Discover the most profitable US Airbnb markets around where you live.
Comprehensive Exploration of Short-term rental & Real Estate Trends in the Top US Cities for Prime Airbnb Investments! Find the best places to own and invest an Airbnb.
Key Cities in the US for Airbnb Investment 2023
The United States offers a multitude of diverse experiences and rich opportunities that attract travelers all over the globe. And because of this, it has enhanced the profitability of the hospitality industry. This trend has strengthened the local real estate investment opportunities, now extending to short-term rentals. As a result, Airbnb investors have found a lucrative source of passive income.
It needs to be said that success is not easy in the short-term rental game. Location remains a huge factor in the Airbnb business. Therefore, the smartest investors can start by locating the best places to Airbnb with the power of real-time Airbnb data.
Here is a comprehensive vacation rental data of the key cities in the US for prime Airbnb Investments. Explore the Airbnb statistics by city, Airbnb occupancy rate, and Airbnb cap rate of the best places to own an Airbnb. We provide free Airbnb statistics and real estate analysis below.
- All data is 5 years average YoY change.
| City name | Population | Property Price | Income Level | Google Travel Related Search | Crime | Unemployment |
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Methodology for Airbnb Statistics in the US
With a comprehensive and meticulous analysis, our team has surveyed hundreds of Airbnb cities across the United States. By using the cutting-edge capabilities of the Airbtics’ Dashboard, we have curated an extensive data collection of revenue in these cities within the past 12 months. After the initial data gathering, we searched each market’s prevailing median property price. This allowed us to compare the income-generating potential of a market relative to its property price to calculate the gross rental yield. And out of hundreds of cities, we have tabulated the 50 best cities for Airbnb investment in 2023 in the United States. And since we understand that short-term rental properties are also long-term investments, we have included data from reputable sources to show various market signals that can affect property appreciation. A market that has an increase tendency in population, income, and property price, and a decrease tendency in crime rate often grow faster. In the next 30 years, these tendencies could make a huge difference.How do I know if Airbnb is profitable in my area?
The following vacation rental data are essential for evaluating the financial performance and potential of an Airbnb investment. By analyzing these metrics, you can make informed decisions that will lead you to the most profitable Airbnb market. Remember that these Airbnb statistics should be considered alongside other factors such as location, local regulations, and property management costs to make a well-rounded investment decision.Total Number of Active Airbnb Listings in the US
This refers to the total count of properties that are currently listed and available for rent on Airbnb. This informs you of the overall supply of short-term rentals as well as the level of competition in a given market.Airbnb Occupancy Rate
This is the percentage of time that an Airbnb is occupied by guests. It is calculated by dividing the number of nights a property is booked by the total number of nights the property is available for booking in a specific period. The higher the occupancy rate the higher demand on the property. Therefore, it generates revenue more often.Airbnb Annual Revenue
This refers to the total amount of income a property can generate in a year, based on its occupancy rate and nightly rental rate. Potential annual revenue helps you understand the income potential of the property before accounting for expenses.Median Property Price
Median property price is used to understand the general price range of properties in a specific market. It is the price right in the middle if we line up the prices of properties from the cheapest to the most expensive. It represents a point where half the properties are priced higher and half are priced lower.Total Number of Active Airbnb Listings in the US
This refers to the total count of properties that are currently listed and available for rent on Airbnb. This informs you of the overall supply of short-term rentals as well as the level of competition in a given market.
Airbnb Occupancy Rate
This is the percentage of time that an Airbnb is occupied by guests. It is calculated by dividing the number of nights a property is booked by the total number of nights the property is available for booking in a specific period. The higher the occupancy rate the higher demand on the property. Therefore, it generates revenue more often.
What is a Good Airbnb Occupancy Rate?
The US-wide average Airbnb occupancy rate is 48%. Using this as a benchmark, anything close or higher to this rate can be considered good. However, not all markets can live up to this since different locations, as well as property types, may have varying standards for occupancy rates.
In the table above, we have listed the Airbnb occupancy rates of these key cities in the US to give you an idea of how each city is performing based on their average occupancy rates 2023 and the YoY growth change of occupancy rates 2022/2023.
What is a Good Cap Rate in the US for Real Estate?
The Airbnb cap rate, or capitalization rate, measures how quickly your investment could break even. This is also used as a tool to compare multiple real estate investment options. To get it, you will need to divide the property’s net income (earnings from renting after deducting costs like taxes and upkeep) by its current market price.
Aim for a property with a cap rate between 5-10%. A higher cap rate in this spectrum suggests the potential to earn a substantial amount relative to your investment, while a lower cap rate indicates more stable yet lesser earnings compared to your investment. Nonetheless, a cap rate surpassing 10% might signal potential risks such as uncertain income prospects.
Best STR-friendly cities in the US
We have developed a point system to gauge the ease of doing STR in key US cities. We have assigned points based on zoning (1), hosting day cap (1), and tax levied by the city depending on the percentage [1 for below 5%, 2 for 6-10%, and 3 for 11% and beyond].
By creating a well-structured point system that considers these factors, investors can evaluate different locations for potential short-term rental investments.
As of August 2023, there are the top 11 STR-friendly cities in the US with lenient short-term rental regulations. Although having lenient Airbnb rules doesn’t assure that they are profitable cities, Airbnb investors can consider this list to narrow down their search to where they should invest.
What are the Risks of Investing in Airbnb?
While it can be substantial, Airbnb income may not be as predictable as a stable monthly rate from long-term rentals. This is because of the seasonality that may come in the territory due to short-term rental trends. This means that there might be periods of high demand followed by slower periods, even in popular tourist destinations.
Since travel may also be seen as a luxury, hospitality is among the first industries to be affected during the economic downturn. This results in negative effects on daily rates and occupancy levels, which can lower your revenue.
Short-term rental regulations can also be a risk. They are ever-changing and can vary depending on the jurisdiction. This may involve capping the number of days your property can be booked on Airbnb or putting a zoning restriction on where your property is located.
If Airbnb regulations in your city become too restrictive, this could lead to a decrease in potential bookings. This, again, would cause a decline in demand for short-term rentals. The ever-changing nature of Airbnb regulations in your chosen city can create uncertainty in your investment plans.
But while this is the case, Airbnb remains popular as a side hustle or full-time business due to a proven high return on investment. This drives the competition among hosts. And if your Airbnb market becomes saturated, it may become more challenging to attract guests and keep a high occupancy rate.
Where can I buy property in the US?
There are several online platforms where you can browse real estate property in the US. For instance, these include Redfin, Zillow, and Realtor.com. These platforms also allow you to schedule a tour of your dream property and even contact the agent assigned.
How to Get Airbnb Statistics in the US?
Check out this free sample report featuring short-term rental insights in the US. However, you may consider investing in a comprehensive US Short-Term Rental Report especially designed for real estate investors. Within the report, you’ll uncover invaluable insights to enhance your Airbnb investment search.
Deeper STR Insights. Broader Investment Opportunities.
Want to go deeper, broader, and faster? Supercharge your Airbnb Investment by accessing the most in-depth Airbnb & real estate insights with our exclusive STR report.
- Vital vacation rental data from 50 Markets – Airbnb Occupancy Rate, ADR, Revenue, and Listings! Access 2-year data from June 2021 to June 2023.
- Uncover 5-year real estate investability metrics for 50 markets including population, property prices, income levels, Google travel interest, crime, and unemployment trends 2017 - 2021)!
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Frequently Asked Questions
How to Invest in Airbnb?
Research Airbnb-friendly locations and consider factors like demand, local regulations, and property expenses. You may actually start with the free Airbnb data above to get vital information on the key cities in the US to Airbnb.
How to find Airbnb Occupancy Rates?
You can access this data in Airbtics’ Insights tab along with the revenue potential and ADR. This percentage shows how often a listing is booked, provided with historical data, seasonality, MoM, and YoY change.
How to calculate the ROI of my Airbnb Business?
Forget manual calculations. Calculate your revenue potential with a Free Airbnb Income Calculator. You’ll get the insights in just 5 seconds!
Where is the best place to own an Airbnb?
The best place to have an Airbnb depends on factors like location, demand, local regulations, and personal preferences. To help you spot the best place to Airbnb, refer to the table above where we provide real-time Airbnb data of the well-known cities in the US.
Want to explore Airbnb insights in other countries?
