3 Best American Cities For Airbnb Investments
While major cities like San Francisco and New York City are often in the news when it comes to Airbnb rentals, they’re not the best normost profitable when it comes to property investment potential. While in some cities, profit is driven by location, it is not so unpretentious in others. If you’re looking to invest, here are the three best American cities for Airbnb property investments.
What Drives Airbnb Pricing Models?
Supply and demand have much to do with pricing models. In areas where there is very little competition from the lodging industry, Airbnb real estate property owners have more leeway with how much they can charge since there is a lack of rivalry. In areas where there are lots of accommodations, Airbnb property providers must compete and deliver comparative rates.
Airbnb investment marketing analytics help investors findthe best areas based on property signals such as annual revenue, performance, and cost factors,so you can identify the most advantageous area codes that have a steadier economic presence rather than those that fluctuate seasonally. Gathering this type of data helps identify the most lucrative Airbnb property for sale.
3 Best Cities In 2019 For Airbnb
Becauset his purchase will solely be for a short-term vacation rental property, it’salso important to weigh cost and profit potential before deciding on theperfect Airbnb investment. How will you manage your property? What will you spend on guest accommodations? How does the location of the property factor into costs like home insurance, maintenance, repairs, and taxes?
1. Savannah, Georgia
Savannah is immersedin history, and it has an art community that attracts people from all around the globe. The tourism industry is also year-round, so you will have a steady income stream. The average home value is $230,000 with home values rising 5.2%this last year. Median rental prices are $1495, so there is a potential for Airbnb profit. The marketplace is also thriving as Savannah offers a blend of activities that attract visitors. With a median Airbnb income of $3,350, you can expect to make about $40.000 yearly.
2. Palm Springs, California
Home to festivals like Coachella, this city is popular with a diverse group of travelers. Not only can they enjoy a sunny getaway adventure, but Palm Springs property ownerswho market through Airbnb also make enough profit during just a few of these events to cover annual costs and still bank a nice profit. Even though this California city has a strict vacation rental market because of higher registration certification costs, the profit potential for an Airbnb property rental in this booming city tops $63,000 per year.
3. Nashville, TN
Nashville has always had a vibrant tourism industry because of its bustling country music scene, scenic views, and visitor attractions, so it fits in well with Airbnb investors because the market is ripe. The property value average in Nashville is$325,000, but a well-managed property can earn real estate owners more than $60,000 in profit annually.
When looking for Airbnb real estate property to invest, begin your search in one of these three profitable American cities. You’ll know when you find the right investment property to buy.