6 Best Places To Buy AirBnB in 2023 (U.S. & Abroad)

In the dynamic world of property investment, Airbnb continues to stand out as a lucrative opportunity for many investors.

As we dive into 2023, the landscapes of travel and real estate are rapidly evolving, thanks in part to global economic recoveries, shifting travel patterns, and emerging markets. Identifying the right location for an Airbnb investment has become more paramount than ever.

From trending U.S. destinations that promise steady guest flow to international hotspots offering unique guest experiences, this article will spotlight the XX best places to buy an Airbnb property this year. We’ll delve into the factors making these locations prime for investment and what potential investors should know. Strap in for a journey across the best Airbnb destinations of 2023.

Our Criteria For The Best Places to Buy AirBnB Property in 2023

In the realm of real estate and short-term rentals, location remains paramount. But when determining the best places to invest in Airbnb properties in 2023, it’s essential to dive deeper than just popularity. Here are the crucial criteria we used to curate our top destinations:

A. Tourism Popularity & Growth

Significance: A consistent flow of visitors is vital to ensure your Airbnb has regular bookings. Locations that are gaining traction as new tourist hotspots or have maintained their appeal over the years are ideal choices.

Evaluation Methods: Examining tourism statistics, upcoming events, and new attractions or infrastructural developments that might increase visitation.

B. Airbnb Regulatory Environment

Significance: The ease or difficulty of operating an Airbnb can largely depend on local regulations. Cities with clear, stable, and favorable short-term rental laws tend to be better investments than places with ambiguous or unfriendly rules.

Evaluation Methods: Researching local laws and regulations, speaking with local real estate agents and other Airbnb hosts, and staying updated on proposed legislative changes.

C. Return on Investment (ROI) Potential

Significance: Beyond the purchase price of a property, potential investors should consider costs like maintenance, management, and local taxes. A good investment location will offer a favorable balance between these expenses and potential rental income.

Evaluation Methods: Analyzing average nightly rates, occupancy rates, and comparing them to property and operational costs in the area.

D. Economic Stability and Forecast

Significance: Investing in regions with a stable economy is safer and often more profitable. Economic growth often correlates with increased tourism and a higher willingness to spend on accommodations.

Evaluation Methods: Reviewing economic reports, GDP growth rates, and any potential risks or upcoming economic events that might impact the destination.

E. Accessibility and Infrastructure

Significance: Locations with good accessibility—whether by plane, train, or car—often see more visitors. Additionally, well-developed infrastructure can make a guest’s stay more enjoyable, leading to better reviews and more bookings.

Evaluation Methods: Checking transport links, upcoming infrastructural projects, the quality of roads, public transportation, and the availability of essential amenities like hospitals, shopping centers, and entertainment hubs.

Best Places to Buy AirBnB in the U.S. in 2023

Here are the best places to buy AirBnB in the U.S. in 2023!

1. Austin, Texas

Overview and Key Attractions

In the heart of Texas lies Austin, a city that seamlessly merges the soul of live music with the pulse of tech innovation. Often dubbed the “Live Music Capital of the World,” Austin hosts a plethora of musical events, from intimate gigs in cozy bars to colossal festivals like South by Southwest (SXSW). Beyond music, Austin’s culinary scene, outdoor recreational activities, and its status as a tech hub draw visitors year-round.

Key Attractions:

• South by Southwest (SXSW): An annual conglomerate of film, interactive media, music festivals, and conferences.
• Barton Springs Pool: A natural spring that’s perfect for cooling off during the hot Texan summers.
• Texas State Capitol: An impressive structure, both in architecture and historic significance.
• 6th Street: Known for its many bars, clubs, and live-music venues, making it a nightlife hub.

Market Statistics

• Average Nightly Rate: $150 (as of 2022; subject to change)
• Occupancy Rate: Approximately 68% (as of 2022; again, this is a ballpark figure and can vary)

Local Regulations and Insights

While Austin has been relatively welcoming to Airbnb and short-term rentals, it hasn’t been without regulations. The city divides short-term rentals (STRs) into three types: Type 1 (owner-occupied), Type 2 (non-owner occupied), and Type 3 (multifamily). Type 2, in particular, has seen stricter regulations, especially in certain residential areas. It’s paramount for potential investors to be aware of zoning rules and obtain the necessary licenses.

Potential Challenges

• Growing Competition: With its rising popularity, more investors are eyeing Austin, making the market more competitive.
• Seasonal Variations: While events like SXSW can be highly profitable, there can be quieter seasons, making a consistent year-round income a bit challenging.
• Regulatory Changes: As with many cities, Austin’s stance on STRs can change, and staying updated on any regulatory shifts is crucial.

2. Nashville, Tennessee

Overview and Key Attractions

Nestled in the heart of Tennessee, Nashville reverberates with the timeless rhythms of country music, soulful southern vibes, and an unmistakably contemporary energy. Fondly known as “Music City,” Nashville offers more than just music; its rich history, vibrant arts scene, and rapidly expanding culinary landscape make it a diverse and appealing destination for tourists.

Key Attractions:

• Grand Ole Opry: The iconic stage that has seen the best of country music for decades.
• Country Music Hall of Fame: A museum dedicated to preserving the legacy and celebrating the icons of country music.
• Broadway Street: A lively strip known for honky-tonk bars, live music, and energetic nightlife.
• The Parthenon: A full-scale replica of the original Parthenon in Athens, standing as a centerpiece in Centennial Park.

Market Statistics

• Average Nightly Rate: $170 (as of 2022; subject to change)
• Occupancy Rate: Roughly 72% (as of 2022; this can vary based on numerous factors)

Local Regulations and Insights

Nashville has been adjusting its regulations surrounding short-term rentals over the years. By 2022, there were two primary permit types: owner-occupied and non-owner occupied. The latter has seen a cap on the number of permits issued in certain areas, especially in residential zones. It’s crucial for investors to familiarize themselves with these regulations and ensure their desired property aligns with zoning requirements.

Potential Challenges

• Competition and Saturation: Nashville’s allure means that many investors have already set their sights on the city, increasing competition and potentially leading to market saturation.
• Seasonal Fluctuations: While the city sees year-round tourists, certain events, like the CMA Music Festival, can cause spikes in demand, whereas other parts of the year might be quieter.
• Evolving Regulations: Like many popular Airbnb destinations, Nashville’s rules surrounding short-term rentals can change. Staying updated is essential to avoid potential pitfalls.

3. Boise, Idaho

Overview and Key Attractions

Amid the vast landscapes of Idaho, Boise emerges as a city of surprising vibrancy and natural beauty. Often under the radar compared to its more prominent counterparts, Boise is a blend of urban sophistication and outdoor adventure. From its riverfront greenbelt to its burgeoning arts and cultural scene, Boise is steadily establishing itself as a sought-after destination, attracting both leisure travelers and those seeking a refreshing, natural getaway.

Key Attractions:

• Boise River Greenbelt: A 25-mile park in the heart of the city, offering paths for biking and walking along the scenic river.
• Old Idaho Penitentiary: A historic site offering insights into Boise’s past, with guided tours and exhibits.
• Downtown Boise: A lively area brimming with shops, restaurants, art galleries, and events.
• Bogus Basin Mountain Recreation Area: A year-round hub for outdoor activities, from skiing in winter to hiking in the warmer months.

Market Statistics

• Average Nightly Rate: $130 (as of 2022; subject to fluctuations)
• Occupancy Rate: Approximately 65% (as of 2022; may vary based on season and other factors)

Local Regulations and Insights

Boise, recognizing the potential of short-term rentals, has set forth regulations that are generally perceived as balanced. Property owners are required to obtain a short-term rental permit, adhere to safety standards, and remit applicable taxes. There are stipulations regarding the number of guests and vehicles allowed, and certain areas might have homeowner association rules that supersede city regulations.

Potential Challenges

• Emerging Market: Being a rising destination, Boise’s Airbnb market is still maturing, which means there might be some unpredictability in trends and returns.
• Seasonal Demand: While Boise does offer year-round attractions, there could be seasonal peaks, especially during winter sports seasons or major local events.
• Local Concerns: As with any growing tourist destination, there can be local apprehensions about the impact of short-term rentals on housing and neighborhood dynamics.

Best Places To Buy AirBnB Abroad in 2023

Here are the best places to buy AirBnB abroad in 2023!

1. Tulum, Mexico

Overview and Key Attractions

Tulum, once a tranquil seaside town, has evolved into an emblem of boho-chic luxury, drawing travelers from all over the world. From its mesmerizing beaches with crystal-clear waters to the historic Mayan ruins perched on cliffs overlooking the Caribbean Sea, Tulum is an embodiment of both ancient charm and modern allure.

Key Attractions:

• Tulum Ruins: The remnants of an ancient Mayan city, offering a glimpse into a civilization long past.
• Cenotes: Natural sinkholes, such as Cenote Dos Ojos, where visitors can swim in fresh, clear waters.
• Beach Clubs: Upscale spots like Nomade and Coqui Coqui that define Tulum’s modern-day luxury.
• Sian Ka’an Biosphere Reserve: A UNESCO site with tropical forests, mangroves, and a rich diversity of marine life.

Market Statistics

• Average Nightly Rate: $200 (as of 2022; subject to change based on demand and season)
• Occupancy Rate: Roughly 74% (as of 2022; can vary especially during peak seasons)

Local Regulations and Insights

Mexico’s regulations for short-term rentals can be complex, and while Tulum has seen an explosion in Airbnb listings, potential investors should be cautious. It’s vital to understand property rights, especially regarding beachfront properties. Regularization of properties and adherence to zoning laws is crucial to avoid legal complications.

Potential Challenges

• Rapid Growth: With its surging popularity, Tulum has seen rapid development, leading to concerns about sustainability and infrastructure.
• Seasonality: While Tulum is popular year-round, the hurricane season can affect bookings.
• Competition: As more investors are drawn to Tulum, standing out in the crowded market becomes imperative.

2. Lisbon, Portugal

Overview and Key Attractions

Lisbon, with its pastel-colored buildings, historic trams, and panoramic viewpoints, has always enchanted visitors. This coastal capital of Portugal beautifully balances its historic roots with a buzzing contemporary culture, from its ancient Alfama district to the modern LX Factory.

Key Attractions:

• Belém Tower: A historic fortification offering a deep dive into Portugal’s maritime history.
• LX Factory: A hub of creativity, housing restaurants, boutiques, and cultural events.
• Tram 28: The iconic tram route offering a scenic tour of the city’s key landmarks.
• Time Out Market: A food haven showcasing the best of Portuguese cuisine.

Market Statistics

• Average Nightly Rate: $120 (as of 2022; influenced by season and events)
• Occupancy Rate: Around 70% (as of 2022; with potential for more during peak seasons)

Local Regulations and Insights

Lisbon has introduced regulations for short-term rentals, including a licensing system. While the process is straightforward, certain neighborhoods have stricter limitations to combat overtourism. The Golden Visa program, which offers residence permits for property investors, is also a significant draw.

Potential Challenges

• Regulation Changes: With the growing impact of tourism, Lisbon might adjust its regulations, requiring hosts to adapt.
• Seasonality: While Lisbon is a year-round destination, the winter months can see a dip in tourists.
• Market Saturation: Lisbon’s popularity means more listings, necessitating unique offerings to stand out.

3. Da Nang, Vietnam