Last updated on August 16th, 2023
Learn about the best places to Airbnb in Chicago in 2023! This article features expert tips for Airbnb investment and Airbnb data in Chicago.
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Learn about the best places to Airbnb in Chicago in 2023! This article features expert tips for Airbnb investment and Airbnb data in Chicago.
- Last updated on
- August 16, 2023
Key Takeaways
- Chicago’s overall economic stability & tourism has helped various hosts in the area to earn a passive income. Particularly during big events such as Lollapalooza, where most tourists across the globe visit Chicago for the music festival.
- Discover what real estate investors can anticipate when starting an Airbnb investment in Chicago and nearby areas. Primarily highlighting the potential profitability of Airbnb investment in Chicago – along with its annual revenue and gross rental yield.
- Learn about the top 10 profitable areas for Airbnb nearby Chicago along with the Airbnb dataset. This includes the most recommended property size and the number of bedrooms to achieve a high gross rental yield.
Introduction
Chicago has one of the strongest and steadiest economic stability, making it a suitable city for real estate investment. Even during the pre-pandemic and re-opening of borders, this city’s tourism industry was consistently on an upward trend.
The Chicago government even noted an 86% increase in tourism in 2021, generating $1.3 billion in tourism tax revenue.
In fact, Airbnb also recently shared the high demand for accommodation due to big events happening across Chicago. They stated that more Airbnb hosts opened their doors to travelers and helped them earn extra income.
Are you looking to start a real estate investment in Chicago but don’t know where to start?
This article will guide you through! We’ll present the Airbnb dataset in Chicago, set expectations for Airbnb investment, and discover the top 10 cities nearby Chicago. Continue reading to learn more.
Why invest in an Airbnb in Chicago?
There are various reasons why property investors are eyeing property investments in Chicago. Apart from the city’s tourist attractions and iconic events, here are some of the major reasons why investing in an Airbnb in Chicago is ideal:
1. Strong Renters Market
Chicago agent magazine revealed that this city is one of the top 10 cities for real estate investment in 2023. Over 50% of Chicago’s population are renters, which redirects to a strong rental market. Since it is also considered one of the most affordable metros, more renters are looking for housing opportunities.
2. Strong Economy & Job Growth
Chicago is home to more than 390 major corporate headquarters and has the third-largest gross metropolitan product in the USA. Not to mention its 5 major professional sports teams and major universities! Because it offers bountiful job opportunities, Chicago is wrapped as a perfect package for property investors.
3. High Quality of Life
In comparison to other major cities in America, Chicago offers a relatively affordable cost of living. In fact, Forbes even ranked it as one of the best places to do business and leverage careers. Chicago’s high quality of life is one of the perks for both investors and residents alike!
Is Airbnb Profitable in Chicago?
Airbtics confirms that Airbnb is certainly profitable in Chicago. It’s good to note, however, that the level of profitability depends on your location and property type. Rental Arbitrage in Chicago is also a popular option for those who are on a limited budget!
According to Airbtics’ data, an Airbnb host can earn up to $109,551 annually for operating a 4-bedroom property in Chicago, Illinois. You can also anticipate a good GRY of 29.35%.
Source: Airbtics Dashboard
Top 10 Best Areas to Airbnb nearby Chicago
Chicago has almost 100 neighborhoods and suburbs, so it can be difficult to filter the best ones. Using Airbtics’ Discovery Tool, we discovered the nearby cities & best places to Airbnb in Chicago:
1. Chicago City
To operate an Airbnb in Chicago, hosts will have to register with their local city and obtain a Shared Housing Operator License (for more than 1 registration).
- Best bedroom size: 4 bedrooms
- Median property price (4-bedroom): $373,320
- Airbnb Annual revenue: $109,551
- Gross rental yield: 29.35%
2. South Bend
Getting a short-term rental permit from the local government of Indiana is required to operate an Airbnb. South Bend is located about 71 miles from Chicago (1 hour & 41 mins drive).
- Best bedroom size: 4 bedrooms
- Median property price (4-bedroom): $228,200
- Airbnb Annual revenue: $100,778
- Gross rental yield: 44.16%
3. Milwaukee
If you’re planning to start an Airbnb business in Milwaukee, the best part is that there are currently no Airbnb regulations. Milwaukee is about 83 miles from Chicago (1 hour & 28 mins drive).
- Best bedroom size: 3 bedrooms
- Median property price (3-bedroom): $185,356
- Airbnb Annual revenue: $61,148
- Gross rental yield: 32.99%
4. Saint Louis
St. Louis does not have any city ordinance about short-term regulations. It is located about 146 miles from Chicago (4 hours & 35 mins drive).
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): $136,194
- Airbnb Annual revenue: $30,804
- Gross rental yield: 22.62%
5. Indianapolis
To operate an Airbnb in Indianapolis, it is required to get a short-term rental permit from the local government of Indiana. Indianapolis is situated 183 miles from Chicago (2 hours & 59 mins drive).
- Best bedroom size: 2 bedrooms
- Median property price (2-bedroom): $152,871
- Airbnb Annual revenue: $46,072
- Gross rental yield: 30.14%
6. Green Bay
Green Bay is a city in Milwaukee so it follows no specific Airbnb regulations. Green Bay is located 183 miles from Chicago (3 hours &17 mins drive).
- Best bedroom size: 3 bedrooms
- Median property price (3-bedroom): $205,571
- Airbnb Annual revenue: $66,990
- Gross rental yield: 32.59%
7. Ann Arbor
A short-term rental license is required prior to operating an Airbnb in Ann Arbor. Located Indianapolis is situated 196 miles from Chicago (3 hours & 49 mins drive).
- Best bedroom size: 2 bedrooms
- Median property price (2-bedroom): $294,242
- Airbnb Annual revenue: $54,464
- Gross rental yield: 27.67%
8. Traverse City
Traverse City requires all Airbnb hosts to get a permit unless the property is located in a commercial zoning district. It’s also situated 223 miles from Chicago (5 hours & 6 mins drive).
- Best bedroom size: 2 bedrooms
- Median property price (2-bedroom): $327,394
- Airbnb Annual revenue: $67,320
- Gross rental yield: 20.56%
9. Cincinnati
All Airbnb hosts in Cincinnati must register their short-term rentals and obtain liability insurance. Cincinnati is located 250 miles from Chicago (4 hours & 40 mins drive).
- Best bedroom size: 3 bedrooms
- Median property price (3-bedroom): $221,368
- Airbnb Annual revenue: $53,521
- Gross rental yield: 24.18%
10. Louisville, KY
To operate an Airbnb in Indianapolis, it is required to get a short-term rental permit from the local government of Indiana. Indianapolis is situated 183 miles from Chicago (2 hours & 59 mins drive).
- Best bedroom size: 3-bedrooms
- Median property price (3-bedroom): $232,828
- Airbnb Annual revenue: $73,499
- Gross rental yield: 31.57%
Conclusion
Nearby cities in Chicago have several exciting property investment opportunities. There are other neighborhoods that can bring exceptional rental yields and annual revenue, so it’s best to explore them now! The best investment property in Chicago can be discovered in one click and the same goes for other profitable STR locations in the US.
Now that you have an overview of Airbnb Chicago dataset, take a look at Airbtics’ Airbnb profit calculator and stand out among the rest. It’s built to help you maximize profitability and find long-term profitable investments. Get ahead of your competitors now and look at other Chicago investment properties!
Short-Term Rental Data
Short-Term Rental Data
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