Location is one of the biggest success factors when investing in an Airbnb or short-term rental. Luckily at Beyond, we can use our data to identify the top places to invest in a short-term rental (STR) in 2022.
In part two of this blog series (read part one here), we’ll break down the rest of the top towns to purchase an STR. These locales are ranked based on each market’s rise in “Revenue per Available Night” (RevPAN) from 2021 to 2022. RevPAN allows us to make an accurate comparison from month to month by measuring revenue per night based on available nights. An STR, for example, might earn $10,000 one month and $20,000 the next, but if the available nights to rent the STR also doubled, those months would reflect the same RevPAN. In other words, we will identify those places with the most potential profit from an STR investment. For a more detailed explanation of RevPAN, check out our breakdown blog post. All prices and percentages quoted below come from Beyond’s database and are for average nightly stays in a 2-bedroom rental.
9. Los Angeles
Endless opportunities and neighborhoods characterize this sprawl, from hip neighborhoods like Downton LA and West Hollywood to the ritzy Beverly Hills to the Westside beachside towns like Santa Monica and more. Within this megapolis is some of the best food, museums, sports venues, ocean sports, adventure sports, entertainment, and music in the world.
A leap in occupancy rates jumped from $50 to an incredible $146 per available night, with a 52% rise in RevPAN.
With 9.5 million people spreading out from Lake Michigan’s southwest shore, Chicago is the country’s third-largest metro area. Similar to its Western cousin, the windy city sports a stunning coastline with miles of public green parks astride cool blue freshwater. Moving inland lie multitudes of savory food, and almost endless entertainment across its distinct neighborhoods. World-renowned museums, waterfront sports venues, and internationally-known landmarks are just a few reasons why travelers visit Chicago.
With its center-of-the-continent geography and vibrant cultural panoply, Chicago has maintained its surge as one of the country’s hottest housing markets and STR owners are reaping the benefits. The city made a 52% RevPAN leap over the last year, with the average price per available night going up from $70 to $106.
Bozeman is one of the state’s fastest-growing towns. The heart of Montana’s ski country is bordered by mountain peaks and sits just two hours north of two main entrances into Yellowstone National Park. The city has been called “the most livable place” for its simultaneous access to urban and outdoor pursuits.
Other people have already discovered this magic and real estate prices are rising. In turn, a sharp STR investment in this west Montana town can be quite lucrative. RevPAN in 2021 is an expected $148 per night, rising 53%.
6. Temecula Valley
Temecula Valley is a spirited destination inspiring wine lovers, small-town retreaters, and outdoor recreators. Like any good wine region, the area bubbles with small-town vibes and an atmosphere to match: an ever-evolving culinary scene, a lively craftsperson community, and Western character.
Perfect for a weekend trip from San Diego or L.A., the Temecula Valley hosts all kinds of national and regional visitors. Its popularity is rising and the STR scene is growing in tandem: RevPAN surged 53% up to $128 per night.
Known as the hometown of country music and the birthplace of bluegrass, Nashville attracts visitors year round to listen to enjoy the music scene. And with beautiful outdoor activities, Nashville has something for everyone.
Any way you cut it, Music City USA is a grand place for your STR to stay. At $125 per lettable night, Nashville’s 53% jump in RevPAN suggests the land’s allure to keep growing.
4. Santa Fe
Santa Fe offers a restorative air, hearty eats, and an excellent outdoor climate under these burnt orange and turquoise skies. This city also embodies Hispanic, Anglo, and Native American cultures that are apparent in Santa Fe’s architecture, art, food, and fun. Elevated at 7,000 feet at the seat of the Sangre de Cristo mountains, Santa Fe is close enough to the stars for 320 annual sunny days and year-round recreation. Hike and bike any time and get into seasonal sports like skiing, fly-fishing, and rafting.
This Southwest gem is accessible by a number of large towns within a few hundred miles, both in Mexico and the United States. Santa Fe is a popular, still growing spot, as indicated by its 55% spring to $168 RevPAN.
3. New Orleans
There is no other town in the U.S. like New Orleans. In and outside of Mardi Gras, more merrymakers come here than most American places — laced with rum punches and packed with revelers digging into Cajun gumbo and po’boy baguettes. A town that’s inseparable from its iconic cocktails, cooking, voodoo, and all that jazz, New Orleans is much more than its famous French Quarter.
As one of the US’s great bucket-list cities, it’s a great place to invest in an STR. It’s not hard to find an empty room in New Orleans, but with restrictions easing, year-end occupancy rose by 51%, leading to 56% jump in RevPAN.
Dripping with Spanish moss and soft Southern accents, Savannah first shined from its 18th century Historic District. More than 20 cobblestoned blocks are covered by historic mansions and churches, fronted by manicured gardens, and separated by parks shaded under towering live oaks, each of its 22 historic squares showing a distinct personality. These oaks spread out to open lanes over powdery gravels that lead out to the open country: rivers and parks packed with opportunities. Kayak the Savannah River, watch for bottlenose dolphins, egrets, herons, and other water creatures.
Quiet Savannah is hot for STR investors. Leaps in occupancy and price per night along with more people traveling shot RevPAN up to $141, an incredible 58% surge.
With warm beaches, Cuban eateries, A-list stars, and swanky hotels, Miami has got anything and everything people are looking for on vacation. Outside of South Beach and its legendary luxury, multiple cultures contribute art, music, and food that make up a diverse city. And the outdoor activities include golf courses, swamp tours, snorkeling, and more.
Miami STRs saw occupancy and nightly prices rise, with a huge 71% increase in RevPAN.
Whether you are making your first or your 100th short-term rental investment, Beyond is here to help. From dynamic pricing to market insights and guidance to a first-class vacation rental website builder, Beyond is a complete revenue management solution for property managers to get, grow, and keep revenue. Start your free trial today.