AirDNA reveals the 25 best places to invest in US rentals in 2022

US: Short-term rental data and analytics provider, AirDNA, has released its annual report which ranks the best places to invest in vacation rentals in the United States, providing a playbook for the most profitable investments within a thriving industry which generated an estimated $113 billion in annual revenues in 2021.

It marked the best year on record for global short-term rental performance, up 5.3 per cent since 2019.

Jamie Lane, VP of research at AirDNA, said: “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 neighbourhood, bedroom count or a stand-out amenity. Staying informed on trends as the travel industry begins to normalise will allow investors to make the right decisions and optimise their revenues, in 2022 and beyond.”

Using its dataset 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. 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 per cent increase in their revenue potential. Some firm favourites from last year remain in the top 25, such as popular Florida beach destinations and Californian nature escapes, while this year’s top ten is shaken up by fly-to destinations, as guests are eager to visit Hawaii, Alaska and everywhere in between.

AirDNA’s top ten places to invest in 2022 are:

1. Maui, Hawaii

2. Kenai Peninsula, Alaska

3. Chattanooga, Tennessee

4. Gulfport/Biloxi, Mississippi

5. Slidell, Lousiana

6. Crystal River, Florida

7. Charleston, South Carolina

8. Joshua Tree, California

9. Galena, Illinois

10. Buffalo, New York

To see the full list of the 25 best places to invest in short-term rentals properties including key insights on each location, follow the link to the report here.

To investigate further the real potential of any opportunity, investors are also invited to use AirDNA’s Rentalizer tool to get a detailed report on any address they are looking to invest at.

AirDNA CEO Scott Shatford said: “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. 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.”

AirDNA data published last week also revealed how Los Angeles and Inglewood were reporting significant short-term rental booking surges ahead of the weekend’s Super Bowl LVI.