Last updated on December 13th, 2022
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!
Best Airbnb Markets in Cali: Airbnb’s Trending Cities
Based on a recently released article about Airbnb’s top cities this summer of 2022, guests have searched for domestic summer destinations in the USA with over 10,000 searches. This simply means that vacationers are super ready to spend money and have fun under the sun! The travel demand has continuously recovered in comparison to pre-pandemic data.
Here’s an interesting fact about the domestic Top Airbnb cities in America: 1 out of 10 cities is located in California!
Is Airbnb Profitable in California?
Based on our recent article about Airbnb occupancy rates in California, particularly in Los Angeles, an average 1 BD / BA apartment has a steady 64% occupancy rate and can generate $3,795 monthly! Short-term rentals in California can definitely be a source of passive income because of the many tourists visiting 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:
- Occupancy Rate: 84%
- Annual Revenue: $88,831
- Average Daily Rate: $293
Based on Airbtics’ analytics tool, the best neighborhood in this area is Santa Barbara Downtown, which has an average occupancy rate of 85%. An average Airbnb host can earn an average daily rate of $297 in this neighborhood.
- Occupancy Rate: 59%
- Annual Revenue: $27,458
- Average Daily Rate: $133
Based on Airbtics’ analytics tool, the best neighborhood in this area is Mission Inn Downtown, which has an average occupancy rate of 66%. An average Airbnb host can earn an average daily rate of $143in this neighborhood.
8. Palm Springs
- Occupancy Rate: 55%
- Annual Revenue: $55,443
- Average Daily Rate: $257
Based on Airbtics’ analytics tool, the best neighborhood in this area is Incline Village, which has an average occupancy rate of 56%. An average Airbnb host can earn an average daily rate of $278 in this neighborhood.
10. San Bernardino
- Occupancy Rate: 40%
- Annual Revenue: $37,894
- Average Daily Rate: $234
Based on Airbtics’ analytics tool, the best neighborhood in this area is Crestline, which has an average occupancy rate of 50%. An average Airbnb host can earn an average daily rate of $159 in this neighborhood.
Now that you have a deeper understanding of which particular area to target in California and some of the major Airbnb metrics to consider, don’t miss out on greater opportunities. Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial 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!
Robyn is a passionate content writer about short-term rentals and is dedicated to research & sharing property investment strategies and analysis worldwide. She is a graduate of Alliance Française de Manille, a songwriter, an animal advocate, and an avid fan of The Beatles since birth.