09 Feb, 2022, 10:00 ET
DENVER, Feb. 9, 2022 /PRNewswire/ -- AirDNA released its annual report which ranks the Best Places to Invest in Vacation Rentals, providing a playbook for the most profitable investments within a thriving industry which generated an estimated $113 billion in annual revenues in 2021. This marked the best year on record for global short-term rental performance, up 5.3% since 2019.
"Investors need a clear framework for finding a great opportunity, and that's what this report provides, whether the key to success is a particular neighborhood, bedroom count or a stand-out amenity," commented Jamie Lane, AirDNA VP of Research. "Staying informed on trends as the travel industry begins to normalize will allow investors to make the right decisions and optimize their revenues, in 2022 and beyond."
Using the most extensive and granular dataset in the industry to consider 265 markets in the United States, AirDNA's report ranks the top 25 based on its proprietary AirDNA Investor Score to unveil high-performing, growing markets that provide exceptional returns. The score is based on a detailed analysis of multiple metrics, grouped into three key pillars:
- Rental demand taking into account occupancy and supply increases
- Revenue growth over the last twelve months compared to the twelve prior
- Investability score showing yield after property purchase and operating costs
Small and mid-sized cities are leading the investment opportunities with a 55% increase in their revenue potential. Some firm favorites from last year remain in the top 25, such as popular Florida beach destinations and Californian nature escapes, while this year's top 10 is shaken up by fly-to destinations, as guests are eager to visit Hawaii, Alaska and everywhere in between.
AirDNA's Top 10 Places to Invest in 2022:
- Maui, HI
- Kenai Peninsula, AK
- Chattanooga, TN
- Gulfport/Biloxi, MS
- Slidell, LA
- Crystal River, FL
- Charleston, SC
- Joshua Tree, CA
- Galena, IL
- Buffalo, NY
To see the full list of the 25 best places to invest in short-term rentals properties including key insights on each location, you can read the full report here.
To investigate further the real potential of any opportunity, Investors can get a detailed report on any address they're looking to invest at by using AirDNA's Rentalizer tool. "We want to give investors, sellers and brokers full control of their decision by revealing the true value of the property as a vacation rental," said AirDNA CEO Scott Shatford, "Our new upgrades to the Rentalizer allow users to see the vacation rental value appreciation over time and track the history of the home's revenue estimate, providing invaluable insights on where to buy."
Find out where to invest in 2022
AirDNA helps hosts, property managers, and investors succeed in the short-term vacation rental market by turning rental data into actionable analytics. The Denver-based company has tracked the daily performance of 10 million vacation rentals in 120,000 global markets since 2014 to provide real-time market insights. Their range of online and exportable reports offer a solution for everyone in the industry to analyze trends, price rentals, identify new investment opportunities, and benchmark performance.
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