The rise in popularity of homesharing services like Airbnb is allowing people around the world to make some extra cash by renting out all or parts of properties they own. But as it turns out, exactly how much money you can earn by participating in the homesharing economy is largely related to that old real estate maxim: “Location, location, location.”
Homes in these cities get the big bucks on Airbnb
Airbnb has been tech’s most popular broker of short-stay rentals for more than a decade now. Since its 2007 inception, the $31-billion company has facilitated the hosting of more than 40 million guests in nearly 200 countries. But new data has revealed that some cities are far more lucrative for property owners than others.
We all know that mansions in California and New York likely fetch the top prices night after night, but homeowners can make the most on average in much more humble abodes in cities of various sizes across the United States, according to data released this week from Homes.com.
By subtracting the average daily mortgage cost from the average Airbnb rate, the Homes.com survey came up with which cities were the most profitable for homeowners. Topping the list is Virginia Beach, Virginia, where homeowners made an average of $183 a day.
Here are the top 10 most profitable cities for Airbnb homes
- Virginia Beach, Virginia — $183.33
- Bridgeport, Connecticut — $175.56
- Charleston, South Carolina — $161.50
- Albany, New York — $151.68
- Cape Coral, Florida — $149.59
- Akron, Ohio — $149.29
- Jacksonville, Florida — $147.07
- Philadelphia, Pennsylvania — $142.98
- Indianapolis, Indiana — $138.47
- Cleveland, Ohio — $138.30
The findings show that on average it is especially tough in California to make a big profit on Airbnb. San Jose homes yielded just a $19 profit over the average stay compared to other cities around the United States.
An Akron, Ohio homeowner would have to rent out their home just four days to cover their mortgage. On the flip side of the equation, it would take a homeowner in Santa Clara, California, about 27 days to cover their mortgage.
“By taking the median monthly mortgage payment in all of the cities included in our study and dividing it by the average nightly price of Airbnb rentals in those cities, we were able to find the cities where it would take the fewest and most nights of renting to cover your mortgage,” the analysis says.
Top 10 Airbnb cities ranked by how long it takes to pay your mortgage
- Akron, Ohio — 4.21 days
- Cleveland, Ohio — 4.54 days
- Virginia Beach, Virginia — 5.13 days
- Indianapolis, Indiana — 5.24 days
- Cincinnati, Ohio — 5.39 days
- Columbia, South Carolina — 5.49 days
- Greensboro, North Carolina — 5.59 days
- Knoxville, Tennessee — 5.60 days
- Louisville, Indiana — 5.74 days
- Albany, New York — 5.82 days
A summation of the research indicates that many renters who use Airbnb want to be near big cities, although not necessarily in them. If you plan to use your home on Airbnb, these figures should give you an idea of what to expect profit-wise.