- Lesser-known cities are becoming more attractive for short-term rentals due to a significant increase in rental listings.
- Peoria, Illinois, is highlighted as a leading investment opportunity with an average revenue potential of $31,131 and a gross yield of 15.3%.
- Fairbanks, Alaska, offers high rental potential, with an average earning of $49,459 and a 66.5% occupancy rate.
- Demand for short-term rentals is growing in mid-sized cities and rural areas, providing a competitive edge over traditional hotels.
- Investors are encouraged to explore emerging markets for unique opportunities and lucrative returns.
Starting a short-term rental business in popular spots like Destin, Florida, or Vail, Colorado, might seem enticing, but a recent analysis reveals that lesser-known cities could be the ideal investment haven. According to a stunning report by AirDNA, small towns and rural areas are witnessing a 16% surge in rental listings, while mid-sized cities enjoy a 10.3% growth.
Peoria, Illinois, emerges as the shining star for short-term rental investment. Here, rental properties have an average revenue potential of $31,131, boasting a robust 15.3% gross yield. The city’s average occupancy rate rests at 58.9%, indicating a healthy demand that continues to increase. Peoria’s affordable living costs make it an appealing option for investors looking for strong returns without breaking the bank.
But Peoria isn’t alone in this race. Fairbanks, Alaska, stands out as another prime choice, with the potential to earn $49,459 on average per rental and an impressive occupancy rate of 66.5%. This city effortlessly attracts both tourists in the summer and industry workers year-round, ensuring a steady demand for short-term accommodations.
As travelers seek unique experiences away from bustling tourist traps, investors should look into these emerging hotspots. With minimal competition from traditional hotels and growing demand, the possibilities are endless. Explore new markets, and consider these cities to jumpstart your short-term rental success story!
Unlocking Hidden Gems: Top Short-Term Rental Markets for 2024
Starting a short-term rental business can be a lucrative venture, especially as trends shift toward lesser-known cities. While popular spots like Destin, Florida, and Vail, Colorado, might immediately come to mind, analytical insights indicate that hiding in plain sight are cities that offer higher returns on investments.
Key Insights and Trends
Recent data shows a significant uptick in rental activity in small towns and rural areas, with a reported 16% increase in listings, while mid-sized cities are enjoying a 10.3% growth. This indicates a shift in traveler preferences toward unique, localized experiences.
Peoria, Illinois, has emerged as a top contender for short-term rental investments, boasting an average revenue potential of $31,131 with an impressive 15.3% gross yield and a 58.9% occupancy rate. Its appeal lies not only in financial returns but also in its affordability, making it a perfect entry point for new investors.
Fairbanks, Alaska, presents another standout opportunity. Rentals here can yield an astonishing average revenue of $49,459, coupled with a 66.5% occupancy rate. This viability is attributed to a year-round influx of tourists and industry workers, ensuring demand across seasons.
Market Forecasts & Innovations
The trend toward lesser-known locales is expected to continue, with a projected increase in short-term rental listings by 12% over the next year, driven by tourism interest in unique, untouched locations. Technology is also playing a significant role; platforms are now offering sophisticated tools to analyze market trends, allowing investors to make data-driven decisions.
Pros and Cons of Investing in Lesser-Known Markets
– Pros:
– Lower competition than traditional tourist hotspots.
– Potential for higher yields and occupancy rates.
– Affordable property prices making investment more accessible.
– Cons:
– Potentially less predictable demand compared to established tourist destinations.
– Local regulations may be less developed, leading to sudden changes in law or market conditions.
Popular Use Cases for Short-Term Rentals
1. Seasonal Rentals for Events: Locations like Peoria and Fairbanks host various events year-round that can draw in travelers.
2. Corporate Housing: With an increasing number of remote jobs, many professionals are seeking short-term accommodations.
3. Adventure Tourism: Regions that offer unique outdoor activities or local culture can attract specific groups of travelers.
Frequently Asked Questions
1. What are the best cities for short-term rental investments in 2024?
Peoria, Illinois, and Fairbanks, Alaska, are leading candidates, with strong revenue potential and healthy occupancy rates.
2. How do the occupancy rates of lesser-known cities compare to popular tourist destinations?
While popular cities typically boast high occupancy rates during peak seasons, lesser-known cities often have more stable rates throughout the year due to diverse visitor demographics, such as industry workers and event attendees.
3. What should I consider regarding regulations when entering a new market?
Before investing, it’s crucial to research local regulations regarding short-term rentals. These can vary significantly between cities and may impact your rental strategy and profitability.
For more insights on short-term rental markets, check out AirDNA for in-depth data analysis and trends. You can also explore short-term rental best practices at VentureBeat, which covers the latest innovations and tips.
