Based on a recent study conducted by Clever Real Estate in collaboration with Rabbu.com, Florida emerges as the hotspot for short-term rental investments in the United States. Topping the list is Tampa, followed closely by Orlando and Jacksonville, solidifying the Sunshine State’s dominance in this lucrative market.
The study, which analyzed various metrics including median home prices, occupancy rates, and changes in property values, highlights Tampa’s exceptional performance with a remarkable 71.6% increase in property values over the past five years. With triple the median number of property listings and a robust Airbnb occupancy rate, Tampa boasts an average annual Airbnb revenue of $52,705.
Here are the top 10 U.S. cities for short-term rental investments:
- Tampa, FL
- Orlando, FL
- Jacksonville, FL
- Boston, MA
- Miami, FL
- Buffalo, NY
- Columbus, OH
- Chicago, IL
- Providence, RI
- Kansas City, MO
Conversely, San Jose, California, emerges as the riskiest short-term rental market, with exorbitant median home sale prices and significantly fewer listed properties compared to the median. With just 1,296 listed properties, San Jose presents the lowest return on investment score in the nation.
The 10 worst short-term rental markets in the U.S. include:
- San Jose, CA
- Birmingham, AL
- San Antonio, TX
- Houston, TX
- Sacramento, CA
- Raleigh, NC
- Riverside, CA
- San Francisco, CA
- Oklahoma City, OK
- Pittsburgh, PA
Despite the allure of short-term rentals, a survey of 1,000 Americans conducted by Clever reveals concerns regarding misleading property descriptions, lack of on-site assistance, and safety issues. While 76% view Airbnbs positively and perceive them as more comfortable than hotels, only 44% consider them safer, reflecting growing apprehension amidst rising crime rates.
Emir Dukic, founder of Rabbu, notes the sustained interest in short-term rental investments, emphasizing that while returns may be slightly lower than in previous years, prime properties in top markets consistently yield double-digit returns.