DENVER, May 18, 2023 /PRNewswire/ -- AirDNA, the leading provider of short-term rental (STR) data and analytics, answers the question "Where should I invest in vacation rentals?" with its new Ranked by AirDNA series, providing monthly rankings for U.S markets to equip investors with revenue-maximizing strategies. Amid a challenging investment landscape, the series ranks markets based on often-overlooked criteria to help STR investors make informed decisions. After kicking off with a list of the best markets for cabins, urban apartments, and beach houses, the newest instalment turns to the top 30 hottest cities where supply is growing right now.
AirDNA Map Showing the Hottest Cities for U.S. Short-Term Rental Investment in 2023
"There are two major investment theses: either you follow the crowd's tried-and-tested theory, or you carve out a more unusual investment path, using your own data analysis," commented Jamie Lane, AirDNA's Chief Economist, during their STR Data Lab podcast. "Broadly, you can get average returns following the trend, or outsized returns with your own theory, but the risk level varies."
Despite the ever-growing demand for vacation rentals, supply growth has cooled slightly in spring 2023, according to AirDNA's latest monthly market review. This comes as a relief to hosts worried about falling occupancy caused by rapid listing expansion last year: with elevated interest rates and occupancy below 2021's record highs—though above 2019—, supply may follow a more sedate path this year.
The Hottest Cities are ranked according to supply growth, pricing growth, and, for the first time, search interest on AirDNA's Rentalizer™. The tool received nearly two million searches in the U.S. in Q1 2023, proving its value for investors looking to estimate their revenue and underwrite their purchases.
The list trends toward southern, especially Texan, cities. New investment in jobs and relatively low house prices have made these cities a great option for those looking to move permanently. University cities with walkable centers like Charlotte, NC, are popular with families, proving that STR supply often follows residential investment.
"AirDNA equips investors with the most accurate data to make confident, informed decisions," commented Demi Horvat, AirDNA's CEO, "These rankings are just a sample of the millions of data points we provide for those navigating the investment landscape."
About AirDNA AirDNA helps you make smarter decisions in any market or economic climate. For every short-term rental question, AirDNA data has the answer.
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