While many hotels and travel-related
businesses saw significant declines due to the pandemic with the
reduction of both leisure and business travelers, some real
estate-related businesses experienced significant growth over the
last two years. Short term rentals benefited and showed their
resilience through adversity. Airbnb recorded its strongest quarter
in 2021 with many travelers reporting that they preferred staying at
an Airbnb because it allowed them to maintain their own space away
from strangers while also being able to have ample room for their
family members when they travel.
We
have seen the investment community take notice and many have begun to
take advantage of the growth in this space. Through my own experience
as a Loan Consultant, I am seeing an influx of investors purchasing
properties with the intention to use them as short-term rental
properties.
The
chart below (published by news.airbnb.com) outlines some profitable
areas where Airbnb hosts with only one listing have made significant
returns on their investment:
“To
further inspire potential Hosts, we’ve identified the top 10 most
profitable areas for new Airbnb Hosts with only one listing in the US
for the first half of 2021:
- 1. Atlanta: $8.5 million
- 2. South Florida Gulf Coast:$8 million
- 3. Phoenix: $6.3
million
- 4. Los Angeles:
$6.2
million
-
5. North
Carolina Coast: $4
million
- 6. Smoky
Mountains: $3.9
million
- 7. Poconos: $3.5
million
- 8. Houston: $3.3
million
- 9. Catskills and
Hudson Valley: $3.1
million
- 10. Denver: $2.9
million“
American
consumers have demonstrated an increased consciousness of personal
space. Airbnb gives people the option to travel safely and feel
comfortable by not having to cross paths with strangers such as you
would in traditional hotel environments. Well-placed Airbnb
properties can often generate far more monthly income than their
long-term rental counterparts and can be extremely versatile. By
identifying markets that are on the rise, investors can capitalize on
the opportunity by meeting the demand for short term rentals in many
different locations throughout the country, regardless of whether
hotels are available in the area or not. We are seeing many investors
find success with short term rental ownership.
Looking
ahead, do you see this trend slowing down as
pandemic restrictions ease or do you see this as a trend that will continue to accelerate?
Do
you think business travelers will gravitate toward Airbnb-style
options when business travel picks up again?
Do you live near any of
the market areas in the top 10 list? If so, have you seen an increase in STR activity around you?
Have you considered investing in
Short Term Rentals?
What obstacles have prevented you from acquiring
an Airbnb property to invest in?
