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Top ranking Short Term Rental Markets in 2023

As the year 2022 is about to end, most cities around the globe are opening their borders to welcome local and international tourists. Remote working has also been on the rise and it certainly contributed to the increase in short-term rentals, where digital nomad cities were mostly occupied. Airbnb recently revealed that the demand for stays of weeks and months is increasing and are expected to rise further due to the year-round peak season.

While there are surely a handful of available properties in your target area, only a few of them will turn out to be good Airbnb investments in the long run. This is why it’s important to take a look at the performance of markets that generate the most rental income! In this article, we will feature the best short-term rental markets in 2023 to help Airbnb hosts make the wisest investment decisions.

Overview of Short-term Rental Markets in 2022

Based on a recent discovery about Airbnb occupancy rates by city, Airbnb revealed that North America has the highest daily rate in 2021, but EMEA (Europe, Middle East, and Africa) had the highest average length of stay. Let’s go more into detail and take a look at some of the top markets for short term rentals & the most significant STR trends in 2022:

1. Regions with the Best Short-term Rental Markets

It’s a known fact that more travelers these days are booking properties situated within natural environments, because why not! A pretty view where you can unwind and perhaps accomplish work online – the trend for most digital nomads and travelers with families. 

Here are some of the top short-term rental markets (reservations) made so far in 2022 according to a short-term rental market analysis report. Interesting discovery: Coastal regions are the top tourist preference and I couldn’t agree more.

STR reservations 2021 2022
Rural areas 10% 28%
Mountainous areas 13% 55%
Coastal regions 34% 56%

Similarly, 6 out of 10 Airbnb cities in Florida were recognized to be one of the most preferred states to visit due to its close proximity to the coastal area. These are related to the top 10 most profitable Airbnb cities in the USA during the summertime of 2022.

2. Highest Expenditure of Short-term Rental Markets in the USA

Airbnb’s summer travel trend indicated most of the profitable cities in the USA which have been booked in 72,000 different cities and towns.

COUNTRY TOTAL US EXPENDITURE TOURISTS %
Turks and Caicos Islands $1,345,577,284 77%
Anguilla $686,411,038 55%
Virgin Islands $621,558,569 68%
top short term rental markets

Since coastal regions have been the most preferred areas for short-term rental bookings, the Turks and Caicos Islands have certainly topped off with the most expenditure. According to Airbtics’ data, here are some of the Airbnb key metrics to take note of for a 1-bedroom apartment (condo) in the Turks and Caicos Islands:

Annual Revenue Occupancy Rate Peak Seasons
$72,814 79% March - April (100% OR)

♦ Domestic & International Guests in the Turks and Caicos Islands

Specifically, the top origin cities of guests visiting Turks & Caicos Islands are from New York, Toronto, Chicago, and Atlanta.

top short term rental markets

Source: Airbtics

2. Anguilla
top short term rental markets

With Anguilla’s vast selection of beaches, you can never go wrong! As one of the most popular tourist destinations, we used an Airbnb calculator and filtered the 3-bedroom entire house in Anguilla:

Annual Revenue Occupancy Rate Peak Seasons
$88,679 66% March (100% OR)

♦ Domestic & International Guests in Anguilla

The top origin countries of guests visiting Anguilla are mainly the United States, Canada, France, UK, and Italy.

top short term rental markets
3.  United States Virgin Islands 

US Virgin Islands is ranked as the first country among the best short-term rental markets in Latin America with a median occupancy rate of 70% and a daily rate of $247. 

Annual Revenue Occupancy Rate Peak Seasons
$61,407 58% February (81% OR)

Domestic & International Guests in the US Virgin Islands

Airbtics shows that the main origin countries of guests in the US Virgin Islands are the US, Puerto Rico, and Canada, with the following guest origin cities:

top short term rental markets

Most Profitable Short-term Rental Markets in 2023

In order to make the wisest investment decisions, we gathered some of the best and profitable short-term rental markets for investment next year. By basing it on Airbnb key metrics from Airbtics such as the average annual revenue, occupancy rates, and cash on cash return, we were able to come up with the STR markets that will bring long-term profitability for investors. 

At the same time, considering the median and average property prices per square foot. Continue reading and look at the short-term rental market data per continent, along with the highest occupancy rate:

1. EUROPE 

Europe is responsible for almost half of the world’s tourist arrivals and there’s no doubt about each country’s profitability on Airbnb. While there are certainly the best short-term rental markets for investment in Europe as well as cities with high Airbnb occupancy rates in the UK, let’s take a look at the cities with the highest occupancy rates and daily rates, along with the property price sale and rent, cash-on-cash return, and annual revenue.

♦ Country with the Highest Occupancy Rate in Europe: Luxembourg73%
Luxembourg
  • Monthly Revenue of the Best Neighbourhood in Luxembourg:  Luxembourg City Centre: €4,347
  • Annual Revenue: €49,795 (2 bedroom apartment/condo)
  • Average Daily Rate: €181
  • Property Price Sale: €8,574 per square meter 
  • Average Price Rent: €24,00 per square meter
  • Net Rental Yield: 18%
Property Price Data in Luxembourg
Regions in Luxembourg Average Sale Average Rent (monthly) Monthly Revenue
Centre €10,923 €265 €1,451
Est €7,360 €265 €1,451
Nord €6,017 €165 €1,130
Ouest €8,273 €1,913 €1,183
Sud €7,361 €2,081 €2,066

Source for Monthly Revenue: Airbtics

Country with the Highest Daily Rate in Europe: Denmark – €502
top short term rental markets
  • Monthly Revenue of the Best Neighbourhood in Denmark: Copenhagen: €3,546
  • Annual Revenue: €62,136 (2-bedroom apartment/condo)
  • Average occupancy rate: 35%
  • Property Price Sale: €4,279 per square meter 
  • Average Price Rent: €25,42 per square meter (18,910 DKK)
  • Net Rental Yield: 19%
Property Price Data in Denmark
Regions in Denmark Average Sale Average Rent (monthly) Monthly Revenue
Aalborg €20,958 €5,410 €1,661
Aarhus/Arhus €33,201 €7,762 €2,405
Copenhagen €40,803 €11,030 €3,288
Esbjerg €16,066 €5,024 €1,211
Horsens €13,455 €4,774 €2,009
1. NORTH AMERICA 

Known as the third largest continent, North America is certainly the most preferred tourist destination next to Europe. According to Airbtics’ data, the USA has a median occupancy rate of 62%, next to Canada with 63%. While there are the best cities in Canada to invest in real estate, let’s take a look at the countries with the highest daily rate and occupancy rates:

♦ Country with the Highest Occupancy Rate in North America: Canada62%
top short term rental markets
  • Monthly Revenue of the Best Neighbourhood in Vancouver: Downtown Vancouver: C$5,908
  • Annual Revenue: C$93,945 (2-bedroom apartment/condo)
  • Average Daily Rate: C$278
  • Property Price Sale: C$748,450
  • Average Price Rent: C$828 per square meter
  • Net Rental Yield: 55%
Property Price Data in Canada
Regions in Canada Average Sale Average Rent (monthly) Monthly Revenue
Vancouver, BC C$1,036,000 C$3,707 C$4,606
Toronto, ON C$870,000 C$3,361 C$2,599
Burnaby, BC C$977,725 C$2,791 C$28,001
Oakville, ON C$1,516,155 C$2,736 C$2,334
Burlington, ON C$1,089,312 C$2,631 C$2,666
♦ Country with the Highest Daily Rate: United States of America$263
top short term rental markets
  • Annual Revenue: $71,706 (3-bedroom apartment/condo)
  • Average occupancy rate: 62%
  • Property Price Sale: $17,191 per square meter 
  • Average Price Rent: $222 per square meter
  • Net Rental Yield: 24%
Property Price Data in the United States of America
States in the USA Average Sale Average Rent (monthly) Monthly Revenue
Hawaii $1,038,544 $3,589 $7,709
District of Columbia $826,124 $1,815 $3,181
California $816,804 $1,726 $3,278
Washington $640,494 $2,335 $3,860
Massachusetts $611,819 $2,500 $3,979
3. LATIN AMERICA 

Let’s not forget that Latin America offers a vast and rich culture filled with exquisite food and literature, which attracts tourists! Based on Airbtics’ data, Puerto Rico and Bermuda are among the top 3 short-term rental markets in Latin America with 68% and 62% occupancy rates respectively. 

♦ Country with the Highest Occupancy Rate in Latin America: US Virgin Islands70%
top short term rental markets
  • Annual Revenue: $71,706 (3-bedroom apartment/condo)
  • Average Daily Rate: $234
  • Property Price Sale in St. Croix: $618,943
  • Average Price Rent: $1,292 monthly
  • Net Rental Yield: 24%
Property Price Data in United States Virgin Islands (USVI)
Major Islands in the USVI Average Sale Average Rent (monthly) Monthly Revenue
St. John $1,757,411 $1,633 $7,553
St. Thomas $861,503 $1,204 $5,036
St. Croix $618,943 $1,040 $2,755
♦ Country with the Highest Daily Rate in Latin America: Anguilla$1,240
Anguilla
  • Monthly Revenue of the Best Neighbourhood in Anguilla: West End Village: $15,829
  • Annual Revenue: $197,164 (3-bedroom apartment/condo)
  • Average occupancy rate: 41%
  • Property Price Sale: $747 per square foot 
  • Average Price Rent: $1,500 monthly
Property Price Data in Anguilla
States in Anguilla Average Sale Average Rent (monthly) Monthly Revenue
West End Village $785,000 $1,824 $5,479
Long Bay $345,400 $2,270 $7,315
Meads Bay $750,000 $2,530 $8,926
3. OCEANIA

Oceania’s great diversity of tropical coral is widely recognized across the globe. It may be the smallest continent, but it offers some of the biggest short-term rental investments! Australia has the highest occupancy and daily rates in the Oceania region, but there are certainly more countries to consider for investment. For instance, Airbnb Airbnb occupancy rates in Australia reveal that Darwin has the highest average monthly revenue among all the Australian cities.

♦ Country with the Highest Occupancy Rate in Oceania: Australia56%
Australia
  • Annual Revenue: A$79,087 (2-bedroom apartment/condo in Darwin)
  • Average Daily Rate: A$273
  • Property Price Sale: A$1,501 per square meter
  • Average Price Rent: A$828 per month
  • Net Rental Yield: 80%
Property Price Data in Australia
Capital Cities in Australia Average Sale Average Rent (weekly) Monthly Revenue
Adelaide A$748,000 A$430 A$4,099
Melbourne A$948,000 A$444 A$3,543
Perth A$849,000 A$472 A$3,363
Brisbane A$885,633 A$476 A$3,228
Hobart A$782,500 A$499 A$5,122
Darwin A$569,000 A$548 A$5,095
Sydney A$994,000 A$582 A$2,450
Canberra A$872,000 A$620 A$3,838
♦ Country with the Highest Daily Rate in Oceania: New Zealand $163
New Zealand
  • Annual Revenue: $70,152 (3-bedroom apartment/condo)
  • Average occupancy rate: 39%
  • Property Price Sale: $810,000
  • Average Price Rent: $1,467 monthly
Property Price Data in New Zealand
Capital Cities in New Zealand Average Sale Average Rent (weekly) Monthly Revenue
Auckland $748,000 $430 $4,099
Bay of Plenty $500,000 $2,206 $1,808
4. AFRICA

Africa offers various ethnic tourist destinations such as Victoria Falls, Nile River, and many tropical beaches with geological wonders. Airbtics’ data shows that South Africa and Cape Verde have a similar median daily rate of $67 and an occupancy rate of 23%.

♦ City with the Highest Occupancy Rate in Africa: Seychelles50%
Seychelles
  • Annual Revenue: $47,749 (2-bedroom apartment/condo)
  • Average Daily Rate: $219
  • Property Price Sale: $980,000 (0.49 Acres)
  • Average Price Rent: $1,852 per month
  • Net Rental Yield: 32%
Property Price Data in Africa
Capital Cities in Africa verage Sale (2br) Average Rent Monthly Revenue
Lagos ₦45,000,000 ($103,000) $6,872 (annual) $516 (₦226,310)
Kinshasa $330,000 $4,581 (annual) $1,903 (FC3,907)
Cairo EGP 5,400,000 ($274,494) $864 (monthly) $737 (EGP14,508)

Property price sources for Lagos & Kinshasa

♦ Countries with the Highest Daily Rate in Africa: Mauritania$178
Mauritania
  • Annual Revenue: A$70,152 (3-bedroom apartment/condo)
  • Average occupancy rate: 39%
  • Property Price Sale: A$810,000
  • Average Price Rent: $1,467 monthly

Conclusion: Finding The Best STR Markets 

There are several options to choose from when it comes to the best short-term rental markets across the globe. And by ‘best’, we mean it assures long-term profitability! The Airbnb metrics of STR markets presented in this blog can serve as your guideline towards profitable investment in 2023. 

With the help of Airbtics’ Airbnb calculator, creating an analysis, comparing one market to another, and in-depth research is no longer necessary! Get ahead of your competitors now and discover the hottest short-term rental markets in your area.

Airbtics
Airbnb Data
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