Last updated: October 2024
California, with its diverse landscapes and vibrant cities, offers excellent opportunities for short-term rental investors. From scenic coastal destinations to bustling urban areas, these markets provide strong investment potential. Within this dynamic state lies a plethora of Airbnb rental markets, each offering a unique blend of charm, adventure, and relaxation.
From the sun-kissed shores of Southern California to the majestic redwoods of the north, California’s Airbnb rental markets cater to every taste and preference. Let’s embark on a journey through some of the best Airbnb rental markets in California, where hospitality meets innovation, and every stay promises memories to last a lifetime.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Coachella, California
Coachella, CA, known for its annual music festival, is also a gateway to Joshua Tree National Park, attracting a large number of tourists throughout the year.
Coachella has seen a 4.10% increase in home values, with the average price now at $412,875. This market thrives with an ADR of $462.00 and an occupancy rate of 51%, translating to an annual revenue of $74,207 from 433 active rentals. The gross yield here is 14.98%, with a cap rate of 8.99%.
Check out our Coachella Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market or visit Coachella Rental Regulations to explore the Airbnb laws and regulations.
2. Joshua Tree, California
Joshua Tree, CA, is renowned for its namesake national park, featuring unique desert landscapes and rock formations that draw outdoor enthusiasts year-round.
Joshua Tree has seen a notable decrease in home values by -10.20%, with the average price at $385,941. The market shows promise with an ADR of $189.00 and an occupancy rate of 55%, generating annual revenues of $43,880 from 1,362 active rentals. The gross yield stands at 9.47%, with a cap rate of 5.68%.
Discover more about investing in Joshua Tree through Chalet Intel.
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3. Palm Springs, California
Palm Springs, CA, known for its mid-century modern architecture and luxury resorts, is also a popular base for exploring nearby national parks like Joshua Tree.
Palm Springs has seen a slight increase in home values by 2.50%, with the average price at $550,000. The market thrives with an ADR of $350.00 and an occupancy rate of 48%, leading to an annual revenue of $61,000 from 800 active rentals. The gross yield here is 9.08%, with a cap rate of 7.00%.
For more insights into Palm Springs as a rental market, explore Chalet Intel.
4. Yucca Valley, California
Yucca Valley, CA, is a gateway to Joshua Tree National Park, offering unique desert landscapes and a variety of outdoor activities that attract visitors year-round.
Yucca Valley has seen a decrease in home values by -10.20%, with the average price at $358,000. The market shows promise with an ADR of $189.00 and an occupancy rate of 55%, generating annual revenues of $43,880 from 1,362 active rentals. The gross yield stands at 10.50%, with a cap rate of 5.68%.
Discover more about investing in Yucca Valley through Chalet Intel. It includes a calculator, regulation overview, and much more.
5. Big Bear Lake, California
Big Bear Lake, CA, is a popular destination for both summer and winter activities, offering attractions such as skiing, hiking, and water sports.
Big Bear Lake has seen a moderate increase in home values by 3.50%, with the average price at $450,000. The market thrives with an ADR of $250.00 and an occupancy rate of 50%, leading to an annual revenue of $50,000 from 2,000 active rentals. The gross yield here is 6.20%, with a cap rate of 4.00%.
For more comprehensive insights into Big Bear Lake as a rental market, explore Chalet Intel.
6. Lake Arrowhead, California
Lake Arrowhead, CA, known for its scenic mountain views and outdoor activities, is a popular getaway for visitors seeking a peaceful retreat.
Lake Arrowhead has seen a stable increase in home values, with the average price at $500,000. The market shows promise with an ADR of $265.00 and an occupancy rate of 45%, generating annual revenues of $49,500 from 1,000 active rentals. The gross yield stands at 5.30%, with a cap rate of 3.50%.
Discover more about investing in Lake Arrowhead through Chalet Intel. It includes a calculator, regulation overview, and much more.
