As the tourism industry bounces back, let’s analyze the Airbnb market trends to see if 2022 is the best time to invest in vacation rentals.

Table of contents

  1. How the 2022 Travel Trends Are Affecting the Airbnb Market in the US
  2. Should You List Your Short-term Rental on Other Platforms?
  3. How to Analyze the Airbnb Rental Market
  4. Top 10 Airbnb Markets
  5. Subscribe to Mashvisor to Invest in Airbnb

The COVID-19 pandemic that started in early 2020 has done a lot of damage to the global tourism industry. The short-term rental suffered the adverse effects of long-term lockdowns and travel restrictions. Fortunately, the Airbnb rental market started to bounce back in late 2021. In fact, the demand for vacation rentals has seen a 10% increase compared to the pre-pandemic figures in 2019. On top of that, rental revenues also grew by 40%.

As the country progressively reopens its doors to both local and international tourists, we expect to see better figures in the Airbnb market this year. While the available listings are expected to increase, occupancy will still remain high. We can also anticipate steady demand for rentals, especially during peak vacation months. 

How 2022 Travel Trends Are Affecting the Airbnb Market in the US

The global travel market remains positive that 2022 will be the year that the tourism and travel industries will rebound after almost a couple of years of disruptions. After almost two years in lockdown, many travelers from around the world are ready to take more leisure trips this year. In addition to that, since most businesses are back to normal, we also look forward to seeing more people taking business-related trips. Because of this, the Airbnb business will see increased bookings and better returns. 

If you’re an Airbnb owner or you’re planning to invest in short term rental properties, it’s important to know the current travel trends and understand their impact on the Airbnb market. Here are the 2022 travel trends that vacation rental investors should be aware of:

People Feel the Need to Travel

Staying at home for almost two years with limited mobility has caused a lot of anxiety and mental stress. That is why when the vaccine became available and the initial COVID scare slowed down, a lot of people feel a new sense of urgency to go on vacation. People feel they have lost two years to explore and enjoy, so many are desperate to hit the road and get away from their boring routine while in lockdown.

Because travel now seems like a necessity instead of a luxury, there will be a growing demand for vacation rentals, not only across the country but all over the world. This helped increase the global Airbnb market share

The Cost of Flights Is Likely to Shoot Up

With the exceedingly low airline sales in 2020, many airline companies have suffered tremendously. Now that people are allowed to travel again this year, fuel prices have unfortunately surged. Travelers who plan to go abroad for vacation should prepare for a significant price increase in airline tickets. 

The good news is that many leisure travelers are prepared to spend more money on vacation this year than they did in the past. Those who cannot afford to spend a lot on flights will most likely opt for local travel and go to destinations where they can just drive instead.

Business Travel Is Back

While corporate travel has not yet fully recovered, we expect to see more business-related trips this year. As more companies have slowly gone back to normal, global corporations will likely send people to their headquarters for meetings and training. As a result, business districts in big cities will become busier this year. 

If you’re eyeing solo and business travelers as your Airbnb target market, you may want to consider buying an investment property in an area near business centers. Buying a condo unit located within or close to business districts is an excellent idea so you can attract guests that are traveling for work or business.

Increased Travel to Rural Areas

Many travelers prefer to go to rural locations and explore the great outdoors across the United States. In 2021, rural travel in the US has increased by around 28%. Two years of staying at home have made people want to go to open spaces. This is why locations with access to beaches, state and national parks, hiking trails, and mountain resorts are becoming the top vacation destinations.

This year, the Airbnb market in many suburban areas will see substantial growth in rental demand and occupancy rate. If you plan to rent out to adventure-seekers and outdoor-goers, it’s best to find a vacation rental property investment near these phenomenal destinations.

Increased Travel to Family-Friendly Destinations 

Family travels are becoming a priority, so an influx of travelers can also be expected in family-friendly destinations. Places that feature kid-friendly attractions like zoos, museums, and theme parks will likely get an increase in booking from family vacationers this year. 

Some families, especially with older kids, prefer to go to rural areas and are booking longer stays. According to Airbnb, family travels to rural destinations were up from 14% in 2019 to 28% in 2021. Airbnb listings with a capacity of five or more guests accounted for 64% of summer nights booked in 2021.

Related: 6 Airbnb Trends to Watch Out For in 2022

Should You List Your Short-term Rental on Other Platforms?

To get the most out of your short term rental investment, it’s best to list your property on multiple vacation rental platforms so it can get more exposure. Becoming completely dependent on one particular vacation listing platform like Airbnb can be detrimental to your short-term rental business. If you stick to one platform only, you risk not being able to maximize your bookings and improve your Airbnb earnings.

However, it’s essential to choose the right platforms and know where to list your short-term rentals besides Airbnb. This allows you to diversify your rental revenues, reach a wider range of audiences, and protect your business in case the main listing platform you use encounters any issues.

Related: How to Boost Airbnb Profitability in 2022: 7 Tips

Airbnb’s Top 5 Competitors

Many investors believe that Airbnb is the most popular vacation rental platform being used globally. Most travelers often go to Airbnb’s website or mobile app to search for short-term rental properties if they prefer not to stay in a hotel. However, Airbnb is not the only listing platform available. In fact, a lot of Airbnb competitors have emerged, making it a lot easier for travelers to find a property to book. 

Here are the top five alternatives to Airbnb:

1. Vrbo

Vrbo is the shortened form for “vacation rental by owner”. This platform features all types of vacation rentals, including houses, condos, apartments, villas, and more. This platform allows homeowners to post their property listings and advertise to renters. The major difference between Vrbo and Airbnb is that Vrbo only offers standalone vacation homes. Unlike Airbnb, it does not typically offer shared spaces like private rooms or options like cabins or campsites. Moreover, since Airbnb has more listings available, the Airbnb market is bigger compared to Vrbo.

Learn More: The Investor’s Guide to HomeAway (Now Known as Vrbo)

2. HomeToGo

HomeToGo.com is one of the largest property search engines with around 18 million listings available in more than 200 countries worldwide. HomeToGo integrates other listing platforms, including Airbnb, Vrbo, Booking.com, TripAdvisor, and Expedia. HomeToGo differs from Airbnb in a way that it does not list properties directly from owners. It is a metasearch engine that pulls listings from other vacation rental platforms. On the other hand, Airbnb is a marketplace where rental properties are directly listed by Airbnb owners or their property managers.

3. Booking.com

Booking.com is a close competitor of Airbnb. It is an online travel agency that lists hotel accommodations as well as vacation rentals. It features over six million private homes and apartments for rent on its platform. Booking.com does not exclusively list vacation rentals. It was originally created as a search engine for hotels. With Booking.com, short-term rentals are listed together with hotel inventory. On the other hand, while Airbnb also lists a few hotels, the Airbnb market mostly covers short-term rentals.

4. Trip.com

Trip.com is a Singapore-based online travel agency with around 400 million users worldwide. It features over 1.2 million hotels and vacation rentals in 200 countries and regions. Trip.com differs from Airbnb in a way that it has a large user base in Asia. This is a good option if you want to target international travelers as well. Also, while Airbnb allows stays over 30 days, properties listed on Trip.com can only be booked for a maximum stay of 30 days.

5. FlipKey

FlipKey is another Airbnb alternative that offers around 300,000 vacation rentals around the world. While Airbnb has a variety of listings, including entire units, cabins, and single or shared rooms, FlipKey only lists apartments, villas, and beaches. Similar to Vrbo, it does not offer shared room listings.

You may also want to consider having your property listed with Airbnb Plus instead of just the regular Airbnb. According to Airbnb’s website, Airbnb Plus hosts provide a higher level of hospitality on top of an extraordinary space. If you believe your property can meet the high standards required for Plus certification, getting listed with Airbnb Plus can add more value to your business. However, Airbnb Plus is currently open to certain Airbnb locations

Are you ready to search for the most exceptional property for your next Airbnb investment? Mashvisor’s investment property search can help you find the perfect investment property based on your budget and location preference. 

How to Analyze the Airbnb Rental Market

Before you invest in short-term rentals, you should first conduct an in-depth Airbnb market analysis to ensure that the property can become a profitable investment. You need to find critical information about a particular property, like the Airbnb cash on cash return, cap rate, occupancy rate, and more. However, finding the most accurate and up-to-date data for Airbnb properties can be laborious and time-consuming. 

To be successful in the Airbnb business, you also need to analyze your competitors and understand the Airbnb market trends. You can do this by using market research tools from trusted real estate data analytics platforms like Mashvisor. Aside from providing access to thousands of available listings, Mashvisor features a unique application programming interface that collects data from several public sources. 

With Mashvisor, you can easily access the most current Airbnb market research to help you determine whether or not a certain property will be a good investment. Mashvisor made it easy for investors to access the real estate market analysis and data. You just need to enter your preferred location, choose a property that interests you, click on it, and you will see an overview of the property analytics, neighborhood analytics, and rental comps. You will also find a comparison of different rental strategies and insights. 

Mashvisor also provides a mortgage calculator and rental property calculator where you can input your financing information and custom expenses. This allows you to get a more personalized computation of the property’s potential income. With Mashvisor’s comprehensive Airbnb analytics, you will gain a deeper understanding of the Airbnb market so you can use it to your advantage.

How to Analyze the Airbnb Rental Market

Mashvisor’s Investment Property Calculator can help you analyze the profit potential of a property listing if it was used as an Airbnb rental.

Top 10 Airbnb Markets

If you’re ready to become an Airbnb host, we have gathered the top 10 Airbnb markets based on Airbnb cash on cash return. Cash on cash (CoC) return is the ratio of the net operating income to the total cash investment. This will vary depending on how you financed your purchase—whether you purchased your property in cash or with a mortgage. 

We use the average cash on cash return that short-term rentals generate in a city as a basis for choosing the top Airbnb markets because CoCs determine whether the property is profitable or not. The higher the cash on cash return, the more profitable the investment property. Good cash on cash return is usually 8% or higher. However, in some areas, CoCs ranging from 2% to 3% or higher are acceptable.

Mashvisor gathers its Airbnb market data from the Airbnb website based on historical and active listing information. Using our unique algorithms and analysis, we are able to make our calculations and projections.

According to Mashvisor data as of April 2022, the top 10 cities for Airbnb rentals based on cash on cash return are:

1. Destrehan, LA

  • Number of Airbnb Listings: 7
  • Monthly Airbnb Rental Income: $4,260
  • Airbnb Cash on Cash Return: 9.62%
  • Airbnb Cap Rate: 9.87%
  • Airbnb Daily Rate: $95
  • Airbnb Occupancy Rate: 63%
  • Number of Listings for Sale: 5
  • Median Property Price: $325,400
  • Average Price per Square Foot: $134
  • Days on Market: 106
  • Walk Score: 8

2. New Berlin, WI

  • Number of Airbnb Listings: 5
  • Monthly Airbnb Rental Income: $2,326
  • Airbnb Cash on Cash Return: 9.62%
  • Airbnb Cap Rate: 10.14%
  • Airbnb Daily Rate: $468
  • Airbnb Occupancy Rate: 76%
  • Number of Listings for Sale: 10
  • Median Property Price: $362,940
  • Average Price per Square Foot: $182
  • Days on Market: 27
  • Walk Score: 64

3. Petersburg, IL

  • Number of Airbnb Listings: 5
  • Monthly Airbnb Rental Income: $3,729
  • Airbnb Cash on Cash Return: 9.60%
  • Airbnb Cap Rate: 9.92%
  • Airbnb Daily Rate: $319
  • Airbnb Occupancy Rate: 59%
  • Number of Listings for Sale: 5
  • Median Property Price: $221,640
  • Average Price per Square Foot: $106
  • Days on Market: 21
  • Walk Score: 63

4. Thomson, GA

  • Number of Airbnb Listings: 5
  • Monthly Airbnb Rental Income: $1,840
  • Airbnb Cash on Cash Return: 9.52%
  • Airbnb Cap Rate: 10.20%
  • Airbnb Daily Rate: $277
  • Airbnb Occupancy Rate: 49%
  • Number of Listings for Sale: 16
  • Median Property Price: $278,800
  • Average Price per Square Foot: $143
  • Days on Market: 58
  • Walk Score: 48

5. Corydon, IN

  • Number of Airbnb Listings: 7
  • Monthly Airbnb Rental Income: $1,795
  • Airbnb Cash on Cash Return: 9.28%
  • Airbnb Cap Rate: 9.95%
  • Airbnb Daily Rate: $100
  • Airbnb Occupancy Rate: 60%
  • Number of Listings for Sale: 5
  • Median Property Price: $281,860
  • Average Price per Square Foot: $176
  • Days on Market: 59
  • Walk Score: 60

6. Peninsula, OH

  • Number of Airbnb Listings: 16
  • Monthly Airbnb Rental Income: $5,180
  • Airbnb Cash on Cash Return: 9.27%
  • Airbnb Cap Rate: 9.48%
  • Airbnb Daily Rate: $300
  • Airbnb Occupancy Rate: 54%
  • Number of Listings for Sale: 7
  • Median Property Price: $359,855
  • Average Price per Square Foot: $197
  • Days on Market: 27
  • Walk Score: 32

7. Kingston, NH

  • Number of Airbnb Listings: 8
  • Monthly Airbnb Rental Income: $4,944
  • Airbnb Cash on Cash Return: 9.14%
  • Airbnb Cap Rate: 9.35%
  • Airbnb Daily Rate: $249
  • Airbnb Occupancy Rate: 70%
  • Number of Listings for Sale: 5
  • Median Property Price: $549,400
  • Average Price per Square Foot: $279
  • Days on Market: 62
  • Walk Score: 34

8. South Saint Paul, MN

  • Number of Airbnb Listings: 7
  • Monthly Airbnb Rental Income: $2,451
  • Airbnb Cash on Cash Return: 9.09%
  • Airbnb Cap Rate: 9.66%
  • Airbnb Daily Rate: $114
  • Airbnb Occupancy Rate: 62%
  • Number of Listings for Sale: 21
  • Median Property Price: $282,660
  • Average Price per Square Foot: $159
  • Days on Market: 58
  • Walk Score: 13

9. Mascotte, FL

  • Number of Airbnb Listings: 10
  • Monthly Airbnb Rental Income: $5,090
  • Airbnb Cash on Cash Return: 9.07%
  • Airbnb Cap Rate: 9.26%
  • Airbnb Daily Rate: $317
  • Airbnb Occupancy Rate: 55%
  • Number of Listings for Sale: 6
  • Median Property Price: $350,659
  • Average Price per Square Foot: $210
  • Days on Market: 52
  • Walk Score: 27

10. Calera, AL

  • Number of Airbnb Listings: 5
  • Monthly Airbnb Rental Income: $3,589
  • Airbnb Cash on Cash Return: 9.03%
  • Airbnb Cap Rate: 9.30%
  • Airbnb Daily Rate: $135
  • Airbnb Occupancy Rate: 63%
  • Number of Listings for Sale: 17
  • Median Property Price: $380,924
  • Average Price per Square Foot: $157
  • Days on Market: 59
  • Walk Score: 48
Top 10 Airbnb Markets

Mashvisor’s Investment Property Search and real estate heatmap shows the number of properties for sale in Calera, AL, as well as the areas in the city that have the highest Airbnb cash on cash return.

Subscribe to Mashvisor to Invest in Airbnb

When it comes to investing in vacation rentals, location is a key factor that can either make or break your investment. It’s essential to know about the travel trends in a certain area and prioritize the most frequented tourist destinations. In addition, it’s equally crucial to dig deeper and understand the Airbnb market trends in a particular city before you decide to buy an investment property.

Mashvisor can help you find the most valuable properties for short-term rental investing. Our database contains thousands of available listings from several MLS sources. With our in-depth Airbnb market research and analysis, you will get a general overview of how a particular property will perform depending on your preferred rental strategy.

Subscribe to Mashvisor to start searching for the best Airbnb properties in your chosen location. Click here to start a free trial, or schedule a demo




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