Charleston, South Carolina is the USA’s best city to be an Airbnb host
- Analysis reveals that Charleston, South Carolina offers the best combination of low house prices and high Airbnb revenue.
- It would take just over 4 years of Airbnb income to pay off a property purchase in Charleston, South Carolina compared to just under 24 years in Newark, New Jersey.
- Newark, Los Angeles, and Honolulu are the USA’s least profitable cities to be an Airbnb host.
A new study has revealed that Charleston, South Carolina is the most profitable city in the USA to be an Airbnb host.
The research by international payment experts XendPay on the 50 biggest metropolitan cities in the USA analysed data from AirDNA and Zillow to find which USA city offers the best combination of low property prices and high revenue from renting out via Airbnb.
It revealed that it would take just 4 years to pay off the median house price in Charleston, South Carolina ($193,491) based on the average monthly revenue of $3,693 an Airbnb in the city generates. As a result, the South Carolina city tops the list, offering the best combination of low property prices and high revenue.
Virginia Beach came in second, with an average of $4,568 in monthly Airbnb revenue taking 5 years to pay off the city’s median property price, which is $293,818. In addition, a high occupancy rate of 77% over the past 12 months makes the popular beach city highly cost-effective for hosts.
Holidaymakers can expect to pay on average $325 per night for a stay in a Virginia Beach Airbnb, the country’s priciest city, compared to $103 a night in Cheyenne, Wyoming, the lowest rate in the USA. As a result, Virginia Beach is the second most profitable city in the US to be an Airbnb host.
Nashville in Tennessee was the third most profitable city to be an Airbnb host. With a monthly revenue rate of $2,758 it would take almost 6 years to pay off the city’s median property price of $192,275.
Albuquerque has the highest occupancy rate per year (83%), followed by Portland and Denver both on 81%, and Salt Lake City with a 79% occupancy rate.
In the last year, Airbnb gained 193 million bookings despite the pandemic, highlighting how useful private rentals are for holidaymakers. The rental giants also earned $3.4 billion in 2020 in revenue as a result.
Commenting on the study, a spokesperson for XendPay said: “The demand for domestic travel has risen dramatically in the last year amid the pandemic, showing that the private holiday rental business is an area of interest for investment. With the relaxation of restrictions in the USA, it will be interesting to see how USA Airbnb bookings compete with the option of travelling abroad.”
Top five best cities to be an Airbnb host, by XendPay
| Overall rank | CITY | MONTHLY REVENUE (AIRDNA) | OCCUPANCY RATE PER YEAR (JUN. 2021) (AIRDNA) | MEDIAN HOUSE PRICE DEC. 2020 (ZILLOW) | ACTIVE RENTALS (AIRDNA) | Years of Airbnb revenue required to cover property price |
| 1 | Charleston, SC | $3,693 | 71% | $193,491 | 1,959 | 4 |
| 2 | Virgina Beach | $4,568 | 77% | $293,818 | 2,014 | 5 |
| 3 | Nashville | $2,758 | 55% | $192,275 | 5,993 | 6 |
| 4 | Little Rock | $1,625 | 71% | $131,837 | 304 | 7 |
| 5 | Louisville | $1,857 | 58% | $150,918 | 1,545 | 7 |
New York City has 19,301 active rentals, making it the city with the most Airbnb’s in the USA. This is more than double of Los Angeles, the city with the second highest active rentals of 9,563. Despite the high number of rentals, New York City ranks 43rdof the 50 cities for profitability.
Whilst Honolulu offers beautiful scenery for Airbnb’s, it has 5,204 active rentals – the tenth highest on the list, along with a relatively low daily rate of $180 it becomes the 3rd least profitable city in the USA to own an Airbnb.
Newark ranks as the least profitable city to buy an Airbnb in the United States. It would take a host 24 years to earn the money covering the cost of their property. The Airbnbs in the city have an occupancy rate of 50% and the median house price is $346,368 – the ninth highest price on the list.
The analysis was conducted by XendPay, which is one of the leading international payment providers, helping businesses and individuals to streamline their bank-to-bank transfers with smart global payment solutions.
Top five worst cities to be an Airbnb host, by XendPay
| Overall rank | CITY | MONTHLY REVENUE (AIRDNA) | OCCUPANCY RATE PER YEAR (JUN. 2021) (AIRDNA) | MEDIAN HOUSE PRICE DEC. 2020 (ZILLOW) | ACTIVE RENTALS (AIRDNA) | Years of Airbnb revenue required to cover property price |
| 46 | Boston | $2,010 | 56% | $439,541 | 1,465 | 18 |
| 47 | Seattle | $1,800 | 74% | $431,487 | 4,535 | 20 |
| 48 | Honolulu | $2,395 | 77% | $646,733 | 5,204 | 23 |
| 49 | Los Angeles | $2,042 | 63% | $579,332 | 9,563 | 24 |
| 50 | Newark | $1,218 | 50% | $346,368 | 749 | 24 |
Story Credir: www.xendpay.com
Charleston Daily
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Perhaps you may be able to assist me. I have a house on James Island that I am interested in leasing to an investor for use as an airbnb. Do you know of investors who may be interested in this business opportunity? If so, please provide their names and contact information and/ or ask them to reach out to me.
Thank you for your assistance.
Ada Watson-White
Hi! My name is Chelsey! I was born and raised in this beautiful city of Charleston SC. I am a 40 year old woman who has 9 years experience in both SC real estate sales (residential) as well as 5 years in property management. The popularity among Airbnb customers have grown tremendously within the past couple years and have found it to be a personal interest having been a host and a guest in the past! I have many ideas I can share with you. Please feel free to email me anytime at chelseybri38@gmail.com and I will surely look forward to meeting you. Thank you for your time.