The classic cliché about real estate investment holds true when looking for a vacation rental property: location, location, location. The profitability and income potential of your holiday rental business is highly dependent on the location where you purchase your investment property or launch your Airbnb rental arbitrage business. In addition, you need to ensure your rental is not in a region suffering from an oversupply of similar properties. So, how can you find the best locations in the United States to rent out your home short term?
Using Beyond's massive collection of vacation rental market data and analytics, we'll reveal the top eight growing markets in the United States in this post. In 2022, these regions saw an average occupancy rate of 71% and a RevPAN of $255. These areas are listed in increasing order, based on their projected 2022 RevPAN in their respective markets. All percentages and average nightly rates cited below are based on data from Beyond's database and apply to 2-bedroom apartments. Even though occupancy and RevPAN rates in these markets are excellent, you should still evaluate the average purchase price before making any investments unless you intend to engage in renting arbitrage.
2022 Average RevPAN: $423
2022 Average Occupancy: 80%
The first stop on our itinerary is Block Island, Rhode Island. Block Island may be one of the greatest areas to buy an investment property in 2022, with a $423 RevPAN and an amazing average occupancy rate of 80%.
Visitors seeking a respite from the stresses of modern life will find Block Island to be an ideal getaway. The island has beautiful beaches, spectacular views of the Atlantic Ocean, and many exciting attractions. Whether you're looking to go kayaking on the Great Salt Pond, explore Mohegan Bluffs, or just relax on Crescent Beach, Block Island has you covered.
2022 Average RevPAN in Maui: $348, and Kauai: $288
2022 Average Occupancy in Maui: 84%, and Kauai: 77%
The Hawaiian Islands are next on our itinerary. While the vacation rental markets on Maui and Kauai stood out due to their high occupancy rates and average RevPAN, most of the Hawaiian Islands are attractive options.
Visitors in search of a picture-perfect tropical escape will find it in Hawaii. Hawaii is one of the world's top tourist spots due to its many attractions, including its beautiful beaches, verdant woods, and exciting culture. Divers can swim with sea turtles off Waikiki Beach, and hikers can discover the many hidden waterfalls along Maui's Hana Highway. In this stunning archipelago, visitors may do anything from lounging on a beach all day to climbing a volcano.
2022 Average RevPAN: $281
2022 Average Occupancy: 59%
Nantucket, Massachusetts is a popular vacation spot because it offers visitors a chance to get away from the hustle and bustle of everyday life. This is a fantastic market in which to invest in a short-term rental property, thanks to its above-average occupancy rates and average RevPAN.
Nantucket is an island off the coast of Cape Cod that is famous for its natural beauty, abundance of wildlife, and rich history. Brant Point Lighthouse is only one of many that welcome guests, who can also tour the island's many whaling museums. You can go kayaking at Madaket Harbor or bicycling on miles of gorgeous trails if you're in the mood for some excitement. Nantucket is perfect for a variety of vacation styles, from a quiet weekend getaway to an exciting adventure.
2022 Average RevPAN: $277
2022 Average Occupancy: 69%
Santa Barbara is a wonderful destination for vacations and day trips alike. High occupancy rates and a healthy average RevPAN make this a fantastic market in which to purchase an Airbnb or investment property.
Santa Barbara is a city that truly has something for everyone, with its beautiful beaches, verdant mountains, and thriving culture. Tourists have the option of either walking around Stearns Wharf or taking a kayak tour of the harbor. Those in search of excitement can go mountain biking over miles of picturesque routes or hike up nearby Gaviota Peak.
2022 Average RevPAN: $229
2022 Average Occupancy: 63%
People from all over the world flock to Austin to take part in the city's thriving cultural scene and exciting array of outdoor pursuits. The city's high occupancy rates and average RevPAN of over $200 prompted us to add it to our list.
Austin has a vibrant downtown, a flourishing music scene, and countless opportunities for outdoor fun, so there's truly something for everyone there. The State Capitol and Lady Bird Lake are two of Austin's most visited attractions. Those in search of excitement can go mountain biking along miles of picturesque routes or hike up Mount Bonnell to take in the breathtaking scenery. Austin has everything you might want for a vacation or a day trip.
2022 Average RevPAN: $172
2022 Average Occupancy: 70%
Portland, Maine is a wonderful vacation spot for those who want to see all that New England has to offer. This is a safe idea for expanding your Airbnb business, as the average RevPAN is $172 and the occupancy rate is very high.
Portland's strong culture, historic waterfront district, and quaint cobblestone streets make it a desirable destination. The Old Port and Casco Bay are two of the city's most famous attractions. Those in search of excitement can go mountain biking on Deering Oaks Park's miles of beautiful trails or visit historic lighthouses like Ram Island Ledge Light.
2022 Average RevPAN: $150
2022 Average Occupancy: 70%
The South Bay region of California is an ideal destination for visitors seeking the ideal combination of sun, sand, and sea, and we were impressed by its high average occupancy rate and high average RevPAN.
Visit the beautiful beaches of Manhattan Beach and Hermosa Beach, or take a kayak tour of King Harbor, all in the southern coastal section of Los Angeles County. Those in search of excitement can go mountain biking along miles of picturesque routes or hike up the Palos Verdes Hills.
2022 Average RevPAN: $130
2022 Average Occupancy: 65%
Our final stop is in the nation's capital. Visitors seeking a taste of the local culture frequently flock to this market. The city's rich history can be discovered in its many historic landmarks, including the White House and the Capitol Building. Those in search of excitement can go mountain biking on Rock Creek Park's miles of picturesque trails or kayaking on the Potomac River.
Once you have settled on a location, research the regulations for the management of short-term rentals there. Beyond can help you optimize your revenue potential while saving you time because it automates data-driven processes like revenue management.