Last updated: October 2024
The West, with its vast landscapes ranging from lush coastal regions to stark desert beauty, holds a treasure trove of opportunities for Airbnb and short-term rental investors. This dynamic region is renowned for its diverse cities, each offering unique cultural experiences, natural wonders, and vibrant communities that attract millions of visitors each year.
As we embark on exploring the Best Airbnb Rental Markets in the West, as per data available in November 2024, we aim to uncover the destinations that not only captivate the hearts of travelers but also present lucrative investment opportunities for those looking to dive into the realm of short-term rentals. From the sun-soaked valleys of California to the serene deserts of Nevada and beyond, the Western United States is ripe with potential for those willing to explore its rich and varied rental market landscape.
1. Coachella, CA
The vibrant city of Coachella, CA, has seen a 4.10% increase in home values over the past year, with the average price now standing at $412,875.
This market thrives with an average daily rate (ADR) of $701.10 and an occupancy rate of 43%, translating to an impressive annual revenue of $94,400 from just 433 active rentals. The average gross yield here is a remarkable 22.86%, despite a higher property tax rate of 1.04%. With homes spending an average of 48 days on the market and a competitive score of 58, Coachella proves to be a hot spot for investors, especially during its famed music festival season.
Check out our Coachella Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
2. Yucca Valley, CA
In Yucca Valley, CA, home values have slightly decreased by -1.30%, with the average price at $364,774. The town boasts an ADR of $333.10 and an occupancy rate of 52%, generating annual revenues of $57,300 from 1,104 active rentals.
Despite a high property tax rate of 2.19%, Yucca Valley offers an average gross yield of 15.71%, with properties spending an average of 59 days on the market, signaling a competitive market with potential for growth.
Check out our Yucca Valley Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
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3. Joshua Tree, CA
Joshua Tree, CA, sees the most significant decrease in home values at -10.20%, setting the average price at $385,941. Despite this, the market is vibrant with an ADR of $314.60 and an occupancy rate of 54%, bringing in annual revenues of $56,200 from 1,362 active rentals.
The average gross yield here is 14.56%, with a property tax rate of 1.03%. Homes in Joshua Tree spend an average of 106 days on the market, indicating a unique investment opportunity in a market known for its natural beauty and artistic community.
Check out our Joshua Tree Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
4. Island Park, ID
Island Park, ID, offers a contrasting investment landscape with a -3.10% change in home values, setting the average price at $504,860. This market, however, shines with an ADR of $445.10 and a high occupancy rate of 55%, leading to annual revenues of $68,800 from 592 active rentals.
The gross yield stands at 13.23%, attractive especially given Idaho’s lower property tax rate of 0.43%. The market’s slower pace, with homes averaging 181 days on the market, highlights its niche appeal as a tranquil retreat.
Check out our Island Park Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
5. Palm Springs, CA
Palm Springs, CA, has experienced a -0.70% change in home values, with the average price now at $655,035.
This iconic desert oasis commands an ADR of $532.40 and an occupancy rate of 54%, resulting in annual revenues of $104,700 from 4,057 active rentals. With an average gross yield of 15.98% and a property tax rate of 1.20%, Palm Springs remains a prime location for investors, offering a blend of luxury and leisure with an average market competitiveness score of 38.
Check out our Palm Springs Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
