AirDNA's Chief Economist Jamie Lane gives an exclusive deep dive into AirDNA's highly anticipated Best Places to Invest Report.

Discover the top markets for short-term rental investments in 2025, backed by cutting-edge data and expert analysis.

You will find out:

Introduction and Overview 00:06

Okay. Perfect. I think we can probably get started. So, first of all, thank you very much to everyone for joining us today.

Obviously, you've got a very exciting topic to go over today.

Our much anticipated best place to invest report for twenty twenty five is the tenth edition, of this report. It's come a long way over those ten years, and our chief economist, and SVP of analytics, Jamie Lane, will be taking us through the the report today and kind of how we came came to it and and give you some some sort of examples as well.

A bit of housekeeping before we do get started.

First thing is the the webinar will be recorded or is being recorded, so we'll be sending this out, early next week so you can watch it back. Any questions you have, please do put them in the q and a, and we will have a, have some time at the end to go over those questions.

And with that, I will hand over to Jamie to take it away.

Awesome. Thank you, Tom, and thanks everyone for joining the presentation today.

We've got already a few thousand people on the call, so we're gonna dive in.

So this is AirDNA's, best place to invest in twenty twenty five report. We're gonna run through quickly through the methodology, walk through what we're seeing in the US today in terms of investment appetite, look at the results, and then, I'm gonna do a deep dive demo on how to use their DNA platform to find your best place to invest.

The report is live, on the AirDNA website. You can go and access it.

Just go into any search engine and press, search for AirDNA best place to invest.

So digging in our methodology, we have made some, updates to the report, in terms of how we're, looking at, really ranking these markets.

The two that are, essentially the same is our demand growth and revenue growth metrics.

So demand growth essentially reflecting, occupancy. So available nights that are available, how many were booked, and are we seeing more being booked today, this year than in the prior year? That's twenty five percent of our methodology.

Revenue growth, I think a very important metric around, really momentum around the market. Our host today and listings today are earning more money this year than they earned last year. As an investor, I don't wanna go into a market where everyone's losing less money, and competing more with each other, for guests.

Chapter

Investment Metrics Explained 02:51

And then investability, this is really the core to our analysis, really, evaluates the strength of current opportunities, in a market, by looking at gross yield. So essentially, a property's annual revenue potential divided by its list price. And this is where we've made the major change. So instead of looking in the past at essentially average home values, and average revenue potential, and essentially, theoretically, what would be the best places to invest, we've sort of flipped that on its head. And we're now we're saying, like, let's look at all the homes out there that we can buy. Let's run, our rentalizer calculator or estimate of what each of those homes would earn as a short term rental. So going out and finding relevant comps, and then, estimating, what that property would earn as a short term rental, and then, calculating the gross yield and essentially doing that across all five hundred thousand homes available for sale in the US today.

So that's actually what we went in and did.

And I'm gonna walk you through a quick example of that, what the data points are, so you really can understand the data that's going behind it as you go in to do your, own research. So I pulled up an example here in Blue Ridge, Georgia, just about hour and a half outside of Atlanta. And you see here this sort of list of short term rentals.

So just, not short term rentals, homes for sale. So starting high level as we started to filter down, what properties were gonna be included in our analysis, we started with a filter on for sale properties of homes that were for sale over a hundred thousand dollars and less than five million. So we wanted to get into this range of essentially removing outlier homes either, too low to probably be viable in terms of home value, as a short term rental or too high, that, in a home over five million, you're probably not gonna be renting out as a short term rental anyway.

We also, overlay this filter. We work with a company called Zoneomics, that has zoning maps that has gone through and essentially figured out where new short term rental investment isn't allowed. You should see those on our for sale listings within our app, with sort of an STR, and across through it. So those areas that are deemed zoned that I I could not go in and make a new short term rental investment. So we've removed those properties out of the analysis.

And then what we do is we go in and look at the for sale price of every home.

We then go in and project, the revenue that we expect for each of those homes to earn.

And then, we calculate the gross yield. So taking that revenue and divide that by the price, and we do that across all the homes to get our investability, score, for every market, across the country.

And so when we think about gross yields, though, and this is sort of a a point we sorta I wanna make, in terms of just what we're seeing in terms of, the short term rental investment environment.

Chapter

Market Trends and Investment Environment 06:12

In in the blue line, we look at short term rental revenues over time, and you see that as represented as an average monthly revenue. We see those really peaked in twenty twenty one, now come down and really plateaued.

We look at the average monthly premium. So essentially, take a home, take the current, at that time, mortgage rate, essentially, what would it cost to get a thirty year fixed mortgage, and assuming a twenty percent down payment, what would that monthly premium be?

And then looking at the premium between these two. Because you look back in twenty twenty and twenty twenty one, where short term rentals were rising, home premiums were still relatively low, home values hadn't really started increasing yet. Interest rates were still very low. We saw really peak, premiums for short new short term rental investment.

Then as interest rates rose, home value rose, and short term rental revenues started to come down, that investability metric really started to, pull back. And it reached a low in October of twenty twenty three where the premium between what short term rentals were earning and what it would cost to buy a new short term rental investment on average sort of reached a low point. And now as short term rental revenues have started to increase again, mortgage, rates have come down a bit as well. The in recent months, they have started to, tick back up.

We have started to recover some in terms of this, investment, metric. So it's something that we're watching. We're in no need means in a perfect time to invest in short term rentals. But I think that makes these sorts of analysis all the more important because you've gotta dig in.

You've had it you've gotta have, patience in terms of your investment, and finding, what are gonna be the best.

Well and when we look at supply growth, so what are investors actually doing? We are seeing a pullback, in terms of overall supply growth.

Chapter

Supply Growth and Market Opportunities 08:12

Honestly, I see this as an amazing thing as someone that is investing today.

The competition is lower if you're going out into buying homes, and we're not seeing, bringing on a property, in an investment environment where, supply growth is twenty, thirty, forty, fifty percent in some markets. In some of the better markets as we'll see, when we look at the list, we are seeing anywhere from ten to thirty percent supply growth, but that's not nearly what we're seeing in in some of the air other areas, around the country.

And then when we look at the types of, markets that people are investing today. So this looks at twenty twenty four, year over year supply growth.

So how many listings in each of these different location types are available as a short term rental and compare that to, twenty twenty three?

Essentially, we see very low slow slow growth in urban, suburban, mountain, lake, markets, and coastal markets, essentially five percent and below, growth. A lot of urban markets around the country are seeing a pullback, actually, year over year decline in supply, and we're gonna look at some of those. But where we see the have seen the best opportunity, really across the board is some of the small and mid sized cities, around the country. If we look at our twenty twenty four average growth rate for the markets that made our twenty twenty four best place to invest report, They grew, over the past year at about, ten and a half percent.

And that's really where, we see, most of the country that I think it's really investable today. I you're gonna go be able to go out and find a home.

You're gonna be able to generate a return on it that is gonna be a cash flowing property.

That's sort of the average growth rates we're we're seeing, and those are the types of markets we wanna highlight, for you today.

Before we get to that, though, I thought this would be fun to show just starting with the entire world and then digging into, the US.

And what this shows here, and this is a a a data point we're pulling off of Airbnb essentially every review that gets less by a guest. And those guests are an indication of demand of each reservation that gets made. A very high percent of those reservations, the guests are leaving a review.

And looking at where reviews are being left and where we've seen the most, in the highest, lowest, change in reviews, essentially showing us where our guests going today. We look at the US, we saw twenty one, essentially twenty one million reviews left on Airbnb in twenty twenty four, which was up twenty, two point seven percent.

So what does that tell me? One, US is the largest country for Airbnb.

That's a lot of demand that's happening on any given day and in any given year. But it is some of the slowest growth we've seen across the entire world in terms of large countries generating a lot of demand.

So that's in the upper left hand corner.

Essentially, a lot of demand, but low growth.

You look at low demand, low growth, these are essentially areas that you really don't wanna be in. Essentially, those are areas that have been impacted by, war in Gaza.

So Israel, Lebanon, Jordan, Turkey.

And then and you go to the right. Top right, quadrant, you get high demand, high growth. These are areas with relatively high demand, and are seeing pretty strong growth rates.

And then on the bottom right, low demand, relatively small markets, but really strong growth. And for those of you that are thinking, I'm maybe I'm open to a little bit more risk, in making my investments overseas, that these could be really interesting places to to look into. These are areas where an Airbnb is investing very heavily, into growing, both guest and the host, guest demand and, new supply, and that could, you could really be arriving riding the a wave of growth. Now let's look at the same sort of views, but for the US. I think this is super interesting in terms of where demand where's demand moving within the US. There's overall growth of, like, two and a half percent.

That's kind of boring. But when I look and see how demand for guests is really shifting across the US, we start to find really interesting trends. So starting on the left hand side, where's, demand falling, and we do see demand falling in quite a few markets across the US. Starting with areas on the top left, areas impacted either by regulation like New York or major disasters like Asheville and Maui.

And then areas that have sort of pulled back in terms of, a lot on regulation, but also on very, demand centric, issues, in the bottom left. And then the ones that get me excited, on the right hand side, so the opposite of New York, really being, buoyed by the regulation that we're seeing in New York, strong demand in Jersey City, Newark. We've got Cape Coral, Fort Myers on the rebound, from, hurricanes, last year, and then very strong growth in Ozark Mountains, and then some of the small, medium to large cities, Cleveland, Indianapolis, Buffalo, Niagara Falls, all markets that have been, on our best place to invest over the past two years.

And then, some of the, really emerging markets across the US. We see Broken Bow number one there. Still relatively low demand, but the strongest growth and overall demand that we've seen, in the US in twenty twenty four at forty eight percent. Logan, Ohio has been on the list the past two years at thirty six percent, growth and demand, Deep Creek in Maryland.

Really some exciting markets if you're looking to find, areas that are seeing, outsize, demand growth performance.

With that, let's get into our best places to invest.

Chapter

Top Investment Markets for 2025 15:06

Starting first with, markets twenty five through eleven, we see a good mix of maybe larger, to mid sized cities.

We've got Tampa and Saint Pete, showing up on the list, both with decent our, supply growth, but seeing strong RevPAR growth, and strong revenue potential. We've got Richmond, Virginia, a decent growth as well.

And I'd call out, quite a few of these markets like Richmond, like Kansas City, do have significant regulation, in those markets. In the report, we call out, areas that, are tougher, to get permits are tougher, and maybe you're only limited to, primary plus one, investment. So I would definitely highlight, and dig into the potential regulation that you might see that might limit the opportunity in some of these markets.

And then getting into our top ten.

So, really excited about some of these markets. Frankfurt, Kentucky sort of smack dab in the middle of the, Bourbon Trail, saw thirteen percent, or thirteen percent average growth wheel yield. We saw over sixty percent supply growth in this past year. And even with that supply growth, we saw RevPAR growth positive, of listings still generating more money. A hundred and seventy, dollar RevPAR, three hundred and three dollar, ADR, very strong metrics, in that market.

And then our top ten, Preston City, California, five. Columbus, Georgia, which had been our number one market last year, saw a twenty percent increase in listings on a year over year basis, still driving average growth yield of thirteen percent, and they still continue to grow RevPAR, up five and a half percent.

Fairbanks, Alaska, number two, had been our number one market, two years ago.

Still seeing very strong supply growth seventeen percent, still able to grow, RevPAR up six percent over year year basis. And then Peoria, Illinois, number one.

Few hours outside of Chicago, average growth yield, coming in with one of our strongest yields bit over averaging fifty percent, and RevPAR growth of seven percent even in the face of twenty one percent supply growth. So those are our best place to invest, for twenty twenty five. The report is live.

Chapter

Home Value Analysis and Yield Insights 17:51

Something we did a bit different this year is we added, breakdowns by, average home value. And when we looked at these, we did it by yield, but the thought is is a lot of you, are going in with specific budgets that you can spend either on your down payment or, and the type of home value you're looking for. And when we look at the markets that really came up, with the highest gross yields, you typically see them at the lower budgets.

And it's just the the fact of the matter is if you're searching for yields, you're typically gonna find it, when you're investing in, lower, overall, list price and and and home values.

So that can mean a report like ours, which is really ranking, putting a heavy weight on investability, really tends to be more lower home value type markets. So what we wanna do is taking cuts at different ranges of home values, what, might generate, and what really comes to the top, at different price points.

So we we highlighted those below. You get into some of the highest yielding markets at low home, hundred to three hundred and fifty thousand dollars in areas like Broken Bow or San Juan, Puerto Rico, Northern Michigan, Brinton Harbor, Michigan City, Indiana, and even the Finger Lakes, in New York.

Then moving into some of the higher budget, areas, we see Santa Rosa, Rosemary Beach coming in. So, number one, if you're looking at a budget over, five hundred and fifty thousand dollars to a million.

And then even if you've got some real money to spend, areas showing up, Napa Valley, Portland, Maine, Sonoma, California, really interesting. San Juan shows up at both the highest, and the lowest, and then Killei, Hawaii.

You compare the average yields, though. So we're looking at average around a seven percent if you've got a budget north of a million versus if we go back and look at the lower end budgets, a hundred to three hundred and fifty thousand, averaging about a nineteen percent yield in the top market. So definitely a lower yield. But as we think about our invested capital and sort of putting it to work, that, higher yield at a lower cost is gonna take, significant, more effort to sort of, deploy, higher number of properties that you're managing, and a lot of work, to potentially, generate those yields. So with that, I do want to jump into a demo.

Chapter

AirDNA App Features and Promotions 20:51

So I'm going to, stop sharing, this screen, and we're going to dive into, the, app. While I get that ready, I do wanna share with everyone though, that we're are doing a special promotion, for everyone, that's listening.

If you use the code, b p t I, at checkout, you will get ten percent off, either a monthly or annual subscription.

And if you're interested, and that's for AirDNA Pro, our our self serve sort of, tool, that most of you all familiar with.

And then we I will show some, sort of features available through AirDNA Advanced.

And if you're interested, in searing more about AirDNA Advanced, you can book a call with our sales team. This, QR code will take you to a form.

And if you mention BPTI, they will give you twenty five percent off.

So with that, let's dive into the app.

And as many of you know, we did relaunch our app, in twenty twenty three.

And the app has a ton of new features and functionality, that really centers around, finding, the best places to invest. Because what we found and what we heard from, our clients is AirDNA is great, but I can't actually find markets to invest with AirDNA app. I essentially have to know the markets that I wanna invest in and then navigate to each city individually.

Chapter

Enhanced Market Discovery Features 22:46

So what we wanted to do was find an the sort of discovery process around short term rental investment, make it easier. So when you go into a country, and this works for any country across the world now with an AirDNA subscription, you don't just get access to a single city, you get access to the entire world, to be able to dig into your investments. So we start here with this list, list of cities, and it shows all three hundred and seventeen markets across the US, or you could be looking at submarkets, all six hundred six thousand submarkets across the US. And immediately, I can either start digging into and clicking into markets, and we do color code these, based on our market score.

Some of the best places to invest, in dark, some of the weaker ones, in the lighter colors, or I can start filtering markets. So you could let's say, I'm only interested in markets, less than, let's say, ten thousand, listings, and I'm interested in coastal markets, and I really wanna focus in, markets with a high investability score. And our investability score is essentially calculated off of those growth yields. So I can hit apply, and then immediately, I'm going to get a new list of markets.

Chapter

Advanced Tier Subscriber Benefits 24:13

So I'm gonna see the areas that meet that investment criteria. So low number of overall listings, high investability score, and I can, see those listed. Now if I was an advanced tier subscriber, I'm gonna get a little bit extra, across those markets, and I'm gonna get exportable data. So I could click on the, list here. I'm gonna see all those same markets. I'm gonna see listing counts, ADRs, some, great, sort of investability metrics around what percent are full time, what percent, are professional, what percent, are, yeah, seeing growth in, listings, things like that.

Similarly, at the sub market level, I can see in those markets, what are all the different sub markets that meet that criteria as well. And now, I really want to get into analyzing a market that I'm interested in. So let's say, I want to analyze, Maine, Downeast Acadia.

Chapter

Analyzing Specific Markets 25:31

I can then, click into the market. I'm immediately gonna see all the existing listings that are out there, but then I can also and what I typically start to do now is dive into the submarkets.

So what are the different submarkets around my market? What are the key metrics, for those different submarkets? And one of the big changes now with AirDNA is, yes, I can start with overall market averages. Let's say Ellsworth, which was on our best places to invest list in twenty twenty four, has an average revenue potential of fifty five thousand dollars, but that's a market average. No one invests in a market average. I wanna understand, like, what is an average earnings of a four bedroom property, that is entire home and just houses, getting rid of apartments unique type properties?

And what is the average revenue potential for those type of properties? And here I see now it has increased in Ellsworth up to ninety five thousand dollars. And then maybe I wanna sort these markets to the highest occupancies because I know this is a seasonal market. I wanna see the ones that do the best, in those, driving occupancy sort of throughout the year. And now I can dig into a specific submarket.

And what's fun now here is in addition to being able to analyze what are the top earning properties, which I think is one of the real and best things you should sort of dig into when you're analyzing a submarket.

What are the existing properties out there that are generating the highest returns, clicking into each of these, properties where you can see, okay, I wanna look at the the schoolhouse.

I wanna see, what is the seasonality of that property. So it looks like it's generating, revenue from May, through to October.

What is the historical revenue, in ADRs? You can sort of see these with our advanced tier, but also, across all of our, tiers, be able to see the amenities and then be able to click into the Airbnb listing, and see, the reviews, and amenities of that property. So I can really get a sense of what are the things people are willing to pay for and what are the sort of attributes of properties that are generating outsized returns, in this submarket.

Chapter

For Sale Properties Integration 28:07

And then, with, AirDNA, relaunching our site, we also launched for sale properties, where you can see every home that's available for sale, and then where we've automatically run a rentalizer report against it, where you can see, the projected revenue, for that property.

So I can see, and this property is currently for sale for four hundred nineteen thousand dollars. AirDNA projects that it would generate, sixty two thousand dollars. And then most importantly, here are the comps that sort of sit behind that. So here are the comps that we've identified, that, are relevant for that one.

And then you could click into each of these comps, and evaluate, whether or not you think that they are relevant, and, use those in your analysis. So we've really, tried to bring all the data that you need to find the best places to invest, based on your sort of investment criteria, to, forward to you. And then let's say, like, I'm sold on main main day Downeast, Acadia, coastal as a market, But I really wanna, start more high level, with the for sale properties where I don't really want to narrow down to a submarket, yet. So here, what I could do is start looking at all for sale properties.

Chapter

Curated Property Listings 29:45

I can go into my for sale, filters, and I can narrow down the type of property. So let's say I only wanna look at ones that are in a house. I'm really only interested in properties that are, for sale greater than three hundred thousand dollars. And then I wanna hide properties that are not, zoned currently that I can use as a short term rental.

And then maybe, dig in a bit further if I'm really only interested in properties that are four plus bedrooms.

Yeah. And then apply that.

I'm gonna get a much more curated view now, fifty eight properties that are for sale, and then I can start analyzing those. I can sort maybe to, highest or lowest price, and then see which ones sort of meet my investment criteria, before, I, really have to go to Zillow.

I don't have to sort of go back and forth in terms of, analyzing, markets against each other.

I can really start with for sale, analyze that. Now that's not to say you shouldn't sort of dig into your market, because that's I once I start in seeing and finding, properties that I think, could be decent investments, then I really wanna start digging in, to my market, understanding, historical supply growth, understanding, seasonality, understanding occupancy and ADR trends to make sure that this is a market that's really going to, be a success long term. That's where we start with our, market scores. So we've got an overall eighty three score, here in, Maine Downeast, high investability, high rental demand score, but relatively low revenue growth, seasonality, and regulation.

Chapter

Supply Trends and Insights 31:51

So here, you can start seeing an overall supply trend. So this is a market, that sees very high seasonality, and where overall supply has been increasing.

And where I really like to start my analysis, is, digging into supply.

So, and I've got to maybe reset some of my filters.

So how has supply changed over the last three years?

With my pro subscription, I get access to the past three years of data. I can export that so I can see how supply growth has really changed against across all the different sort of bedroom size categories.

This lets me get a sense of, what types of listings are growing, which types of listings are decreasing in my market. And then if I'm an advanced tier subscriber, I can go all the way back to two thousand eighteen, and see sort of the longer term trend of that market.

So see how supply has increased or decreased, throughout COVID and then climbing out of it. So this market is one that we've seen actually pretty decent supply growth. So, going from three thousand listings during peak season to, over four thousand listings during peak season.

Chapter

Occupancy and Seasonal Analysis 33:17

The next, real metric I like to analyze as I'm starting to, dig into a market is looking at occupancy, getting a sense of the seasonality of the market, get a sense of if occupancy is increasing, occupancy is decreasing, and I can really see that. And, yes, my occupancy has been coming down since twenty twenty two, but still generating very high, performance and has actually increased a bit, from, twenty twenty, three to twenty twenty four. And that I get called out that over the past year, we've seen a six percent, increase in occupancy.

And then, again, for advanced tier subscribers, I can actually go all the way back to twenty eighteen, and get a sense maybe, like, one of the really, I think, powerful charts I can go in and pull of of my current occupancy. How does that compare maybe to pre COVID?

So here, it looks like we've vastly expanded, the, season for this market. We're in October.

I was only generating fifty three percent in twenty nineteen. Now, occupancy is maintaining well into seventy percent, out into October. And I can really start to learn how these markets, are evolving.

We also show, forward data.

So there's not gonna be a lot to understand in a market like Maine over the winter, but I can start to see, how the market is booking up for next summer, when people are booking for, what are the rates, they're booking for, and, what is, the, how far in advance, they're really booking these days out into the future. I can see that as of now.

And then I can also see that, back through time.

Chapter

Booking Behavior Insights 35:23

And this is, another one of my, real favorite charts, is going down to the bottom where I can see, okay, during peak season, how far how much how many bookings am I getting last minute, versus how many bookings am I getting really thirty plus days in advance? Does this really helps me start to think through my pricing strategy?

I need to have my, rates really set, probably a year in advance, because people really do start booking well in advance of peak season.

And once I get closer, I can see and, yes, people are booking more last minute, but I bet and these are the type of analysis that you can do. If we look at maybe one and two bedroom properties, we can see thirteen percent, booking within a week, eight percent booking within two weeks, and then compare that to maybe larger homes, five plus bedrooms, seeing a, lower percent, only ten percent booking within a week and four percent, booking within that, two weeks ahead. So if I've got a larger property, oh, man, look at that. Sixty percent of nights booked for homes five plus bedrooms are booked, more than three months in advance.

So you can really understand how guest behavior, sort of differs.

Now that we've, really implemented, these filters to be dynamic across, all metrics, within the AirDNA app, which really unlocks deeper insights, into your markets.

Chapter

Q&A Session Overview 37:14

So with that, Tom, gonna looks like we've had a ton of questions, come in. Maybe we'll pause and answer some of those questions.

Yeah. Absolutely.

Lot of lot of questions, lot of interest in in the report.

So there's been a a few themes for some of the questions, so hopefully, these will answer a few in in one go. So one one consistent question we can get we have come through is what kind of information do we have on regulation within the app, and, how else can we help people with with that kind of, you know, dealing with that regulation issue?

Yeah. And we don't have a ton of great information on regulation with the app. We did go through and call out, within the top, twenty five best places to invest, areas with significant regulation that would impact, new investment, in those markets.

We are working on how to better inform investors on regulation within our app.

We have brought in for for sale listings, sort of flags on areas that are zoned for or not zoned for short term rentals.

But I would highly suggest starting with the Google search of, or even leveraging, tools like, ChatGPT, or Claude, or Gemini, and sort of types of prompts I'm using, are what are regulations that would restrict new short term rental investment in city, above or county, that I'm looking in, as many of the regulations are very county or city specific.

Absolutely. Thank you. Couple of other questions on where do we source our for sale property data from? Yeah.

Chapter

Data Sources for Property Listings

Yeah. We work with with a company called, ListUp, which aggregates, for sale properties across, really hundreds of different MLSs around the country.

That data is updated daily.

So as you're when with your aDNA subscription, you can be going in, and seeing updates, every day on new properties that are coming for sale, and what we're estimating each of those properties, could earn.

Perfect. Thank you. Got a few questions on the methodology of the report. I don't know if you as you're on the the the deck here, if you might be able to go back to the beginning just to give a quick overview of how we came up with the the methodology on this one for those who missed it at the beginning of the call.

Yep.

So starting with, our main metric being investability.

So looking at gross yield of all properties that are currently available for sale in that market.

So looking at the annual revenue that we project each of those homes could earn, as a percent of its listed, price.

And we did that at a market, and submarket level, and then, analyzed all the, markets and scored those markets against each other.

The other two metrics, demand growth. So what percent of, available nights were booked, and, how are we seeing those nights book change?

And then revenue growth, one of my favorite metrics to really dive into on the health of a market. So of listings that are available today, are we seeing those listings earn more or less than they did, last year? So this can really give you insight, on a health of a market, as you analyze RevPAR over time.

Perfect. Thank you.

And you mentioned earlier there was a decrease in urban supply. So a question here about, what's caused that? Is it regulation primarily, or are there any other other factors?

Chapter

Understanding Urban Supply Declines

Yeah. And when we look across the US, we see more and more markets today seeing an overall decrease in listings.

So as as I was showing the app, and that you can look really high level, and very granular, so at a market and each of the submarkets, what is the year over year change in supply?

This is and one of my biggest indicators of, like, how and what to start my analysis with.

So when we go back to this time last year, there were only seven markets that we're seeing a year over year decline in listings.

Today, that's sixty listings that are seeing a year or sixty cities, markets that are seeing a year over year decline in listings. So some of that is regulation.

Some of that is just, we see a real lack of new investment today.

And then through natural churn of listings in that market, you see, a supply start to fall. So I'm sitting here in Atlanta.

We had about a four percent decline in listings on a year to year basis. We saw that, in Kansas City.

We see that, obviously in New York, but also in areas like, Los Angeles, San Francisco, where's, even Miami. We're seeing year over year, declines in listings.

And a big piece of that can be investability of, it just doesn't make sense as a short term rental investor today, to go into that market. So we're seeing a pullback in in supply growth in those areas. And then as existing investors, our existing operators sort of turn out, that that can pull, overall supply down.

That's not to say that these markets that are seeing, supply growth are bad areas to look into, and many, areas that can be quite the contrary that as supply holds back, that allows occupancy to increase, that gives exist operators, greater pricing power, and that it could quickly move from a weak investment environment to a strong one, as you start to see short term rental revenues, increase for, those existing operators.

Chapter

Revenue Potential Metrics Explained

Perfect. Thank you, Jamie.

We had a couple of questions around revenue potential. So, obviously, you showed in the in the app revenue potential for markets and for individual properties. Could you just explain a bit what that metric is and and how we calculate it?

Yeah. So revenue potential, is a, estimate of what we think a property could, earn as a full time short term rental.

It is one of the main metrics, when you run a rentalizer report.

It is one of the main metrics when you look at our for sale properties.

So I'm just going to run into, the app, click on a property, and then maybe we'll, look here, at a property that's currently for sale and where we see the projected revenue.

So what this does is it looks at each comp. So we've identified here, six different comps, where we're showing what, what these properties have earned. And then, for an existing property, we show both what it earned, and then for properties that weren't available full time, we'll show what they what we think they would have earned if they were available full full time. So during those days that they might have been blocked, what they would have generated, and then we aggregate, the monthly revenue potential for each of those comps, and then add it all together, to get, the expected earnings, for that, property.

So here's the projected earnings, for this property on what what it would earn per month, and then we add up each of those, monthly projected revenues to get the, annual projected revenue, revenue potential for that property.

And then one of the more recent changes we, made, our additions we made based on client feedback was they really wanted to know of of that projected revenue, what percent comes from cleaning fees. So what we've done is we have, gone and teach of the comps, broken out the difference between, sort of room revenue, and how much of that projected revenue comes from cleaning fees.

And then we drop in here, so you see five thousand, sixty seven dollars. So we're saying of that total revenue, potential, five thousand of that was generated, from cleaning fees. So if you're just gonna be using that as a pass through expense, that you can decrease that revenue potential by that amount and know exactly, what the cleaning fee portion, was of that projected revenue number. And that will show, in both the for sale property section, or if you were really searching, any property around the country. So searching in a random address, I can click into the calculator and see, okay, this one had a projected revenue of thirty two thousand dollars. Of that, we say that, six, sixty five hundred of that was, generated, by the cleaning fee.

Chapter

Exploring Property Characteristics and Filters

Perfect. Thank you, Jamie. Excuse me. Just whilst you're in the app here might be a good one as well. So we've got a few questions around how to kind of, find information on on specific property characteristics, so things like unique unique homes or, places with hot tubs, that kind of thing. Maybe you could just show how to use the filters a bit.

Yeah. So we can either start high level the entire country, or what I like to do is, really dig into specific markets.

So, maybe I'll I'll go into the market where I recently made a short term rental investment, in, North Georgia, mountains.

So I can go into SDR listings.

So this is gonna show all, eleven thousand listings that have sold at least one night over the past twelve months.

And I really use this is like an a super, comp finder. So if I'm making an investment and I really wanna find a very specific set of properties that sort of align with the type of investment I wanna do, this is where I start. Because then I can start diving into listing filters.

So maybe, you said you wanted unique type places. So these are like yurts, tree houses, really non single family or multifamily type properties.

Maybe I wanna do entire place.

So then I can apply that. So I can see there's three hundred and sixty five, properties that meet that filter criteria.

I can see where each of those properties is on the map. And then maybe in addition to that, I wanna know which ones have a hot tub, and find those. So now I've got unique type properties. So I've got this barn here.

I've got some tree houses. I've got some yurts.

And then, I could click into them, find the Airbnb or Vrbo page. This is also a question we get pretty often of how do I get to the Airbnb or Vrbo links?

So we do match all properties, across Airbnb and Vrbo, and you can click to either the Vrbo page by clicking on the Vrbo button or the Airbnb page by clicking on the Airbnb button. And then I can also see all the amenities that are included with this property. So I see, it sort of indicated here, that it has a a hot tub. And, also, without even leaving the AirDNA app, click through, all the photos, for that home and sort of see, the amenities sort of firsthand that it it has.

And that really gives me a a more detailed, view of, potential comps. And then I'll just show for, the advanced tier, subscriber, what you get. You can do similar filters, to specific markets.

So I could go into the North Georgia mountains, filter to, just the, again, the unique properties, with hot tubs.

But then I could also get, sort of, the detailed data around each of those properties, the name, who's managing it, the, historical performance for those properties, either current past twelve months or going back through time, and then, be able to export all that data. So it essentially gives you the ability to, export, really detailed data, from our database.

Great.

Thank you, Jamie.

Chapter

Data Sources and Accuracy in Rental Analytics

So we've had a couple of questions around, our data sources and also our accuracy. So I don't know if you wanna tackle those two two for one.

Yeah.

So we are tracking all short term rentals, on Airbnb, and Vrbo.

And then, what we do, to generate, the sort of data, is we are scraping calendars.

So every single listing, we're looking at the calendar on a daily basis, which nights are available, which nights are unavailable. And then as we look at it every day, we're then tracking, as that listing goes unavailable, what day it went unavailable on, and then modeling whether that was a booked night or just an owner going in and blocking that night. So if, like, it's a listing in Cape Cod and owner goes and blocks it during the winter, we wanna make sure that that gets sort of, tagged as a block and not as a sort of six month booking, end of the winter in the market and attributing revenue to it.

So we, spend a lot of time, on that model. We track the accuracy of it daily.

We recently, made an acquisition of a property management system called Uplisting that you can now get through, AirDNA, and leveraging, that data to check our accuracy, on a daily, weekly basis, and ensuring that our data is accurate, really throughout, the entire world. So there are some accuracy enhancements, that we're we continue to do. One of the more recent ones, was taking into account longer term stays and longer term discounts, in our revenues.

And and what I can promise, all the listeners is that the accuracy will continue to prove over time.

I typically put sort of a, five to ten percent, sort of buffer, around the sort of estimates around the property, because we are sort of estimating it. We are scraping the rates around the property. We're estimating demand.

But, overall, we see, our accuracy, continuing to improve over time.

Chapter

New Features: Saving Properties and Market Tracking

Perfect. Thank oh, excuse me. Sorry. Thanks, Jamie. Couple of questions here about is there the ability to, save save properties that you're interested in or or kind of tracking or same to do with same with markets? Is that something we can we can demonstrate?

Yeah. One of my, favorite new features in the app, is the ability to, generate, save lists.

And this is something that I would sort of call in beta right now. We've got some big, product releases that are gonna be coming out at the end of q one and into q two, around, custom comp sets, and customized rentalizer reports, and saved rentalizer reports. But as a sort of preview around what you can do now, is generating a saved list. So let's say, in the North Georgia mountains, I'm looking to, really create an estimate, on what a property, could do that is a, so let's look in the Helen area. We've already looked at unique properties, with with, hot tubs. Now I wanna create a custom set of properties.

So again, one of the new features too is as you zoom in with the map now, it is going to limit, the properties that, you're seeing to just that view. Now I wanna go in and add each of these properties, to a saved list. So I can click on the heart.

I can create a new list. So I'm gonna say, North Georgia, hot tub, unique.

Hit save.

And then as I then save each property, to that list, it's going to, add it in.

And I'm just gonna do maybe one more, this fun one, by the creek, highlighting glamping.

So once I've created that saved list, now I can click on my name, look at all my saved lists, go to SDR listings, and then I'm gonna go then go find my lists. So North Georgia hot tub unique. I can see that I've got four listings with that. And now what's really fun is I'm gonna see the aggregate performance of those four listings. So I can see they've earned on average, fifty five thousand dollars in revenue over the past twelve months, at a three hundred and forty dollar ADR and a forty six percent occupancy. I can see which months each of those properties were active, the average daily rates, and occupancy levels. So that is sort of a, unique way to generate and track performance for a specific set of properties.

Similarly, I can track, markets.

So if I go back to explore and let's say and North Georgia is an area that I really want to, keep up with, and maybe I wanna add some more than I'm sort of watching.

Let's say I wanna keep an eye on Sioux Falls.

I can add that to my watch markets.

I can also, do that with for sale properties as well. So let's say this, fifty million dollar home in Miami I wanna keep an eye on.

I'm gonna create a new list of can never buy, but want to watch.

And then as I go into my different saved lists, I'll be able to, keep an eye on those properties and sort of how it's sort of the projected earnings for that property sort of change over time. We do, update these, projected earnings every month, so you can see how that sort of evolves, or, the list price. So it really gives me the ability to create a curated list of properties or markets, and go in and quickly access them, as I come back into the app.

Chapter

Conclusion and Additional Resources

Perfect. Alright. Well, I think that probably brings us up to time. So thanks very much, Jamie, and thank you very much to everyone for joining today.

As Jamie mentioned at the beginning of the call, we are offering a ten percent discount with the code b p t I. Jamie, I don't know if you wanna bring up that, that slide again.

And if anyone does wanna speak to our sales team, please do scan the QR code on the slide as well.

Couple of other things. There's a lot of questions about we'll we'll be sending out the recording. We will be sending out the recording. Don't worry.

So you can watch it back. And if we didn't answer any of your questions, I do apologize. There were a lot. We did our best, but we'll do our best to follow-up with you all individually, as well in the coming next few days.

But, again, thank you very much to everyone for for joining today. And, Jamie, thanks for thanks so much for taking us through it.

Yeah. And I'll I'll just make one more plug. If you're interested in data, check out our podcast, the SDR Data Lab.

You can find it on Apple, Spotify, or any of the other podcast providers. And then our blog, we do an update of US, and European performance every month. Our team puts a lot of effort into keeping you updated on the latest trends. It's free.

Check it out. Go to our blog. Look for the US or European reviews, and there are gate great ways to get up to date on what's happening across US short term rental performance, and appreciate everyone tuning in. Thank you. Alright.

Thanks, everyone.
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