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The Best Beach Towns for Airbnb in the USA

The Best Beach Towns for Airbnb in the USA

Are you planning to grow or start a vacation rental business? Popular with summer tourism, Beach towns are a great option to consider. There's plenty of flexibility as it relates to beach houses - many hosts even use their beach property for personal use while renting it out in the winter. Nonetheless, for others, this can be viewed as their main source of income.

It is crucial for investors to thoroughly conduct research and take into account many criteria before investing in a beach house for your Airbnb. Let's dive in to everything you should consider before investing in an Airbnb beach house:

  • Why is it a good idea to invest in an Airbnb beach house?
  • What are the things to consider when investing in a beach house?
  • What are the best beach towns for Airbnb to invest in?

Why Is It A Good Idea To Invest In An Airbnb Beach House?

Beach vacations are incredibly popular among tourists due to the resurging interest in travel and the growing appeal of beaches - especially during the summer. That being said, the popularity of beachfront properties among real estate investors is not surprising.

Beach homes can offer a fantastic return on investment, a steady source of income, higher guest appeal, and proximity to a wonderful vacation location. BusinessWire projects a $62.7 billion increase in the vacation rental market between now and 2024. It's never been a better time to invest in a beach house for high-return, vacation rental income.

Furthermore, keep in mind that opting to rent a beachfront vacation property for a few weeks each summer can end up costing you almost the same amount as the yearly mortgage. If you can, it can be surprisingly sensible to buy a beach house. Renting your beachfront property throughout the peak season can often make more money than your mortgage amount, as an added bonus.

But, not all beach homes are created equal. Choosing the appropriate kind of investment property is crucial for property owners if they want to maximize their return on investment. Get the most out of your beach real estate investment by doing thorough research as a property owner on what to look for in a beach house and the top beach towns in the USA.

What Are The Things to Consider When Investing In A Beach House?

What Are The Things to Consider When Investing In A Beach House?

Define your Goals

Why do you want to invest in an Airbnb beach property, you may ask yourself? Is it strictly for financial strategy? Do you consider year-round rentals? Or perhaps you could rent it out to vacationers in the summer and use it as a second home during the off-season, or vice versa?

In either case, be specific about your objectives and who your target market is. By doing this, you can develop a solid business plan strategically.

Furthermore, the recent shift in travel habits, which has boosted the number of families and digital nomads seeking attractive homes-away-from-home options all year round, is also predicted to continue.

Do Research

Location, as we've all heard, is everything. However, be aware that while considering an Airbnb beach house investment, location is not the only factor to take into account.

You must also consider several aspects, including rental revenue, property type, furnishings, taxes, property value, and permits, to name a few.

Having said that, before making any hurried decisions, do your research and identify the best place to invest that will yield a return on investment, just like you would with any significant investment.

Draw up a Business Plan

Before deciding to invest in an Airbnb beach property, do your homework and develop an in-depth business plan for your vacation rental.

By doing this, you'll be able to spot potential obstacles and assess the likelihood that your business will flourish.

Find a Local Real Estate Agent

Consider consulting a specialist who is knowledgeable about the area and whose advice you can rely on for guidance on the types of properties that travelers are likely to be interested in and the best spots in town for Airbnb investment.

Property Management Costs

Operating a vacation rental requires a significant amount of time and effort, from marketing the property to guest and staff communications, rental agreements, and maintenance.

Having said that, you might need to hire a property manager, particularly if you own a vacation rental property part-time or far away, which unfortunately adds up to your expenses. Moreover, the possible expense of marketing your property is also something to consider.

Investing in vacation rental software like Hostaway to help you scale and optimize your business is a sensible and cost-effective decision. By doing this, you'll save time and be able to concentrate more on improving the guest experience, which will lead to more favorable feedback from guests.

Besides that, be aware that due to corrosion caused by the salty air, Airbnb beach houses typically need ongoing maintenance and will require replacement furnishings and fittings.

Also, buying a beachfront property puts you at risk for natural calamities like storms and flooding. It is crucial to insure your property against any potential risks as a result.

What Are The Best Beach Towns In The USA For An Airbnb?

What Are The Best Beach Towns In The USA For An Airbnb?

1. Myrtle Beach, South Carolina

Myrtle Beach is popularly recognized for its stunning beachfront views, a variety of entertainment, delicious food, and bustling nightlife. It is situated in the center of South Carolina's Grand Strand.

Because of its tempting long, sandy beaches, lush golf courses, and southern friendliness, it is also a well-known spring break destination, which makes it a perfect spot for investors to invest instantly.

Having said that, it should come as no surprise that Myrtle Beach is a frequently visited vacation spot featuring exciting attractions, beautiful scenery, and relaxation.

AirDNA Market Data:

Average Daily Rate - $ 198 Occupancy Rate - 64% Revenue - $ 2,738

2. Beaufort, North Carolina

On North Carolina's Crystal Coast, Beaufort, a charming beach town rich with maritime history and old-fashioned, southern charm. Often known as "America's Favorite Town," it is beloved by Southerners for its classic cottage architecture, breezy boardwalk atmosphere, and top-notch boating and fishing.

AirDNA Market Data:

Average Daily Rate - $ 235 Occupancy Rate - 60% Revenue - $ 3,155

3. Dauphin Island, Alabama

Dauphin Island is a Gulf Coast island off the coast of Alabama that is home to the same-named village. A three-mile high-rise bridge connects Dauphin Island to the mouth of Mobile Bay, which is located in the Gulf of Mexico.

It is also a place to get lost in nature and history with sights like the Audubon Bird Sanctuary and the Civil War-era remnants of Fort Gaines, whereas the surrounding Gulf Shores region is noted for its family-friendly attractions.

Also, this is the only pet-friendly beach in the vicinity, captivating travelers with its gorgeous coastline parks.

AirDNA Market Data:

Average Daily Rate - $ 310 Occupancy Rate - 68% Revenue - $ 4,846

4. Navarre, Florida

Navarre Beach, a tiny coastal community with a lot to offer businesses, is located just east of Pensacola. You can witness the overwhelming of tourists to this location relaxing on the beach and swimming in the clear seas.

Also, a sea turtle conservation center and a pier where you may watch dolphins are just a couple of the additional amenities this tiny beach town provides to make tourists' vacations unforgettable.

Without a doubt, Navarre beach is the crown jewel of Navarre.

AirDNA Market Data:

Average Daily Rate - $ 310 Occupancy Rate - 73% Revenue - $ 4,615

5. Galveston, Texas

Galveston is a barrier island on the Gulf Coast with 32 miles of shoreline and pleasant weather perfect for a beach vacation. Not to mention, this tourist destination provides vacationers with a wide range of attractions, including golf courses, art galleries, and more than 80 annual events. Its most well-liked attractions include Moody Garden and Schlitterbahn Waterpark.

All things considered, choosing to invest in Galveston is a worthwhile investment for both tourists and investors. But, it's crucial to be aware that Galveston has zoning regulations in place that limit the activities of vacation rentals.

Yet investors shouldn't give up on investing in a beach house in this area; it just needs a little more research.

AirDNA Market Data:

Average Daily Rate - $ 275 Occupancy Rate - 47% Revenue - $ 3,076

6. Newport, Oregon

Newport is a great beach town and a unique travel destination that is ideal for family vacations. Vacationers can fill up at local cafés that have seasonal menus since long before the term "farm-to-table" became trendy by spending their days whale watching, fishing, hiking, or crab fishing.

The rugged shoreline and nearby Siuslaw National Forest add to the small coastal town's timeless moments and promise some adventures for visitors. Not forgetting, investing in a beachfront property on the Oregon Coast will also likely provide enormous returns.

AirDNA Market Data:

Average Daily Rate - $ 209 Occupancy Rate - 75% Revenue - $ 3,200

7. Cape May, New Jersey

Nothing compares to Cape May, a haven for beach lovers. Vacationers can rent kayaks and paddle along the waterways, take a ride through the quaint seaside town, or hop on a boat to easily watch dolphins and whales.

Also, its attention-grabbing location has made family vacations the top choice thanks to its attractions, which include a two-mile boardwalk with water activities and rollercoasters.

But, bear in mind that beachfront properties in this great neighborhood can start at a higher cost. It is nevertheless important to take into account locations that aren't actually on the beach but provide excellent value.

AirDNA Market Data:

Average Daily Rate - $ 398 Occupancy Rate - 75% Revenue - $ 5,463

8. Gulf Shores, Alabama

On the coast of Alabama, Gulf Shores is well known for its pristine white quartz beaches and emerald-green waters.

This family-friendly vacation spot, which includes Orange Beach, provides vacationers with a selection of activities to enjoy throughout the year, including water sports, amusement parks, fine dining, golf courses, exciting dolphin tours, and not to forget its Ferris wheel on the pier.

It is not surprising that real estate investors are eager to invest in residential properties big enough to host family holidays because success in this breathtaking place depends on them.

AirDNA Market Data:

Average Daily Rate - $ 287 Occupancy Rate - 65% Revenue - $ 4,298

Ready to find out how Hostaway can transform your business?

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