AirDNA
Charlotte, North Carolina [Unsplash]

Ranked by AirDNA series to support US market investor choices

US: Short-term rental data and analytics provider, AirDNA, is answering the question “Where should I invest in vacation rentals?” with its new Ranked by AirDNA series, providing monthly rankings for US markets to equip investors with revenue-maximising strategies.

Amid a challenging investment landscape, the series ranks markets based on often-overlooked criteria to help short-term rental 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.

Jamie Lane, chief economist at AirDNA, said during the company’s STR Data Lab podcast: “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. 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 will come 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 United States in the first quarter of this year, proving its value for investors looking to estimate their revenue and underwrite their purchases.

The list trends toward southern, especially Texan, cities, with new investment in jobs and relatively low house prices making them a great option for those looking to move permanently. University cities with walkable centres such as Charlotte, North Carolina, are popular with families, proving that short-term rental supply often follows residential investment.

AirDNA CEO Demi Horvat said: “AirDNA equips investors with the most accurate data to make confident, informed decisions. “These rankings are just a sample of the millions of data points we provide for those navigating the investment landscape.”

Read the Hottest Cities list in full here.

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