Top 10 Most Profitable Airbnb Cities in the USA: Summer 2023
Looking for profitable areas? Check out the trending top 10 most profitable Airbnb cities in the USA released by Airbnb this summer 2023!
If you are looking for the best city to invest in the USA this summer season, continue reading! In this article, we’ll feature the top 10 most profitable Airbnb cities in the USA along with important key metrics including annual revenue, occupancy rates, average daily rates (ADRs), domestic and international travel origins, and so much more!
Airbnb’s Trending Summer Destinations
Have you heard the news? Airbnb’s summer travel trend indicated all the profitable cities that Airbnb guests booked last first quarter for summer 2023! According to their recently released article, Airbnb guests have already booked in 72,000 different cities and towns for the entire summertime.
Since the pandemic started, remote workers from all over the world have had immense flexibility to take their work with them while they are at their preferred travel destination. This is why Airbnb occupancy rates in digital nomad cities have been popular since remote workers have rapidly increased over time!
What Makes a Good Airbnb Location?
Before starting an Airbnb business, knowing the best place to own an Airbnb is extremely important for investors to maximize their investments. So, below are the following guidelines:
1. NEARBY TOURIST ATTRACTIONS
It’s a known fact that the majority of guest-preferred Airbnb locations are near tourist attractions such as beaches, mountains, historical buildings, or national parks. Because who would want to enjoy a vacation where nearby tourist attractions aren’t accessible, right? Generally, guests would also want a location where public transportation is accessible.
2. AIRBNB RULES & REGULATIONS
Checking the local rules and restrictions in your preferred area is also a top consideration before you start investing in a property. There are various Airbnb rules by city and some areas might have strict implementations or certain restrictions depending on their respective local laws.
3. AIRBNB KEY METRICS
The key metrics of Airbnb are essential for hosts, managers, and property investors to keep track of their overall finances and anticipate future expenses. Here are some of the following Airbnb key metrics to take note of:
- Occupancy Rate – This is the total number of days that a property is booked by guests. This is calculated by dividing the number of booked nights by the number of available nights.
- Net Operating Income – This refers to the total revenue earned by a property after subtracting the operating expenses. This can be calculated by deducting the gross income from operating expenses.
- Average Daily Rate (ADR) – This represents the daily revenue that a rented property can make. It can be calculated by dividing the total booking revenue by the total number of nights booked.
- Revenue per Available Room (RevPAR) – This refers to the total amount of revenue a single room can make on your property. RevPAR is an essential metric that allows you to have an overview of your property’s performance and anticipate revenue increases. You can calculate RevPAR by multiplying your average daily rate by the occupancy rate.
- Average Length of Stay (ALOS) – This metric refers to the average number of nights that have been booked by an individual guest. This can be calculated by dividing the number of nights booked by the total number of individual guest bookings.
Do I need to Own a Property for Airbnb?
Some investors have a sufficient budget to purchase properties for passive income from Airbnb. Luckily, there’s a greater alternative for those who don’t!
Here’s why: You don’t need a lot of money to start it and you don’t need to own any property! The good news is that there are numerous landlords who allow their properties for rental arbitrage so it would be easy to find rental arbitrage properties.
Top 10 Most Profitable Cities for Airbnb
The occupancy rate of your target area is one of the most important factors to consider when starting an Airbnb business. The more Airbnb bookings you make, the higher your income! This is why the best places for Airbnb investment are cities with ranking occupancy rates.
According to Airbnb’s recent article about summer travel trends, here are the top 10 most profitable cities for Airbnb in the US:
|Airbnb Location||Annual Revenue||Occupancy Rate||Average Daily Rate|
|Laconia, New Hampshire||$53,281||68%||$204|
|Panama City, Florida||$32,019||57%||$141|
|Surf City, New Jersey||$162,376||74%||$490|
|Bolivar Peninsula, Texas||$49,012||44%||$315|
|Kansas City, Missouri||$17,993||40%||$117|
|North Topsail Beach, North Carolina||$38,776||52%||$233|
- Annual Revenue: $29,115
- Occupancy Rate: 48%
- Average Daily Rate: $154
- Annual Revenue: $53,281
- Occupancy Rate: 68%
- Average Daily Rate: $204
- Annual Revenue: $31,100
- Occupancy Rate: 57%
- Average Daily Rate: $144
- Annual Revenue: $18,639
- Occupancy Rate: 42%
- Average Daily Rate: $111
- Annual Revenue: $32,019
- Occupancy Rate: 57%
- Average Daily Rate: $141
- Annual Revenue: $21,569
- Occupancy Rate: 56%
- Average Daily Rate: $115
- Annual Revenue: $162,376
- Occupancy Rate: 74%
- Average Daily Rate: $490
- Annual Revenue: $49,012
- Occupancy Rate: 44%
- Average Daily Rate: $315
- Annual Revenue: $17,993
- Occupancy Rate: 40%
- Average Daily Rate: $117
- Annual Revenue: $38,776
- Occupancy Rate: 52%
- Average Daily Rate: $233
Source: Airbtics Dashboard
How to Find the Best Areas to Invest in Short-Term Rentals?
Use only the best analytics tools to find profitable markets to invest in Airbnb. As a tip, we recommend you focus on those that can provide dynamic data, which not all platforms have. In the past, it was quite a challenge to find apps that offer this type of dataset, but sites like Airbtics have taken the helm to provide this resourceful service to investors!
Imagine exploring a city while getting useful dynamic data that can make things easier for you. It’s possible with Airbtics Dashboard since you can easily collect important information such as the average revenue, occupancy rates, nightly rates, and seasonality, among others.
Now, you will have a better view of your target market. Go ahead and play around with the filters and find the results that fit your needs. You can use filters to find out what type of property offers the most attractive profit in your preferred area. The best part of using dynamic data is that by moving and zooming in and out of your map, the data will also update accordingly!
This process can now be repeated until you decide what type of property would be a good investment in your target city or neighborhood. Compare data between different property types and you find out the option that suits you the best!
Now that you have an overview of the most profitable Airbnb cities this summer, don’t miss out on other investment opportunities! As we live in a digital era, an accurate Airbnb calculator will 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 data 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.
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