Where Is Airbnb The Most Profitable

Ayvio Marketing

02 March 2020

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Where Is Airbnb The Most Profitable?

Achieving maximum profit on Airbnb is a little different than maximizing traditional rental income. With traditional rentals, you need to find a comparatively cheap place in a section of the country where there will always be a demand in which to live. People are continually moving to places like New York, Florida, Texas, and so on, and they will often pay a premium to live there. As such, landlords in these places tend to do reasonably well. These areas have robust economies that can support high rents.

 

Airbnb is different. With Airbnb, you want to find a unique blend of relatively inexpensive housing in a place where people love to vacation. Often, however, the fact that people want to vacation there tends to mean that people will both want to live there and buy Airbnb investment properties as well. Fortunately, there are a few cities in which Airbnb income rates tend to be very high relative to the cost of housing. If you’re looking for an investment property, consider one of these three cities.

 

San Diego, CA

Who doesn’t love the sunshine and beautiful climate of San Diego, CA? Situated two hours south of Los Angeles, San Diego is a premier spot for tourists, including those looking to get away from the hustle and bustle (and traffic!) of Los Angeles. Unlike LA, San Diego housing also tends to be a little more affordable. The average home price there is 20% less than in Los Angeles.

 

However, that doesn’t mean it is any less desirable of a tourist destination! With an average night cost of at least $226, San Diego residents find that their Airbnb units tend to be quite profitable!

Miami, FL

Another city with an abundance of sun, Miami, is a prime tourist destination for people all across the world. People come to Miami for the nightlife, the lifestyle, and the delicious food. Housing within the Miami area tends to be relatively cheap, with an average home costing just $360,000.

 

If you rent that home out with Airbnb, however, you can expect a whopping $240 in rent. If you’re lucky enough to rent it out at full occupancy for the month, you’d be looking at over $7,500 in revenue. The desirability of Miami as a vacation destination keeps Airbnb prices high, even though the housing market isn’t as expensive as many other major metro areas.

 

Chicago, IL

The windy city is another popular destination for tourists. It hasn’t had quite the same property appreciation that the rest of the country has. That doesn’t stop 58 million tourists from exploring the city, though!

 

Of course, these tourists need a place to stay, and Airbnb rentals in the Chicago area tend to fetch around $185 per night. The high rental prices, coupled with the comparatively low housing prices, make Chicago a fantastic place to invest.

 

Airbnbs Make Good Investments Almost Anywhere

Airbnbs make fantastic investments pretty much anywhere. Even though the cities of San Diego, Miami, and Chicago have some of the best ROIs, you can still do well renting in cities like New York, Los Angeles, Boston, San Jose, and San Francisco. Anywhere tourists want to go to is an excellent candidate.

 

Of course, Ayvio, a hospitality company, partners with people all across the US to transform their homes into epic experiences that maximize Airbnb income. If you’re interested in leveraging our expertise to list your home on Airbnb and similar sites, contact us today.

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