculator, you can earn a whopping $6,612 monthly in San Diego alone! This area is attracting millions of visitors from around the globe for attractions such as The San Diego Zoo, San Diego Zoo Safari Park, SeaWorld San Diego, and LEGOLAND California.

Not yet convinced? Feel free to listen to one of our interviewees from Into The Airbnb Podcast – an Airbnb host consultant & property manager from California:

Rental Arbitrage in California

If you want to start an Airbnb investment in California but are financially limited to purchasing your own property, don’t worry. You can still earn a passive income in two words: Rental Arbitrage! This refers to the practice of renting out properties for the sole purpose of sub-letting them on platforms such as Airbnb or HomeAway.

However, if you only want to do Airbnb during your free time and are worried about not having to manage your listings properly, then it’s best to take a look at the best property management companies in California to lessen the burden!

It may be a challenge to find landlords for Airbnb rental arbitrage since there are certain restrictions in other areas and other landlords simply do not allow it due to insurance policies. In addition to this, you also have to consider major factors in starting a rental arbitrage business in your preferred city. This includes rules & regulations, where to find the most profitable area, & how to find rental arbitrage properties.

Rental Arbitrage in San Diego is certainly legal and there are ways to predict your listing’s profitability. For instance, a short-term rental analytics tool can assure your nightly revenue of $276 for a 1-bedroom apartment in San Diego with a steady occupancy rate of 72%. These Airbnb key metrics should be strictly monitored as your business’ profitability depends on them!

Given the fact that California is a practical investment destination for property investors, you can always have the option to do Rental Arbitrage in California and earn money while you’re saving up to own a property.

Top 10 Most Profitable Cities & Neighborhoods for Airbnb in California

California offers excellent investment opportunities for property investors, so we went ahead and did the heavy work for you! Oftentimes, the struggle is targeting an entire city but missing out on a particular neighborhood that has an even greater chance of profitability!

Using Airbtics’ market analysis, we were able to accurately get a grasp of Airbnb demand in California and filtered the top 10 most profitable cities:

1. Santa Barbara

Annual Revenue: $58,334
Occupancy Rate: 56%
Average Daily Rate: $312

Based on Airbtics’ analytics tool, the best neighborhood in this area is Santa Barbara Downtown. It has an average occupancy rate of 53%. The average daily rate in this neighborhood is $281.

2. Yosemite

Annual Revenue: $100,984
Occupancy Rate: 52%
Average Daily Rate: $424

Based on Airbtics’ analytics tool, the best neighborhood in this area is Yosemite West. It has an average occupancy rate of 65%. The average daily rate in this neighborhood is $323.

3. San Francisco

Annual Revenue: $32,607
Occupancy Rate: 56%
Average Daily Rate: $152

Based on Airbtics’ analytics tool, the best neighborhood in this area is North Beach. It has an average occupancy rate of 30%. The average daily rate in this neighborhood is $136.

4. San Diego

Annual Revenue: $36,739
Occupancy Rate: 49%
Average Daily Rate: $199

Based on Airbtics’ analytics tool, the best neighborhood in this area is North Park. It has an average occupancy rate of 50%. The average daily rate in this neighborhood is $178.

5. Los Angeles

Annual Revenue: $30,868
Occupancy Rate: 56%
Average Daily Rate: $155

Based on Airbtics’ analytics tool, the best neighborhood in this area is Malibu. It has an average occupancy rate of 35%. The average daily rate in this neighborhood is $1,106.

6. Joshua Tree

Annual Revenue: $36,684
Occupancy Rate: 44%
Average Daily Rate: $200

Based on Airbtics’ analytics tool, the best neighborhood in this area is Yucca Valley. It has an average occupancy rate of 37%. The average daily rate in this neighborhood is $239.

7. Riverside

Annual Revenue: $12,372
Occupancy Rate: 29%
Average Daily Rate: $93

Based on Airbtics’ analytics tool, the best neighborhood in this area is Mission Inn Downtown. It has an average occupancy rate of 35%. The average daily rate in this neighborhood is $125.

8. Palm Springs

Annual Revenue: $41,612
Occupancy Rate: 40%
Average Daily Rate: $306

Based on Airbtics’ analytics tool, the best neighborhood in this area is Coachella Valley. It has an average occupancy rate of 36%. The average daily rate in this neighborhood is $449.

9. Lake Tahoe

Annual Revenue: $61,838
Occupancy Rate: 50%
Average Daily Rate: $312

Based on Airbtics’ analytics tool, the best neighborhood in this area is Incline Village. It has an average occupancy rate of 43%. The average daily rate in this neighborhood is $314.

10. San Bernardino

Annual Revenue: $31,628
Occupancy Rate: 36%
Average Daily Rate: $221

Based on Airbtics’ analytics tool, the best neighborhood in this area is Crestline. It has an average occupancy rate of 42%. The average daily rate in this neighborhood is $199.

General Overview

Now that you have a deeper understanding of the best short-term rental markets in California, , don’t just stop here and miss out on greater opportunities.

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial not to make decisions based on wild guesses. The data points mentioned in this article such as Airbnb occupancy rates per city, annual revenue, and average daily rates should be your basis for investing in properties in California – or other cities with high occupancy rates.

Hence, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city. With the help of our all-in-one analytics service, you can vastly enhance your monthly revenue, create a comparison for each neighborhood, add the appropriate amenities and so many more exciting features. Try Airbtics today and think of long-term profitability!

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10 Best Places to Airbnb in California: With Free Airbnb Data

10 Best Places to Airbnb in California: With Free Airbnb Data