As every smart real estate investor knows, location is KEY when it comes to nearly everything in real estate investing. This is especially true for short-term (Airbnb) investment properties. The location of your Airbnb rental will determine the demand for the investment property, its profitability and overall return on investment. One of the hottest real estate markets for Airbnb rentals in 2018 is San Diego. Let’s go further into details explaining why and in which neighborhoods property investors should consider buying an Airbnb San Diego real estate investment property.
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
Why is Airbnb San Diego a Hot Real Estate Market?
San Diego, located on the coast of the Pacific Ocean, is the second populous city in the State of California with a population of over 1.4 million! This heavy population is a good sign for San Diego real estate investors as it indicates a high demand for investment properties (whether traditional or Airbnb).
Related: Real Estate Investing: Traditional vs. Airbnb Investments
Moreover, San Diego continues to improve and enjoy a healthy economy. Thanks to its beautiful weather and over 70 miles of beautiful coastline, the tourism industry in the city is one of the most successful ones in the country! Also, San Diego is home to numerous attractions including the famous San Diego Zoo, SeaWorld San Diego, and Balboa Park. With almost 35 million people visiting the city each year, San Diego is the 11th most visited city in the US by overseas travelers and is one of the top 5 locations for domestic tourism.
As you would expect, this thriving tourism industry increased the demand for short-term rentals. Airbnb San Diego property investors are guaranteed a high Airbnb occupancy rate and can charge more for rent! This, in turn, made Airbnb San Diego a great real estate market.
Click here to find and analyze the best investment properties in San Diego right now!
Airbnb San Diego Laws and Regulations
One thing that property investors interested in Airbnb San Diego should take into consideration is the city’s regulations regarding Airbnb rentals. So far, San Diego isn’t super strict when it comes to Airbnb hosts. However, property investors still need to understand the codes, housing standards, specific taxes for Airbnb rentals, and HOA Rules before buying an investment property specifically to rent it out on Airbnb.
A Quick Summary of San Diego Real Estate Market
Based on data from Mashvisor’s investment property calculator, investment properties in the San Diego real estate market are rather expensive. However, they offer high rental income for both traditional and Airbnb rental properties.
- Median Property Price: $745,637
- Traditional Rental Income: $2,792
- Airbnb Rental Income: $1,435
- Traditional Cash on Cash Return: 1.68%
- Airbnb Cash on Cash Return: 0.96%
- Traditional Cap Rate: 1.68%
- Airbnb Cap Rate: 0.96%
The Best Neighborhoods to Invest in Airbnb San Diego Real Estate Market
Airbnb San Diego Real Estate – Pacific Beach
- Median Property Price: $1,074,950
- Airbnb Rental Income: $3,450
- Airbnb Cash on Cash Return: 1.32%
- Airbnb Cap Rate: 1.32%
- Airbnb Occupancy Rate: 59.16%
Airbnb San Diego Real Estate – Ocean Beach
- Median Property Price: $1,162,500
- Airbnb Rental Income: $3,049
- Airbnb Cash on Cash Return: 1.4%
- Airbnb Cap Rate: 1.4%
- Airbnb Occupancy Rate: 64.91%
Airbnb San Diego Real Estate – North Park
- Median Property Price: $469,500
- Airbnb Rental Income: $3,744
- Airbnb Cash on Cash Return: 5.34%
- Airbnb Cap Rate: 5.34%
- Airbnb Occupancy Rate: 62.49%
Airbnb San Diego Real Estate – East Village
- Median Property Price: $554,900
- Airbnb Rental Income: $2,694
- Airbnb Cash on Cash Return: 2.34%
- Airbnb Cap Rate: 2.34%
- Airbnb Occupancy Rate: 54.40%
Airbnb San Diego Real Estate – Mission Hills
- Median Property Price: $1,725,000
- Airbnb Rental Income: $6,695
- Airbnb Cash on Cash Return: 1.67%
- Airbnb Cap Rate: 1.67%
- Airbnb Occupancy Rate: 66.24%
Airbnb San Diego Real Estate – La Jolla
- Median Property Price: $1,095,000
- Airbnb Rental Income: $5,488
- Airbnb Cash on Cash Return: 2.06%
- Airbnb Cap Rate: 2.06%
- Airbnb Occupancy Rate: 66.95%
Airbnb San Diego Real Estate – Hillcrest
- Median Property Price: $695,000
- Airbnb Rental Income: $3,563
- Airbnb Cash on Cash Return: 2.93%
- Airbnb Cap Rate: 2.93%
- Airbnb Occupancy Rate: 67.45%
Airbnb San Diego Real Estate – Golden Hill
- Median Property Price: $199,500
- Airbnb Rental Income: $2,159
- Airbnb Cash on Cash Return: 7.63%
- Airbnb Cap Rate: 7.63%
- Airbnb Occupancy Rate: 62.90%
Airbnb San Diego Real Estate – Park West
- Median Property Price: $1,442,500
- Airbnb Rental Income: $2,653
- Airbnb Cash on Cash Return: 0.32%
- Airbnb Cap Rate: 0.32%
- Airbnb Occupancy Rate: 60.22%
Airbnb San Diego Real Estate – University City
- Median Property Price: $749,500
- Airbnb Rental Income: $3,333
- Airbnb Cash on Cash Return: 2.35%
- Airbnb Cap Rate: 2.35%
- Airbnb Occupancy Rate: 56.16%
Sign up for Mashvisor now and get access to our investment property calculator to help you buy the best investment properties in the San Diego real estate market.
Airbnb San Diego Real Estate Market – The Bottom Line
All in all, Airbnb San Diego offers amazing opportunities for property investors interested in this type of real estate investing. Thus, if you are thinking about buying an investment property to rent it out on Airbnb, you should definitely consider looking into the San Diego real estate market.
The above-mentioned neighborhoods are those in which property investors will find real estate investment properties in San Diego that are worth their money and generate a high return on investment, as calculated by Mashvisor’s investment property calculator.
Related: An Investment Property Calculator Is a Must. Read Here Why
Mashvisor is an online platform that provides real estate investors with the best real estate investing tools and data analysis for both traditional and Airbnb investments to make smart investment decisions. To learn more about our product, click here.
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