Fallen Leaf Lake, South Lake Tahoe

AirDNA releases Best Places to Invest in US Vacation Rentals report

US / Barcelona: Short-term rental industry data provider AirDNA has released a new report revealing the Best Places to Invest in US Vacation Rentals in 2020, deep-diving into analysis on how Covid-19 has changed the US vacation rental investment landscape.

The report looked into rental demand, revenue growth and investability metrics to gauge the true, updated investment potential of each market. These metrics were combined together to create the ultimate proprietary ranking metric, the AirDNA Investor Score.

AirDNA’s findings highlight that the returns remain strong but most of the markets on this year’s list are entirely new as the travel trends are changing dynamically amidst the ongoing pandemic.

The markets were categorised by the number of active properties and are divided into three different groups:

  • Up-and-coming markets – between 25 and 100 rentals, these off-the-beaten-path spots have flown under the radar until just recently – cities throughout the Appalachian mountains, Minnesotan lakes, northern California, and upstate New York.

  • Mid-sized markets – between 100 and 1000 rentals, these locations spread across the southeast California desert, nature spots in Arizona, and many towns throughout the Midwest.

  • Large markets – with over 1000 rentals, many of these top destinations like South Lake Tahoe or Gatlinburg have been on the vacation rental investment radar for quite some time and are proving to be resilient even in the face of the pandemic.

As the situation continues to evolve, some of the investment portfolios are still struggling while others are seeing an unprecedented surge in booking demand. Most of this year’s list’s top locations preserve quite modest home values, and with record-low mortgage rates, vacation rentals represent an exciting opportunity for aspiring investors.

To read the full report, visit the AirDNA blog.

Meanwhile in August, AirDNA collaborated with another data provider, STR, on a report which highlighted how short-term rentals were weathering the pandemic better than hotels in 27 markets. The report compared the impact of the coronavirus crisis on hotels and short-term rentals from January 2019 through to 27 June 2020.

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