AirDNA Announces Top 25 Best Places to Invest in Vacation Rentals in 2023
AirDNA, a leading short-term rental (STR) data and analytics provider, today released its 2023 Best Places to Invest report, guiding investors toward opportunities for growth in th e maturing STR 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 STR revenues and growing demand.
"Current market conditions are complex, but it can be the right time to invest in the right property, in the right market," said Jamie Lane, AirDNA's VP of Research. "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:
- STR demand tracking occupancy and booked listing change
- Revenue growth per property over the last 12 months
- Investability score showing yield relative to home values for comparable properties
- STR 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 U.S. surpassing a record 1.3 million. This increased competition means 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:
- Fairbanks, AK
- Evansville, IN
- Rockford, IL
- Springfield, IL
- Burdett, NY
- Williamstown, KY
- New Haven, CT
- Ellsworth, ME
- Cheboygan, MI
- North Woodstock, NH
"STR success is the product of careful investing, scaling, and pricing—all hinging on having the best data," said AirDNA's CEO, Demi Horvat. "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 Rentalizer™ report should be as vital to any investment plan as getting a good agent."