Shoutout to AirDNA for putting together an awesome study!
The pandemic is severely affecting people’s desire to live in high-cost areas, and they’re choosing cheaper options until things get better.
The number of STRs on Airbnb or Vrbo in major cities has skyrocketed over 600k since COVID19 hit. As a result of the COVID-19 pandemic, many people have opted to move out of major cities and into lower-cost areas. People are realizing how expensive life has become, especially since now most jobs only require an internet connection regardless of location.
For investors, Airbnb arbitrage has made it easier than ever to turn a vacant property into a passive investment. The table below ranks the 34 largest markets in order, revealing the best cities for Airbnb rental arbitrage opportunities based on short-term rent rates and — ultimately — your potential earnings from such rentals as well!
The filters on the top right allow you to switch between bedroom types (Studio, 1 Bedroom, 2 Bedrooms, 3+ Bedrooms, and the Market Average).
In cities like New York and San Francisco, apartment units are seeing significant decreases in the average effective rent. The average effective rent in San Francisco dropped by 10% to 25%. This is due to a recent drop in short-term rentals earnings from tourists who come into these markets during their visit as well as an overall increase of vacancy rates throughout all types of lodging uses across different areas within those same two cities.
For the full AirDNA article click the link below:
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