Rockford, Illinois [Unsplash]

AirDNA releases 2023 Best Places to Invest report

US: Short-term rental data and analytics provider, AirDNA, has released its 2023 Best Places to Invest report, guiding investors toward opportunities for growth in a maturing industry.

The report highlights cities in the Midwest and Northeast as surprising hotspots for investment. While many of these locations may be unfamiliar to investors, they scored very highly on investability, as home prices have failed to keep pace with rising short-term rental revenues and growing demand.

Jamie Lane, VP of research at AirDNA, said: “Current market conditions are complex, but it can be the right time to invest in the right property, in the right market. AirDNA uses the most extensive and granular dataset in the industry to examine all destinations, helping investors to find gems for maximum yield.”

The AirDNA Investor Score™, used to rank the top 25 growth markets ripe for investment, combines four key pillars:

  • Short-term rental demand tracking occupancy for booked listings

  • Revenue growth per property over the last twelve months

  • Investability score showing yield relative to home values for comparable properties

  • Short-term rental regulations are incorporated for the first time, with help from Revedy’s Regulatory Risk Score

2022 saw huge growth in new supply, with listings in the United States surpassing a record 1.3 million. The increased competition means that investors must leverage data to find the most lucrative properties and contend with rising operational costs and widespread regulation.

AirDNA’s Top 10 Places to Invest in 2023:

  1. Fairbanks, Alaska

  2. Evansville, Indiana

  3. Rockford, Illinois

  4. Springfield, Illinois

  5. Burdett, New York

  6. Williamstown, Kentucky

  7. New Haven, Connecticut

  8. Ellsworth, Maine

  9. Cheboygan, Michigan

  10. North Woodstock, New Hampshire

AirDNA CEO Demi Horvat said: “Success in STR is is the product of careful investing, scaling, and pricing—all hinging on having the best data. AirDNA’s tools bring together the latest STR and housing data to give investors a full report on any property’s potential earnings.

“Running a Rentaliser™ report should be as vital to any investment plan as getting a good agent,” she added.

Read the full list and key insights on each location’s success at this link.

In addition to AirDNA’s Best Places to Invest report, the company will also host a free webinar on Tuesday 21 February on ‘How to Find Top Vacation Rental Markets & Properties in 2023’. VP of Research, Jamie Lane, will be discussing how AirDNA found the best places to invest, and how investors can find the most profitable properties for their needs.

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