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Top 5 US Airbnb Markets to Invest in 2023

Top 5 US Airbnb Markets to Invest in 2023

Driven by the demand for staycations as well as budget-friendly accommodation due to rising prices of travel, the global short term vacation rental market size – valued at $99.38 billion in 2021 – is expected to grow at a CAGR of 11.1% from 2022 to 2030. The home accommodation category, buoyed by the increasing trend for family travel, accounted for the majority share (42%) of overall revenue and is expected to retain the lead. Meanwhile, the North American market dominated the global industry in 2021, accounting for over 35% of revenue, and is expected to hold its leading position in the period up to 2030. Thus, despite the forecasted growth in listings and decline in occupancy for 2023, home accommodations continue to be a good bet for investment. According to a 2020 CBRE study, only 4% of U.S. short term rentals on STR booking channels are unique units such as lighthouses, boats, and tents; B&Bs; hotels; and hostels.

The Best US Airbnb Cities to Invest in 2023

Top 5 US Airbnb Markets to Invest in 2023

1. Poconos, PA

The Poconos is a huge tourist destination in Pennsylvania, drawing 27.9 million visitors, a majority of whom are traveling for leisure and spending over $3 billion, 43% of which is on lodging. A year round destination, it stretches across four counties and includes mountains, 150 lakes, state forest land, 126 trails, waterfalls, and other places of scenic nature and outdoor fun. The Pocono Mountains contains six ski areas that account for nearly half of all ski visitors to the state. The Poconos is also known for its calendar of events and festivals, as well as breweries, wineries, and dining options. The economic impact of the Pocono Raceway is equivalent to having the Super Bowl each year.

__Mount Pocono __

According to 2022 AirDNA data for Mount Pocono:

  • ADR is $459 (December)

  • Occupancy rate is 55% (July)

  • Average monthly revenue is $5,300 (April)

  • 78% of vacation rentals are entire homes and average 3.8 bedrooms and 9.5 guests

The median sold price of a house in Mount Pocono is $160,800

Pocono Lake

According to 2022 AirDNA data for Pocono Lake:

  • ADR is $323 (January)

  • Occupancy rate is 80% (August)

  • Average monthly revenue is $6,300 (July)

  • 100% of vacation rentals are entire homes and average 3.4 bedrooms and 8.5 guests

The median sold price of a house in Pocono Lake is $310,000

__Pocono Pines __

According to 2022 AirDNA data for Pocono Pines:

  • ADR is $425 (February)

  • Occupancy rate is 80% (August)

  • Average monthly revenue is $7,100 (July)

  • 100% of vacation rentals are entire homes and average 3.6 bedrooms and 8.8 guests

The median sold price of a house in Pocono Pines is $353,300.

The average fair market rent for a 3-bedroom home in Pennsylvania is $1,483.

Top 5 US Airbnb Markets to Invest in 2023

2. Bend, OR

Known for its pristine beauty, outdoor pursuits, and legendary beer trail, Bend is a small mountain town located at the base of the Cascades that is responsible for a significant portion of Central Oregon’s 4.5 million visitors each year. Bend offers rivers, mountains, lakes, and a high desert climate with sunny days and cool nights, making it ideal for nature and adventure lovers. It is also home to craft breweries and restaurants, the Smith Rock State Park, and skiing and other winter sports at Mt. Bachelor.

According to Visit Bend, 87% of Summer 2022 visitors to Bend stayed overnight, accounting for an average stay of 4.2 nights. Meanwhile, 70% of visitors during Winter 2021/22 hailed from Oregon, California, and Washington, staying an average of 4.9 nights with particular strength in stays of 10 or more nights.

According to 2022 AirDNA data for Bend:

  • ADR is $277 (July)

  • Occupancy rate is 90% (July)

  • Average monthly revenue is $6,100 (August)

  • 84% of vacation rentals are entire homes and average 2 bedrooms and 5.5 guests

The median sold price of a house in Bend is $662,200.

The average fair market rent for a 3-bedroom home in Oregon is $1,269.

The average rent for an apartment in Bend is $1,884.

Top 5 US Airbnb Markets to Invest in 2023

3. Miami, FL

The second largest city in the sunshine state of Florida, Miami is a highly popular vacation spot in the state, the country, and the world. Home to both a busy airport and cruise port, in 2019, Greater Miami drew over 24 million visitors with 67% staying overnight. Meanwhile, in the first three months of 2022, Florida welcomed 36 million travelers.

Miami attracts a variety of visitors, from partygoers and celebrities to families, business travelers, and college students. From wonderful entertainments to great nightlife; fashion, arts, culture, and cuisine; to conference spaces and theme parks in nearby Orlando, Miami is not short of attractions for travelers. There are also plenty of experiences for sports lovers, from sailing and deep-sea fishing to golf and tennis. The Everglades National Park is a favorite among those looking for wilderness. Over the pandemic, Miami has grown into a year round destination.

According to 2022 AirDNA data for Miami:

  • ADR is $279 (March)

  • Occupancy rate is 82% (February)

  • Average monthly revenue is $5,200 (February)

  • 84% of vacation rentals are entire homes and average 2 bedrooms and 5.5 guests

The median sold price of a house in Miami is $472,000.

The average fair market rent for a 3-bedroom home in Florida is $1,507.

The average rent for an apartment in Miami is $2,356.

Top 5 US Airbnb Markets to Invest in 2023

4. Ruidoso, NM

A mountain oasis, Ruidoso is a beautiful village in the Sierra Blanca mountain range surrounded by a national forest. With 11 parks, lakes, and other spaces of nature including 26 miles of trails as well as ranches and golf courses, Ruidoso has more than enough to satisfy nature-minded and sports tourists. A ski town, in winter, travelers can enjoy skiing at the Ski Apache resort which is open between Thanksgiving and Easter. A Native American settlement renamed Rio Ruidoso (noisy river) by Spanish settlers, Ruidoso is also rich in history and culture. It is also home to three casinos. A great place to visit in any of the four seasons, no wonder the mountain resort draws nearly 2 million visitors each year.

According to 2022 AirDNA data for Ruidoso:

  • ADR is $260 (December)

  • Occupancy rate is 71% (July)

  • Average monthly revenue is $4,400 (July)

  • 97% of vacation rentals are entire homes and average 2.6 bedrooms and 6.8 guests

The median listing price of a house in Ruidoso is $379,000.

The average fair market rent for a 3-bedroom home in New Mexico is $1,626.

Top 5 US Airbnb Markets to Invest in 2023

5. Branson, MO

Considered a family-friendly destination, Branson offers plenty of attractive options for the visitor, from live music across a range of genres to shopping, history, and other recreation activities with Silver Dollar City being a popular place. Outdoor enthusiasts have much to enjoy, from hiking and surfing to fishing, sailing, kayaking, and golfing. Branson is also known for its alcoholic brews, from whiskey and moonshine to wines as well as top-rate burgers, pies, and huge breakfasts.

In 2021, nearly 10 million travelers visited Branson, voted the third best U.S. destination by the Trip Advisor community the same year. Located within a day’s drive to 50% of the population in the U.S. it also has two airports for those who prefer to fly though a majority of visitors (61%) drive to the destination. The vast majority of visitors stay overnight accounting for an average stay of 4.1 nights. Nearly nine in ten visitors considered it likely they would visit in the coming year.

According to 2022 AirDNA data for Branson:

  • ADR is $233 (July)

  • Occupancy rate is 87% (July)

  • Average monthly revenue is $4,600 (July)

  • 93% of vacation rentals are entire homes and average 2.5 bedrooms and 7.6 guests

The median listing price of a house in Branson is $259,000.

The average fair market rent for a 3-bedroom home in Missouri is $1,060.

Key Takeaway

As high home prices and rents make investing in property worthy of a vacation rental in the U.S. harder, market performance must be carefully balanced against investment costs to realize the best cities to invest in an Airbnb. As evidenced by the list, the effects of 2022 STR trends for more rural and remote locations and the growth in sports tourism combined with families choosing outdoor locations over cities continue to play out in 2023.

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