Tags: texas | nation | airbnb | rental | profitability

Texas Leads Nation in Airbnb's Rental Profitability

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Mohamed Ahmed Soliman | Dreamstime.com

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Friday, 15 February 2019 01:16 PM Current | Bio | Archive

The state of Texas made up nine of the top 50 best cities to buy property and rent through Airbnb followed by Florida and California, according to a new report.

“It’s a reverse migration,” said Collin Czarnecki, a researcher with the real estate exchange IPX1031.

Analysis included median home price, mortgage payment, average Airbnb rental costs and occupancy rates.

“AirBnB is catching on in Southern states like Texas outside of major metropolitan areas,” Czarnecki told Newsmax Finance.

The IPX1031 study ranked cities across the U.S. based on their profitability in the Airbnb marketplace. For example, nabbing the No. 6 spot is Grand Prairie. Located 15 minutes outside of Dallas, potential annual profitability is $24,432 with an average daily AirBnB rate of $172.

“Homes in Grand Prairie are not very far from the city,” said Czarnecki.

Fifteen universities are within 50 miles of Grand Prairie, including the University of Texas campuses of Arlington and Dallas.

Within the Houston metropolitan area, Pasadena, Texas ranked third on the list of Best Cities to Buy an AirBnB Investment Property with an average daily rental rate of $180 and potential annual earned income of $29,988.

“These communities have to strike a balance,” Czarnecki said. “Because you have cash flow coming from these travelers but it’s cutting into the community at large with some noise complaints or neighbors not wanting transients in their community, it’s hard to say what that balance will look like in the future.”

The analysis further found that Moreno Valley, California is where investors stand to earn the most with a whopping $33,720 in potential annual profit and an average daily rental rate on Airbnb of $226.

“Moreno Valley is located an hour outside of Los Angeles and is near a military base,” said Czarnecki. “Compared to the rest of California, Moreno Valley is a more affordable area in terms of purchasing a home coupled with the high occupancy rate.”

The 8 cities in Florida include Miami, Jacksonville, Fort Lauderdale and Tallahassee.

“AirBnB has forced hotels to step up their game in terms of what they are offering in amenities and pricing,” Czarnecki said. “It has definitely disrupted the hospitality industry.”

AirBnB is becoming so successful that some small towns are cracking down on how many rentals there are within a zip code.

“These unregulated Airbnb short-term rentals are skirting taxes and health and safety regulations, fracturing neighborhoods, and reducing the availability and affordability of housing for permanent residents in cities across the country,” said Lauren Windsor of AirbnbWATCH, a national coalition representing community, housing, labor, equality, disability and hospitality groups. “It’s time for state and city leaders to step in and put their constituents first not commercial investors on Airbnb.”

The study analyzed 50 cities with populations over 150,000.

“This study confirms why leaders from major cities across the country like New York, Boston, Los Angeles and Washington, D.C. have enacted short-term rental laws to protect affordable housing and hold short-term rental platforms like Airbnb accountable,” Windsor told Newsmax Finance.

Juliette Fairley is an author, lecturer and TV host based in New York.

© 2019 Newsmax Finance. All rights reserved.

   
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The state of Texas made up nine of the top 50 best cities to buy property and rent through Airbnb followed by Florida and California, according to a new report.
texas, nation, airbnb, rental, profitability
512
2019-16-15
Friday, 15 February 2019 01:16 PM
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