The short-term property rental business is booming in the US. Tourists prefer a cozy homely atmosphere to standard hotels and book rooms and houses with Airbnb Hosts. Therefore, to start your vacation rental business in the United States, you should study the market in detail and analyze your potential audience and competitors.
But the first step is to choose a good location. Some cities in the US are a real treasure for property owners and bring them a sizable stable income.
Top Cities to Invest in Airbnb in the US
Almost every American city has hotels and guest houses. But if you want to make a good investment, grow your business, and get high and stable profits rapidly, you should be interested in buying a house in one of the five cities we will write about below. When evaluating them, we took into account the following factors:
- Occupancy Rate (OR). It shows what percentage of real estate is booked on average during the year.
- Average Daily Rate (ADR). It will help you regulate the price of your apartment or house.
- Revenue. This metric will tell you how long it will take you to cover your start-up costs.
- Active Rentals. You will know how high the competition is in the city.
All this information will help you develop a long-term business strategy for your lucrative rental business to flourish. You can find more details about Airbnb management here – https://masterhost.ca/airbnb-management-new-york/.
Long Beach, New York
Long Beach combines all the charms of civilization and stunning nature. Clean, beautiful beaches, breathtaking nature, and proximity to the metropolis (New York is very close) make Long Beach a unique place. It is a place for family holidays, parties, cozy gatherings, and incendiary entertainment. A US tourist diamond can be a springboard for your business.
- Average Daily Rate (ADR): $217
- Occupancy Rate(OR): 79%
- Revenue: $ 3,718
- Active Rentals: 1,140
Most often, houses with 1 or 2 bedrooms are rented here. Most properties have a kitchen, air conditioning, parking, and internet. Homes with a pool are rare, so this can become your feature. Having a hot tub will also set you apart from your competitors.
Manhattan Island is a legend in American tourism, where millions of people flock every year from the United States, other countries, and even continents.
Here is the world-famous Empire State Building, Wall Street (have you watched that famous film with DiCaprio?). People come here to see a play in Broadway theaters, walk in Central Park and visit museums on Fifth Avenue.
In addition to urban sites, there is also a beautiful coastline with prestigious restaurants and bars. That is why the Airbnb business here is developing at a cosmic pace. The competition here is enormous, but if you can offer something exciting and unique to your guests, you will earn a significant steady income. Your success as an Airbnb entrepreneur is inevitable.
- ADR: $418
- OR: 68%
- Revenue: $4,382
- Active Rentals: 196
There aren’t a lot of properties here (which means less competition), but most of the properties are high-end luxury apartments. Houses with three bedrooms, kitchens, and parking are trendy.
Have you watched Baywatch? If yes, then you have an idea about this popular beautiful town on the Pacific coast. Many American stars like to come here for vacation, so the cost of renting a house here is incredibly high. But you will have to offer your guests something extraordinary because they are used to luxury apartments and are very demanding.
- ADR: $887
- OR: 69%
- Revenue: $12,850
- Active Rentals: 668
Despite the small number of properties for short-term rental, there is a wide variety of offers. Small houses with one bedroom and large cottages with 3,4,5 bedrooms are in demand. Almost all houses have air conditioning, parking, and a kitchen.
Key West, Florida
This resort town is the southernmost point in the United States. The tropical climate and azure beaches attract tourists from all over the country, so building a profitable rental business here is a good idea. There are also cultural monuments here – the house of Ernst Hemingway, the Audubon Museum, the shipwreck museum, etc.
- ADR: $475
- OR: 71%
- Revenue: $7,696
- Active Rentals: 2,140
Most properties for rent in Key West are two-bedroom homes. Pools are more common here – in 39% of houses.
Northport, New York
This magical little town is located near New York, in Suffolk County. This picturesque place with many authentic restaurants and markets is ideal for a romantic getaway and family vacation. Many New Yorkers come here for the weekend, so your business here will be prosperous and profitable.
- Average Daily Rate: $372
- Occupancy Rate: 61%
- Revenue: $3,334
- Active Rentals: 35
Small cozy houses with 1 or 2 bedrooms are in demand in this little paradise. Pools and jacuzzis are rare here (18% and 15%), but parking is available in 72% of houses.
The US real estate rental area offers many opportunities for aspiring Airbnb entrepreneurs. There are many great locations for starting a short-term rental business, but some cities are tourist gems. If you make a good purchase and buy a house there, your own business will develop, flourish and bring a high stable income. The main thing is to maintain high standards of hospitality, give customers hospitality and genuine friendliness, and improve your Airbnb Host rank.