Best Places to Buy an Airbnb – Purchasing a property to rent out on Airbnb can be extremely lucrative if you find the right location. The key is buying in an area with strong tourism and rental demand. This comprehensive guide covers the top places to consider when investing in an Airbnb.
Vibrant Tourist Destinations – Best Places to Buy an Airbnb
Popular tourist cities almost guarantee solid booking rates. Focus on destinations with name recognition that attract millions of visitors each year.
- New York City – With its renowned sights and endless entertainment options, New York is a top destination for domestic and international travelers alike. Airbnbs here can charge premium rates all year. Consider Manhattan or trendy Brooklyn neighborhoods.
- Los Angeles – LA is a major hub for business and leisure. Neighborhoods like Santa Monica and Venice Beach put you close to attractions. Proximity to studios appeals to entertainment industry travelers.
- Las Vegas – Sin City offers world-class hotels, but Airbnb dominates the home rental market. Near the Strip is best, but downtown and the Arts District work too. Beware of regulations on short-term rentals.
- Miami – With its beaches, nightlife and cultural vibrance, Miami attracts over 15 million visitors annually. Look for units near South Beach or in Brickell for nonstop bookings.
Up-and-Coming Cities – Best Places to Buy an Airbnb
Get ahead of the curve by buying in markets on the verge of an Airbnb boom:
- Nashville – This country music hotspot has seen massive population growth, with over 15 million tourists in 2018. The city center and gentrifying East Nashville both make good Airbnb locations.
- Atlanta – Atlanta welcomed over 51 million visitors last year. Purchase near downtown sights like the Georgia Aquarium or in the hip Westside Design District.
- Boise – Idaho’s capital is now one of the fastest growing cities in America. List near the Boise River Greenbelt, Idaho Botanical Garden or Hyde Park Historic District.
Accessible Areas – Best Places to Buy an Airbnb
Airbnbs in areas with convenient logistical access enjoy higher occupancy and rates:
- Near major airports – Properties near LAX, JFK and other hubs put guests close to their departure point.
- By public transportation – Locations off the Las Vegas Monorail or near Chicago’s L rail attract car-free travelers.
- Near convention centers – Look at host cities for major conferences and events like Austin during SXSW.
- In college towns – Rentals aimed at visiting parents and alumni, like near University of Michigan.
- Close to entertainment – Proximity to things like major sports stadiums, music venues and amusement parks.
Analyze Market Data – Best Places to Buy an Airbnb
Carefully assess supply, demand and profitability metrics before buying:
- Use Airbnb’s search tools to view historical occupancy rates, nightly prices and seasonal swings.
- Factor in average cleaning and maintenance costs to determine cash flow potential.
- Look for at least 60% average occupancy at over $100/night rates to maximize income.
- Monitor new listings and Airbnb restrictions that could impact future supply.
By thoroughly evaluating top locations using these criteria, you can make a well-informed Airbnb real estate investment with strong profit potential.
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