Last updated: January 2025
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 January 2025, 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. Yucca Valley, CA
In Yucca Valley, CA, home values have experienced a slight increase of 0.99%, with the average home price now at $362,933. The town boasts an impressive Average Daily Rate (ADR) of $369.84 and an occupancy rate of 55.97%, generating annual revenues of $62,092 from 612 active rentals.
With a property tax rate of just 0.78%, Yucca Valley offers an attractive gross yield of 17.11% and a cap rate of 10.27%. This market presents a compelling opportunity for short-term rental investors, combining steady growth potential with a high return on investment.
Check out our Yucca Valley STR Market Insights for a deeper dive into our analysis of this short-term rental market.
2. North Las Vegas, NV
In North Las Vegas, NV, home values have risen by an impressive 5.35%, with the average home price now at $406,093. The city boasts a remarkable Average Daily Rate (ADR) of $581.73 and an occupancy rate of 51.73%, generating annual revenues of $65,230 from 461 active rentals.
With a low property tax rate of 0.57%, North Las Vegas offers an attractive gross yield of 16.06% and a cap rate of 9.64%. This market demonstrates strong growth potential and solid returns, making it an excellent opportunity for short-term rental investors seeking to maximize their investments.
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3. Joshua Tree, CA
Joshua Tree, CA, has experienced a home value decrease of -4.90%, with the average home price now at $363,447. The market remains strong, with an Average Daily Rate (ADR) of $381.59 and an occupancy rate of 55.04%, generating annual revenues of $54,028 from 749 active rentals.
With a gross yield of 14.87% and a cap rate of 8.92%, combined with a property tax rate of 0.78%, Joshua Tree continues to offer solid investment potential.
Known for its stunning natural landscapes and vibrant artistic community, this market presents an excellent opportunity for short-term rental investors looking to tap into a unique and growing destination.
Check out our Joshua Tree STR Market Insights for a deeper dive into our analysis of this short-term rental market.
4. Lake Arrowhead, CA
Lake Arrowhead, CA, offers a unique investment opportunity with a -3.98% change in home values, setting the average home price at $564,009. This market excels with an Average Daily Rate (ADR) of $339.94 and an impressive occupancy rate of 61.40%, leading to annual revenues of $68,161 from 833 active rentals.
With a gross yield of 12.09% and a cap rate of 7.25%, combined with a property tax rate of 0.78%, Lake Arrowhead remains a solid choice for short-term rental investors.
Known for its serene mountain setting and year-round appeal, this market provides an attractive option for those looking to invest in a peaceful getaway destination.
Check out our Lake Arrowhead STR Market Insights for a deeper dive into our analysis of this short-term rental market.
5. Palm Springs, CA
Palm Springs, CA, has experienced a -1.86% change in home values, with the average home price now at $640,626.
This iconic desert destination commands an impressive Average Daily Rate (ADR) of $509.87 and an occupancy rate of 47.14%, resulting in annual revenues of $69,331 from 2,628 active rentals. With a gross yield of 10.82% and a cap rate of 6.49%, combined with a property tax rate of 0.94%, Palm Springs remains an attractive option for investors.
Offering a blend of luxury and leisure, this market continues to shine as a sought-after location for short-term rental investments.
Check out our Palm Springs STR Market Insights for a deeper dive into our analysis of this short-term rental market.
