Florida? Hawaii? California? Georgia?

If you’re looking for a great vacation rental you might want to check out this new report Best Places to Invest in Vacation Rentals that provides a playbook for the most profitable investments within a thriving industry which generated an estimated $113 billion in annual revenues in 2021. This marked the best year on record for global short-term rental performance, up 5.3% since 2019.

“Investors need a clear framework for finding a great opportunity, and that’s what this report provides, whether the key to success is a particular neighborhood, bedroom count, or a stand-out amenity,” said Jamie Lane, AirDNA vice president of research in a news release. “Staying informed on trends as the travel industry begins to normalize will allow investors to make the right decisions and optimize their revenues, in 2022 and beyond.”

Using the most extensive and granular dataset in the industry to consider 265 markets in the United States, AirDNA’s report ranks the top 25 based on its proprietary AirDNA Investor Score to unveil high-performing, growing markets that provide exceptional returns. According to the news release, the score is based on a detailed analysis of multiple metrics, grouped into three key pillars:

  • Rental demand taking into account occupancy and supply increases
  • Revenue growth over the last twelve months compared to the twelve prior
  • Investability score showing yield after property purchase and operating costs

Small and mid-sized cities are leading the investment opportunities with a 55% increase in their revenue potential. Some firm favorites from last year remain in the top 25, such as popular Florida beach destinations and Californian nature escapes, while this year’s top 10 is shaken up by fly-to destinations, as guests are eager to visit HawaiiAlaska, and everywhere in between.

AirDNA’s Top 10 Places to Invest in 2022:

  1. Maui, HI
  2. Kenai Peninsula, AK
  3. Chattanooga, TN
  4. Gulfport/Biloxi, MS
  5. Slidell, LA
  6. Crystal River, FL
  7. Charleston, SC
  8. Joshua Tree, CA
  9. Galena, IL
  10. Buffalo, NY

To investigate further the real potential of any opportunity, Investors can get a detailed report on any address they’re looking to invest at by using AirDNA’s Rentalizer tool. “We want to give investors, sellers, and brokers full control of their decision by revealing the true value of the property as a vacation rental,” said AirDNA CEO Scott Shatford, “Our new upgrades to the Rentalizer allow users to see the vacation rental value appreciation over time and track the history of the home’s revenue estimate, providing invaluable insights on where to buy.”

Source: AirDNA