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!