Looking for the best places for Airbnb has always been a persistent challenge for many investors. And it will undoubtedly remain a top consideration in the future. 

The revolution that Airbnb started in the hospitality industry gave birth to another one. 

No longer a mere luxury, Airbnb analytics has proven itself to be a necessity in short-term rental investing. 

You no longer have to go high and low to know your next Airbnb city. Armed with precise Airbnb data, we’ll uncover the cities that promise unparalleled returns. Get ready for an exhilarating journey into the heart of strategic Airbnb investing!

What to Look for in an Airbnb Location?

Knowing the best places for Airbnb is important to maximize ROI. In fact, location can either make or break your investment.  Believe it or not, the best Airbnb cities share one or a few things. So, here’s what you have to look out for.

1. High Tourist Traffic

In general, short-term rentals are the best alternative to expensive hotels.  So, tourism should be the number one consideration when starting an Airbnb. The most profitable Airbnb locations are close to tourist attractions such as beaches, mountains, historical sites, and national parks. Urban business districts are underrated Airbnb hotspots. Bustling cities with financial centers are often overlooked as top Airbnb locations. 

All these sites should be accessible via reliable public transportation.  Consider that your guests are only in town for a very short time. And nobody wants to spend their precious time shuttling back and forth between tourist sites. 

2. Airbnb Metrics

Airbnb KPIs are essential for any hosts, investors, and property managers. In fact, you can easily identify the Best Airbnb cities just by looking at the KPIs. So, take note of the following:

• Airbnb Occupancy Rate – Guage the success of the market by calculating the ratio of the total booked nights to the total available nights of all listed properties.
• Average Daily Rate – This is the daily average amount that hosts can earn in a market. You can compute this by dividing the total booking revenue by the total number of nights booked for all listed properties. 
• Revenue Per Available Listings – RevPAL measures the profitability of individual short-term rental properties. It can assess the overall health of an Airbnb market, going beyond a mere snapshot of individual listings.
• Airbnb Average Length of Stay – This metric refers to the average number of nights that have been booked by individual guests. This can be calculated by dividing the total nights booked by the total number of individual guest bookings.

3. Airbnb Rules and Regulations

Navigate the path to success with a clear understanding of local short-term rental rules and regulations in your preferred area. Each city has its unique set of guidelines, and some locations enforce stringent measures in compliance with local laws. You should always prioritize compliance to safeguard your investment and foster positive relationships with the local community.

Methodology

Finding profitable locations for short-term rentals can be quite a challenge as there are many aspects that investors should consider. Having said that, it’s crucial to conduct thorough market research considering factors like high-demand areas, affordability, and what type of competitors you will have around you. Additionally, it’s essential to understand local regulations and tax implications in the area where you want to host Airbnb guests. 

To pinpoint the best locations for Airbnb listings, we considered the market proximity to tourist attractions, its popularity as a travel destination, its infrastructure and accessibility, and of course, the area’s potential revenue, median occupancy rates, and seasonality. For the last few metrics, we relied on the Airbtics Dashboard to get reliable insights into the different markets and choose the best areas that can generate a good cash-on-cash return. 

Thanks to this, we could come up with the 10 best cities for STR listings in countries where Airbnb is considered a major economic force: 

The Best Places for Airbnb in 2024

United States