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Best Places to Airbnb in California

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!

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!  

best areas for airbnb in california

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 targetting an entire city but missing out on a particular neighborhood that has an even greater chance of profitability!

best areas for airbnb in california

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
  • Occupancy Rate: 78%
  • Annual Revenue: $87,180
  • Average Daily Rate: $277

Based on Airbtics’ analytics tool, the best neighborhood in this area is Santa Barbara Downtown, which has an average occupancy rate of 80%. An average Airbnb host can earn an average daily rate of $288 in this neighborhood!

2. Yosemite
  • Occupancy Rate: 71%
  • Annual Revenue: $86,448
  • Average Daily Rate: $295

Based on Airbtics’ analytics tool, the best neighborhood in this area is Yosemite West, which has an average occupancy rate of 66%. An average Airbnb host can earn an average daily rate of $312 in this neighborhood!

3. San Francisco
  • Occupancy Rate: 68%
  • Annual Revenue: $56,412
  • Average Daily Rate: $203

Based on Airbtics’ analytics tool, the best neighborhood in this area is North Beach, which has an average occupancy rate of 51%. An average Airbnb host can earn an average daily rate of $124 in this neighborhood!

4. San Diego
  • Occupancy Rate: 67%
  • Annual Revenue: $79,344
  • Average Daily Rate: $293

Based on Airbtics’ analytics tool, the best neighborhood in this area is North Park, which has an average occupancy rate of 68%. An average Airbnb host can earn an average daily rate of $166 in this neighborhood!

5. Los Angeles
  • Occupancy Rate: 61%
  • Annual Revenue: $42,696
  • Average Daily Rate: $164

Based on Airbtics’ analytics tool, the best neighborhood in this area is Malibu, which has an average occupancy rate of 53%. An average Airbnb host can earn an average daily rate of $658 in this neighborhood!

6. Joshua Tree
  • Occupancy Rate: 60%
  • Annual Revenue: $51,852
  • Average Daily Rate: $205

Based on Airbtics’ analytics tool, the best neighborhood in this area is Yucca Valley, which has an average occupancy rate of 60%. An average Airbnb host can earn an average daily rate of $215 in this neighborhood!

7. Riverside
  • Occupancy Rate: 60%
  • Annual Revenue: $34,116
  • Average Daily Rate: $136

Based on Airbtics’ analytics tool, the best neighborhood in this area is Mission Inn Downtown, which has an average occupancy rate of 56%. An average Airbnb host can earn an average daily rate of $151 in this neighborhood!

8. Palm Springs
  • Occupancy Rate: 57%
  • Annual Revenue: $101,808
  • Average Daily Rate: $401

Based on Airbtics’ analytics tool, the best neighborhood in this area is Coachella Valley, which has an average occupancy rate of 64%. An average Airbnb host can earn an average daily rate of $239 in this neighborhood!

9. Lake Tahoe
  • Occupancy Rate: 50%
  • Annual Revenue: $50,640
  • Average Daily Rate: $252

Based on Airbtics’ analytics tool, the best neighborhood in this area is Incline Village, which has an average occupancy rate of 69%. An average Airbnb host can earn an average daily rate of $177 in this neighborhood!

10. San Bernardino
  • Occupancy Rate: 51%
  • Annual Revenue: $25,524
  • Average Daily Rate: $128

Based on Airbtics’ analytics tool, the best neighborhood in this area is Delaney Park, which has an average occupancy rate of 54%. An average Airbnb host can earn an average daily rate of $184 in this neighborhood!

General Overview 

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!

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