Over the past decade, Airbnb has become a major player in an industry that’s worth millions. Accordingly, many small businesses and investment venues have capitalized on that billion-dollar business to generate substantial revenue, and the real estate industry is one of them. To cut to the chase, there are many real estate markets and cities favorable for Airbnb investments. However, along with the strict regulations that a lot of cities are putting on Airbnb properties and hosts, it requires a bit more research to find the best real estate markets 2018 for Airbnb investments.
Using data from Mashvisor’s real estate database, we came up with the best real estate markets 2018 favorable for Airbnb investments:
Nashville, TN
It’s no surprise that Nashville made it on the list! It’s among the hottest housing markets in the US in 2018. Accordingly, it is one of the best real estate markets 2018 for Airbnb investments. Many attribute Nashville’s favorability for real estate investors to the affordability of housing prices. Property prices have remained constant despite the overall economic growth.
Furthermore, the arts and music scene in Nashville seems to keep the tourists coming back, now more than ever. To make things even better for real estate investors, there is no personal income tax and a very low unemployment rate! Check out these figures:
- Airbnb Rental Income: $2,288
- Median Property Price: $428,107
- Average Cap Rate: 3.33%
- Unemployment Rate: 2.7%
Austin, TX
Austin is among the best real estate markets 2018 and it’s definitely not a surprise. Thanks to the city’s rich history and cultural vitality, it remains a very desirable destination for tourists and especially for millennials. Not only do Airbnb hosts make a high rental income in the peak season, but hotel revenues have witnessed a decrease of around 10% since early 2015. Coincidence? I think not!
If you ever get to Austin, TX, make sure to make the most of it and have a swim in Barton Springs pool. To emphasize the vitality of Airbnb investments in Austin, here are a few facts that might help you understand why we’re excited about Austin’s Airbnb investments:
- Airbnb Rental Income: $2,058
- Median Property Price: $428,107
- Average Cap Rate: 3.33%
- Unemployment Rate: 2.7%
Palm Springs, CA
A city in the midst of the desert in southern California, Palm Springs has a spectacular art scene and vintage shops lining Palm Canyon Drive. According to Mashvisor’s investment property calculator, real estate investors are encouraged to invest in Airbnb rental units due to the touristic boom the city is witnessing. If you’re a Palm Springs Airbnb property owner, good for you! If you’re not one yet, hurry up to get your share of the average $400 a day that Airbnb hosts are making through Airbnb. To sum up, here are a few interesting facts to take note of about Palm Springs:
- Airbnb Rental Income: $4,596
- Median Property Price: $660,946
- Average Cap Rate: 4.56%
- Unemployment Rate: 3.7%
San Jose, CA
Another California haven! According to Mashvisor’s investment property calculator, some areas in San Jose are reaching a whopping $5,000 a month in Airbnb rental income. Pretty neat! San Jose takes its place among the best real estate markets 2018 for Airbnb investments for its proximity to the infamous Silicon Valley in California. Accordingly, tourists take their role seriously in making the city an enjoyable metropolitan experience. If you wish to take your share of rental income in San Jose, check these stats for the North Valley area:
- Airbnb Rental Income: $4,049
- Median Property Price: $858,772
- Average Cap Rate: 1.76%
- Unemployment Rate: 2.7%
Santa Rosa, CA
In the midst of Northern California lies the beautiful city of Santa Rosa. Known for its wine and beer breweries and fresh produce year-round, it makes perfect sense that another California haven makes it on the list of the best real estate markets 2018 for Airbnb investments. With affordable housing prices and an unemployment rate of 2.9% as of March 2018, it draws people from within the state of California and even investors from other states who are looking to venture into out-of-state real estate investing.
- Airbnb Rental Income: $3,459
- Median Property Price: $626,950
- Average Cap Rate: 3.74%
- Unemployment Rate: 2.9%
Portland, OR
The biggest city in Oregon also hits the spot for the best real estate markets 2018. With the Canadian Vancouver to the north and white dressed mountain peaks that sure pleases an eye, Portland is a busy metropolitan city that doesn’t shy away from tourists. In brief, let’s take the old china town to review stats about Airbnb profitability in Portland:
- Airbnb Rental Income: $2,853
- Median Property Price: $326,333
- Average Cap Rate: 2.19%
- Unemployment Rate: 3.7%
Whether you’re a real estate investor or a home buyer, you can make use of the data provided. Find the best deals on real estate investment properties and start enjoying Mashvisor by clicking here.
Key West, FL
Jumping from the west coast to the east coast, we reach the grade A real estate market of Key West in sunny Florida. Key West is an established luxury vacation destination. Moreover, local residents enjoy its seclusion from mainland Florida. Overall, Key West remains one of the best real estate markets 2018 for Airbnb investments and as far as the eye can see. Of course, real estate prices are not for the faint of heart. Here are a few stats to demonstrate:
- Airbnb Rental Income: $8,617
- Median Property Price: $1,065,361
- Average Cap Rate: 7.56%
- Unemployment Rate: 2.7%
That was our list of the best real estate markets 2018 for Airbnb investments! Of course, more vacation destinations remain lucrative and unmentioned here. However, we chose the ones with the most handsome stats to present to you!
If you have any more insights on the matter, please feel free to drop a comment in the comments section!
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