Should you invest in an Airbnb Long Beach property in 2021?
With so many major cities and hot travel destinations making it illegal to rent out non-owner occupied Airbnbs, it can be difficult to decide where to invest. The California housing market, in particular, is home to many cities that are no longer Airbnb-friendly. Throw COVID-19 into the mix and you may be completely lost when trying to find the best cities for Airbnb investment in 2021.
But you now have a new option for the new year: the Long Beach real estate market.
There have been new developments in 2020 to the local Airbnb regulations in Long Beach. These changes to the law are just one reason why you should consider investing in Airbnb Long Beach rentals in 2021.
5 Reasons to Invest in an Airbnb Long Beach Rental Property in 2021
There are actually five reasons why a real estate investor should consider investing in Long Beach vacation rentals:
You Can Now Legally Operate a Non-Owner Occupied Airbnb in Long Beach
According to the old Airbnb laws in Long Beach, operating a short-term rental property was legal. But the catch was that the Airbnb host had to be present during a guest’s stay. While this made the Long Beach housing market a profitable Airbnb location for homeowners, it left most real estate investors on the sidelines.
But in a positive turn of events, the City Council voted unanimously to allow unhosted short-term rentals to operate in the city this past November. This means owning an Airbnb Long Beach investment property is a viable strategy for real estate investors – no matter where they live.
Of course, there are other Airbnb laws to be aware of. The main reason the City Council voted to permit unhosted short-term rentals in Long Beach was to ensure they could regulate them. A few regulations of note include:
- Having to register your Long Beach vacation rental
- A cap on the number of unhosted rentals allowed (800)
- A limit on the number of rentals one host can register – one or two if one is your primary residence
- Local property owners have the right to petition to ban Long Beach short-term rentals in their census block
- Fines of up to $1000 if you violate any laws
Be sure to read up on the local Airbnb Long Beach laws before making a move in 2021.
Airbnb Long Beach Hosts Are Still Earning Money During COVID-19
It’s true that the coronavirus pandemic has made it difficult for many Airbnb hosts across the country and the world to maintain bookings and cash flow. And as of the week of this writing, Long Beach is under a new stay-at-home order due to a rise in COVID-19 cases across California. Under the order, non-essential travel is prohibited.
However, when Long Beach opened back up after initial lockdowns earlier this year, Mashvisor’s data shows that hosts were earning a high income and a good Airbnb return on investment:
Mashvisor’s Airbnb Long Beach Statistics (November 2020)
- Average Airbnb Daily Rate: $154
- Monthly Airbnb Rental Income: $3,662
- Airbnb Cash on Cash Return: 2.2%
- Airbnb Occupancy Rate: 64%
Mashvisor’s Airbnb analytics tell us that, despite the pandemic, local hosts were enjoying a good cash flow during 2020. With the promise of a vaccine by 2021, we can safely forecast that Airbnb Long Beach rentals will generate even more for their hosts next year.
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Domestic Travel to Beach Destinations Will Be Big in 2021
Not only will a vaccine be great news for anyone who owns an Airbnb Long Beach rental property, but the emerging trends in the travel industry for 2021 will also play a role in profitability. According to Airbnb’s predictions for 2021 travel trends, domestic travel will be huge next year. 62% of those surveyed by Airbnb said they are “interested in taking a vacation within driving distance of home.” Airbnb predicts that beach towns, specifically, will be popular.
While the Long Beach real estate market is not listed among one of Airbnb’s “trending destinations,” this trend bodes well for the area. Long Beach has always been a hotspot for beachgoers and with domestic travel up, we are likely to see even higher Airbnb occupancy rates in Long Beach in 2021.
Long Beach Has Always Been a Hot Travel Destination
Before the pandemic hit, Long Beach thrived as a hot tourist destination. The city typically welcomes around 6 million tourists every year.
Although data is not readily available yet when it comes to tourist stats for 2020, it’s likely the city saw fewer visitors this year.
However, there is no reason why Long Beach won’t quickly bounce back and continue to receive millions of visitors every year, once the threat of the coronavirus has passed. This means an Airbnb host should have no problem landing bookings and earning money in the city.
You Can Find Affordable Airbnb Properties for Sale in Long Beach
We might have convinced you at this point that investing in Airbnb Long Beach properties in 2021 is a smart move. But one thing could still be holding you back – the price tag. According to Mashvisor’s data, the median property price for the Long Beach housing market is $951,558 (a price per square foot of $529).
The good news is that you don’t necessarily have to pay an arm and a leg to invest in Long Beach real estate. Using Mashvisor’s Rental Property Finder, we quickly found a few more affordable Long Beach houses for sale. Better yet, this tool also pulled up the top-performing Airbnb Long Beach properties. Take a look:
So, with the right real estate investment tools, it’s possible to find more affordable Long Beach real estate that will perform well as a short-term rental property.
The Best Neighborhoods in Long Beach for Buying an Airbnb Property
You now have 5 reasons to invest in Airbnb Long Beach rentals. We have even armed you with a great tool for finding profitable Airbnbs for sale. But there’s one more thing you need to know: Where exactly in Long Beach will an Airbnb make a good return? Here are the best neighborhoods for buying an Airbnb in the Long Beach housing market 2021:
#1. Los Cerritos Area
- Median Property Price: $1,152,059
- Price per Square Foot: $452
- Average Airbnb Daily Rate: $166
- Monthly Airbnb Rental Income: $5,219
- Airbnb Cash on Cash Return: 5.6%
- Airbnb Occupancy Rate: 60%
#2. West Side
- Median Property Price: $647,606
- Price per Square Foot: $428
- Average Airbnb Daily Rate: $189
- Monthly Airbnb Rental Income: $4,213
- Airbnb Cash on Cash Return: 4.7%
- Airbnb Occupancy Rate: 70%
#3. University Park Estates
- Median Property Price: $851,154
- Price per Square Foot: $505
- Average Airbnb Daily Rate: $205
- Monthly Airbnb Rental Income: $5,929
- Airbnb Cash on Cash Return: 3.6%
- Airbnb Occupancy Rate: 60%
#4. Wrigley
- Median Property Price: $859,021
- Price per Square Foot: $427
- Average Airbnb Daily Rate: $149
- Monthly Airbnb Rental Income: $3,884
- Airbnb Cash on Cash Return: 3.6%
- Airbnb Occupancy Rate: 69%
#5. Hellman
- Median Property Price: $868,695
- Price per Square Foot: $473
- Average Airbnb Daily Rate: $147
- Monthly Airbnb Rental Income: $3,464
- Airbnb Cash on Cash Return: 3.5%
- Airbnb Occupancy Rate: 62%
#6. The Plaza
- Median Property Price: $773,726
- Price per Square Foot: $544
- Average Airbnb Daily Rate: $144
- Monthly Airbnb Rental Income: $4,537
- Airbnb Cash on Cash Return: 3.3%
- Airbnb Occupancy Rate: 72%
#7. North Long Beach
- Median Property Price: $737,702
- Price per Square Foot: $483
- Average Airbnb Daily Rate: $124
- Monthly Airbnb Rental Income: $3,344
- Airbnb Cash on Cash Return: 3.2%
- Airbnb Occupancy Rate: 76%
#8. Lakewood Village
- Median Property Price: $1,418,579
- Price per Square Foot: $418
- Average Airbnb Daily Rate: $173
- Monthly Airbnb Rental Income: $4,851
- Airbnb Cash on Cash Return: 3.2%
- Airbnb Occupancy Rate: 71%
#9. California Heights
- Median Property Price: $709,467
- Price per Square Foot: $476
- Average Airbnb Daily Rate: $142
- Monthly Airbnb Rental Income: $3,592
- Airbnb Cash on Cash Return: 2.9%
- Airbnb Occupancy Rate: 66%
#10. City College Area
- Median Property Price: $768,676
- Price per Square Foot: $539
- Average Airbnb Daily Rate: $116
- Monthly Airbnb Rental Income: $4,205
- Airbnb Cash on Cash Return: 2.8%
- Airbnb Occupancy Rate: 80%
A Few Things to Keep in Mind
Before you jump into an Airbnb Long Beach investment, do keep in mind that as long as COVID-19 is still around, you may have to suffer time with no bookings as a result of mandatory lockdowns. To get through this, have cash reserves to cover any costs you’ll have to cover out of pocket during such times. This is just smart real estate investing. You could also wait until a COVID-19 vaccine is available to Californians in 2021. Alternatively, you can use Mashvisor to find an Airbnb investment property that can pay for itself, even if it’s only rented out for a few months out of the year. Sign up now and enjoy 15% off.