AirDNA’s Best Places to Invest in the Next 5 Years

[Tom Dieringer]

Do you trust AirDNA’s Best Places to Invest in the Next 5 Years report from June 2024?

Is it thoughtful and timely market info or just them propping up overplayed markets in some way to their own benefit?

Years ago, I bought into the Motley Fool stock advisory service only to get worse returns than I had been doing on my own (not that mine were great.) Don’t want to emulate that mistake in real estate by allowing myself to become too influenced by companies that are simply good marketing their own services but not great market prognosticators. To me, their methodology seems reasonable but incomplete.  But if not there, where is there better analysis?   Thanks.

[Evan Polaski]

@Tom Dieringer, I am a firm believer that STRs are more of a marketing play than anything else.  So that being said, and since it seems like you are new to this space.  I don't think there is anything wrong with these lists.  But, simply because you buy a property in Logan, OH or Columbus, GA does not mean you will be successful.  

I recommend you search these places and see how many listings show up.  I live a couple hours from Logan, and have been to Hocking Hills a few times.  I can tell you there are some very successful STRs there https://www.dunlaphollow.com/cave and https://thecliffs.house/. But, as you can see, these places are not successful because they are in Logan, OH (or very nearby).  They are successful because they are unique and well marketed on Instagram (organic following with some influencer stays, too).  I have stayed at the Bungalows at the Cliffs twice.  They are immaculately clean, well stocked, and extremely responsive.  

My point being, location is not the only driver of success.  As such, I would say, I would not put too much credence in the AirDNA list.  It is a catch-22, as you note.  Assuming the data is accurate, it could give you a leg up, but the counter is that prices in those areas are higher.  And generally, if you are a great operator and marketer, you can create a strong property just about anywhere with STRs.  If you are a lazy operator, I don't think the fact that you bought in one of these 5 markets will really help you.