Which growing short-term rental markets provides the best return for investors.
• Rental Demand: How often are rentals booked throughout the year? By using a combination of the TTM occupancy and listing growth rates, this metric shows the relative strength of travel demand in each market. • Revenue Growth: Did properties earn more this year than they did last year? This is calculated by looking at the TTM year-over-year change in revenue per available room (RevPAR) for properties that were booked over the past two years. • Investability: This metric compares the expected income of a property relative to the cost of buying it. This is calculated by using the average revenue potential of homes in the area, subtracting the average cost for operating the property, and then dividing that by the typical home value in the same area for similar-type homes. Weight home values by the number of short-term rentals in each zip code, to make the home values more compatible with the relevant earnings in the same market. What Factors to Consider When Selecting Airbnb Markets to Invest? Where you buy a vacation home determines a lot of key indicators such as the Airbnb daily rates which you can charge, the Airbnb occupancy rate which you can expect, and ultimately the Airbnb income which you can make.
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