AirDNA, an online resource that tracks the performance data of Airbnb & Vrbo vacation rentals, has announced its’ list of the best places for real estate investors to acquire short-term rentals.
Columbus, Georgia, topped the list, with AirDNA citing “its affordable typical home value of $160,600, which pairs attractively with a strong 5% growth in RevPAR” [revenue per available room] and an “a robust rental demand, showcased by its occupancy rate of 59.5%.”
Ellsworth, Maine, ranked second with AirDNA praising a “robust occupancy rate of 72.8% complements its picturesque setting and quaint, historic downtown. While the initial investment is steep at $324,670, this is offset by a $244 RevPAR.”
Rounding out the top five localities were Logan, Ohio; Spring Hill, Florida; and Sneads Ferry, North Carolina. The full list is available on the AirDNA website.
“As we predicted, RevPAR died down in 2023 following the highs of 2021 and 2022,” said the company in announcing its rankings. “The year closed out with an average drop of 6.7%. According to AirDNA’s latest Outlook Report, though, declines should ease and RevPAR should grow slightly in 2024. This gives Airbnb hopefuls reason to consider entering (or re-entering) the best short-term rental markets.”
Yet AirDNA also warned, “Investing in the best STR markets might not be all smooth sailing, however … Forecasts for 2024 call for home prices to remain relatively stable, though local markets with supply and demand imbalances may be more unpredictable. On the brighter side, the Federal Reserve Board is likely done raising rates, and we now expect rates to start declining in 2024. This should be a welcome change after the U.S. experienced the highest interest rates in decades. With rates falling, the broad consensus is that home sales will rise in 2024. As properties become more affordable, both sellers and buyers will re-enter the housing market.”
Photo courtesy of the Columbus Consolidated Government’s Facebook page
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