New York City is by far the largest market for Airbnb. The city remains identified as one of the top cities for Airbnb investment. In 2015, nearly 60 million people traveled to the Big Apple. The city has everything; from Broadway, to art museums and galleries, to vintage boutiques and cafes, to its capturing architecture.
After all, the city hasn’t been called ‘The Cultural Capital of the World’ for no reason. There are numerous opportunities for New Yorkers to invest in Airbnb New York. It would only be smart to invest in the most visited city in the US!
Mashvisor analysis provides you with information on occupancy rates, average price per night, average monthly rental income, and more important data. New Yorkers consider it “a way to make easy cash.” We hence aim to help you understand the potential in the Airbnb New York market.
Here, we’ve made a list of top Airbnb New York neighborhoods based on Airbnb occupancy rate and rental income along with some other important information.
Attractions
- Empire State Building. A 103-story building on Fifth Avenue in Midtown Manhattan, the Empire State Building is a cultural icon and one of the main tourist attractions in the city.
- Times Square. Definitely has to be one of New York’s best attractions. It is one of the most bustling tourist areas in New York. The commercial intersection located in Manhattan is known for its immense electronic billboards, Broadway theaters, and cinemas. Its famous ball drop also makes it a very popular New Year’s destination.
- Statue of Liberty. An icon of New York City, the Statue of Liberty is a famous historical colossal sculpture situated on Liberty Island.
- Central Park. Located in middle-upper Manhattan, Central Park is the most visited urban park in the US.
- The Metropolitan Museum of Art. It is the largest art museum in the US, and it houses some of the biggest art collections in the world. It recorded 6.3 million visitors in 2015.
- Rockefeller Center. Situated in Midtown Manhattan, the commercial complex offers numerous of activities for visitors to enjoy.
Related: How To Have The Ultimate Airbnb Occupancy Rate [Graphic]
When considering Airbnb investment opportunities in New York City, try to look for properties close to the city’s attractions. After all, location is key. Check out the list of neighborhoods we have below to get an overview of which area is best to invest in.
Room Types
There are three main room types currently being rented out on Airbnb New York.
- Entire Home: 66% – preferred by guests and hosts but has legal issues, since class A multiple dwelling properties cannot be rented out for fewer than 30 days.
- Private Room: 32% – this is where the host rents out private room in their property, while staying in the space with the guest.
- Shared Space: 2% – very rarely, hosts will rent out a shared space in their property.
Related: Best Cities for Airbnb Occupancy Rates
Top Airbnb New York Neighborhoods
The top New York City boroughs are Manhattan, Brooklyn, and Queens in this order. Manhattan has the most volume and is the most popular destination for Airbnb.
Airbnb states that the best neighborhood locations are ones with fewer hotel options. Again, proximity to city attractions, the subway, and hip places are all factors that contribute to making a neighborhood ideal for Airbnb investment. Below is a list of the top 10 New York City neighborhoods.
Lower East Side (LES)
Located in Manhattan, LES is known for its artful appeal. It is now home to some of the best restaurants in New York. It is also famous for its indie boutique shops which draw many tourists wishing to experience the ‘local feel ‘of the city. LES has one of the highest Airbnb occupancy rates and average monthly income.
Occupancy Rate: 82.85%.
Average Airbnb Rental Income/month: $4,274.
Boerum Hill
A Brooklyn neighborhood that is well known for its convenient proximity to the subway and its charm. Its diversity adds a special charm to it.
Occupancy Rate: 82.80%
Average Airbnb Rental Income/month: $3,919.
West Village
It is a fast-paced neighborhood that has maintained its friendly vibe. It is a favorite for tourists and locals alike. The nightlife scene is also favored in West Village.
Occupancy Rate: 82.40%
Average Airbnb Rental Income/month: $5,396.
Astoria Heights
This neighborhood brings Greece into Queens. Very famous for its numerous Greek restaurants and ‘Little Athens’. That as well as its micro-beer gardens make it a favorite among tourists.
Occupancy Rate: 79.65%
Average Airbnb Rental Income/month: $2,582
NoHo
Full of historic architecture, trendy and chic boutiques, and absorbing cafes.
Occupancy Rate: 77.84%
Average Airbnb Rental Income/month: $5,381
SoHo
SoHo is very well known as a fashion-oriented neighborhood. SoHo attracts models, celebrities, and tourists. It also offers unique shopping experiences for those interested.
Occupancy Rate: 77.80%
Average Airbnb Rental Income/month: $5,608
Other top neighborhoods include Chelsea, Clinton, East New York, and Vinegar Hill. Use Mashvisor’s data analytics to get further insights on top neighborhoods alongside their number of listings, occupancy rates, cash on cash return, and expected rental income. Our interactive investment property calculator will help you calculate the data and to know where you will likely make the most returns.
Related: Investment Property Calculator For Analyzing Real Estate Investments
Legal Issues/Concerns
There has been a lot of legal debate regarding Airbnb New York. The State of New York has made buying a property for the sole purpose of renting it out on Airbnb a rather non viable option.
This is because under New York State law, it is currently illegal for an Airbnb host to rent out their whole class A multiple dwelling property for a period less than 30 days without being present at the property. However, that means one-family (single-family) and two-family homes can be rented out legally in New York City.
It is important to mention that over half of the listings on Airbnb New York are being rented out illegally, 55% to be exact. The State of New York is imposing large fines for hosts breaching the law. Many Airbnb supporters argue that this policy will make it very difficult for New Yorkers to pay their bills. They hope that the state will be able to reason with Airbnb hosts and sensibly regulate the home sharing business.
Because of this legal hurdle, you must contemplate whether investing in Airbnb New York is the most viable option for you. While there is great potential to invest in the city, you want to ensure that you are abiding by the law.
Firstly, make sure you understand New York’s Airbnb rules and regulations. Secondly, look for single-family homes or two-family homes when trying to buy a property for Airbnb New York.