Whether you’re already investing in Airbnb or planning to jump on the bandwagon, there’s one thing you need to succeed: Airbnb data analytics.
Table of Contents
- What Is Airbnb Analytics & Why Do You Need It?
- What Airbnb Data Analytics You’ll Get with Mashvisor
- Which Is Better: AirDNA or Mashvisor?
Many real estate investors know there’s a lot of money in the short term rental market. Revenue from the US vacation rental industry is estimated at $18.63 billion in 2022. The figure is expected to grow at an annual rate of 2.24%, reaching $20.36 billion by 2026!
However, besides being lucrative, the Airbnb rental market is also one of the most competitive markets for making money in real estate. As more people invest in Airbnb vacation rentals, thriving requires much more than listing your home on the short term rental website.
You need to find out if your vacation rental home will give you a good return on investment (ROI) before you even buy it. The best way to figure that out is by using Airbnb data analysis.
Naturally, you don’t want to waste time searching for Airbnb data from multiple sources, organizing it into spreadsheets, and updating it every time you come across a new opportunity.
The answer is simple: Right here on Mashvisor.
Keep reading as we’ll explain what Airbnb rental data to look for when buying a vacation rental property and how to get it on Mashvisor. By the end, you’ll know exactly how to access Airbnb analytics that will help you identify and seize the best Airbnb investment opportunities in the US housing market 2023.
What Is Airbnb Analytics & Why Do You Need It?
Airbnb predictive analytics refers to gathering big Airbnb rental data, analyzing, and interpreting it. It includes all the crucial figures, ratios, and percentages you need to understand how profitable buying an Airbnb property is and how to increase your ROI. But they aren’t just numbers; they’re a lot more.
Airbnb data analysis utilizes both traditional and predictive analytics – meaning it uses past and current data to make accurate projections for future market trends. If you’re a short-term rental host or investor, you’ll definitely want to take advantage of this amazing real estate investment tool.
What Are the Benefits of Using Airbnb Data Analytics in Your Investments?
Primarily, Airbnb data analytics will allow you to make sound investment decisions with confidence. That’s because – first and foremost – you’ll be able to find the best cities to invest in Airbnb and the top neighborhoods within each city. Your location choice will be backed up by the performance of existing short term rentals and Airbnb rental demand.
Moreover, Airbnb analytics will inform your search for positive cash flow vacation rentals and help you select the best property for your investment needs and expectations. Even as a beginner investor, you can compete against those who’ve dedicated their entire career to real estate investing.
Another benefit of Airbnb data and analytics is that they help you mitigate risk when investing in Airbnb rentals. While investors have different levels of risk tolerance and risk aversion, we all prefer safer investment strategies, with everything else kept equal.
However, the most significant advantage of having access to Airbnb host analytics is the analysis of Airbnb retur on investment metrics. It will give you a better idea of how your vacation rental will perform in the long term. Together, they will help you succeed with the Airbnb rental strategy and keep you ahead of the competition.
What Kind of Data Does Airbnb Collect?
Through the services that it provides to hosts and guests, Airbnb collects many different data points that can be of great value to vacation rental investors. Some of the Airbnb rental data available to the platform that existing and future hosts can use to improve their property analysis and performance include:
- Airbnb Daily Rates
- Airbnb Occupancy Rate
- Airbnb Rental Income
The potential value of these data points in the hands of savvy investors provokes the question:
How Do I Pull Data From Airbnb?
The issue is that pulling and using data directly from Airbnb is not an easy task and requires a solid amount of data science and machine-learning algorithms behind it. Data needs to be collected, analyzed, cleaned, and aggregated in order to be provided in a form that’s useful to investors without extensive data analysis background.
Moreover, the short term rental platform does not conduct Airbnb data analysis for investors and does not provide them with already digested Airbnb analytics.
So, what’s the best place to find Airbnb analytics to boost your investment decisions?
How to Access Airbnb Analytics
As with most things in real estate investing, there are two ways to obtain Airbnb data analytics. These are the traditional way vs. the efficient way enabled by the recent growth of technology in real estate.
How Can I Obtain Airbnb Data the Traditional Way?
The traditional way of finding Airbnb rental data to support your investment decisions requires conducting Airbnb market research and analysis of every location of interest.
It means looking for properties comparable to the one you consider buying, which are called Airbnb rental comps. Next, you need to obtain historical data on their occupancy rate, daily rate, monthly income, and recurring expenses. Moreover, you need to consider factors like Airbnb reviews and ratings and their impact on the performance of the comps.
Last but not least, you need to combine all the above data and see what it means for the potential of your investment property.
While it might sound like just a few steps to complete, keep in mind that this process can take weeks or even months. Things can get particularly complicated and time-consuming if you want to analyze multiple properties across different markets.
How Do I Analyze Airbnb the Efficient Way?
As mentioned earlier, you don’t need to look for Airbnb data analytics on your own. Can you imagine just how stressful finding and organizing real estate data analytics is if there are many locations and properties for sale involved? As a real estate investor, the only way to make sound decisions based on data and analytics is if you use the right tools and resources.
However, you can’t trust just any source that offers a form of Airbnb data. It begs the question: What is the best Airbnb analytics platform that allows you to run an accurate Airbnb investment analysis and ensure you’re making money in the short term rental market?
While you might come across many real estate investor websites online that provide this kind of information, the best platform for your Airbnb rental business is Mashvisor. That’s a bold claim, we know, but we’ve got all the reasons to believe real estate investors will find the Airbnb data they’re looking for here.
Mashvisor’s algorithms and machine learning models give you deep insights and predictive analytics related to Airbnb rentals in the US housing market. The information is presented in an easy-to-understand format for investors to find precisely what they’re looking for in a matter of minutes.
Whether you’re a first-time host or an experienced vacation rental owner, keep reading to learn how Mashvisor’s predictive Airbnb analytics and tools can help you boost performance.
Start your 7-day free trial of Mashvisor’s tools now.
What Airbnb Analytics You’ll Get With Mashvisor
As discussed above, the Airbnb platform does not provide data and analytics for short term rental property investors and Airbnb hosts to augment their investment decisions. However, you should not worry, as Mashvisor has all the market-level and property-level Airbnb rental data that you might possibly need to make smart and profitable decisions.
Listed below are the different types of information you can get from Mashvisor’s Airbnb data analysis:
Market-Level Airbnb Data
When you’re starting your Airbnb investing journey, the first question to ask is: How do I analyze an area on Airbnb?
The answer is: You can analyze an area—both cities and neighborhoods—on the Mashvisor Airbnb data analytics platform.
The market-level Airbnb data available on Mashvisor includes:
1. Real Estate Market Data
If you’re thinking of buying an Airbnb property, finding the best cities for Airbnb investment must be the first thing on your mind. Location is a major factor for successful Airbnb real estate investing and a high Airbnb ROI. As a result, performing Airbnb data analysis on your market of choice is vital to make sure you choose a profitable location.
Information on Airbnb Laws and Regulations
It is especially important to start with research on short term rental laws pertinent to the locations you’ve selected. Airbnb regulations have been and continue to be passed in major tourist US cities that are typically an investor’s first choice for starting a vacation rental business. The degree of restrictions varies widely from one city to another.
As a real estate investor, you should study Airbnb rules and find a few locations where running non-owner occupied short term rental properties is legal. The last thing you want as an Airbnb host is to face legal problems with the local authorities.
If you’re unsure where to start, you can check out this list of US cities with the least Airbnb legal issues.
Afterward, make sure to do a quick Google search to check the state of the tourism industry and the demand for vacation rentals in these locations. Securing a high Airbnb occupancy rate is one of the most important factors in operating a successful Airbnb business.
Market Data on Airbnb Profitability
Although your choices of where to invest in Airbnb may be limited due to legal restrictions, you can still easily find profitable locations using Mashvisor’s Airbnb data analytics.
After doing your preliminary Airbnb market research to find locations with favorable regulations, it’s time to see what Airbnb data analysis says about profits in the said locations. The type of real estate data you’ll need to narrow down your list includes:
- Median Listing Price
- Average Airbnb Occupancy Rate
- Monthly Airbnb Rental Income
- Average Airbnb Return on Investment (Cash on Cash Return and Cap Rate)
There are two ways to find such types of Airbnb data on Mashvisor. First, you can head to our real estate investment blog. There, you’ll find the latest Airbnb data analytics of cities in the US housing market 2023 and beyond for absolutely free. Not only that, but we also keep our readers up to date on the latest Airbnb laws and regulations in the said cities.
You can also find Airbnb analytics and regulations in our location reports, like those on the Orlando real estate market and the Miami real estate market. There, we provide an in-depth market analysis of major US cities, including an Airbnb investment analysis already done for you.
Regardless of which road to market-level Airbnb market data analysis you choose, it will help you decide on your location for investing in Airbnb and make smart decisions accordingly.
2. Neighborhood Data Analytics
When talking about location in real estate investing, we don’t just mean which city to invest in, but the specific neighborhood as well. Access to the relevant neighborhood data related to Airbnb investments is crucial because different neighborhoods within the same city offer different investment potentials.
For example, some neighborhoods never see tourists during the year. Meanwhile, others – especially those close to popular and attractive places like city centers, beaches, or universities – can be packed with tourists, making them ideal for Airbnb investing. So how can you find out which neighborhoods are best in your city of choice?
How Do I Analyze the Airbnb Potential of Neighborhoods?
Digging a little deeper and researching tourism data on neighborhoods is one way, but such information can be hard to find. Instead, Airbnb data analytics reveals everything you need to know.
If vacation home rentals have performed well in the past in a certain area, predictive analytics will determine if buying an Airbnb here is expected to remain profitable in the future as well.
An Airbnb host or investor can find this info in our blogs as well since we typically list the best neighborhoods for investing in Airbnb in different cities. But Mashvisor has two specific Airbnb neighborhood analysis tools. They allow you to select the top location in any US market and learn everything you need to know about it from an investment point of view.
1. Real Estate Heatmap
The best place to access Airbnb data analysis for neighborhoods is Mashvisor’s real estate heatmap tool. This is what this real estate investment tool looks like:
As you can see, this is basically an overview of different areas within a city. There are various filters that you can use to analyze the different neighborhoods based on Airbnb analytics. They include:
- Listing Price
- Airbnb Cash on Cash Return
- Airbnb Rental Income
- Airbnb Occupancy Rate
Simply play around with any of the above filters, and you can find the most profitable neighborhood for Airbnb in your city of choice.
As a rule of thumb, you want to find an area with an affordable listing price, high Airbnb rental income, good cash on cash return, and high Airbnb occupancy rate. This combination of Airbnb data analytics means you’ve landed in a neighborhood where you can afford to buy an Airbnb investment property that will promise a good ROI.
2. Neighborhood Analytics Pages
Once you select a few potentially good neighborhoods for your Airbnb investment strategy, you can use the Mashvisor neighborhood analysis pages to expand and deepen your research. This Airbnb analysis is available for every neighborhood in all US cities and includes the following data points:
- Mashmeter Score
- Median Property Price
- Average Property Price per Square Foot
- Airbnb Cash on Cash Return
- Airbnb Rental Income
- Number of Investment Properties for Sale
- Number of Airbnb Listings
- Airbnb Occupancy Rate
- Walk Score
- Transit Score
- Bike Score
- Rental Property Types
- Airbnb Occupancy Rate by Rental Type
- Rental Size Distribution
- Historical Airbnb Rental Rate
- Historical Airbnb Occupancy Rate
You can use the above data points to complete your neighborhood market analysis, and rest assured that you’re choosing the optimal area for your Airbnb rental property.
Property-Level Airbnb Data
Now that you’ve found an excellent location for starting a short-term rental business in 2023, it’s time to locate the best Airbnb investment property in that location.
In this section, we’ll answer another pressing question in the world of Airbnb investments: How do I analyze an Airbnb property?
Luckily, you can analyze the investment potential of a short term rental property using the Mashvisor Airbnb analytics platform. Our set of tools comes with an Airbnb profit calculator that provides eight types of data every real estate investor needs to carry out an Airbnb investment analysis.
Now let’s take a look at all the Airbnb data analytics points that a host can access through the Mashvisor platform:
1. Airbnb Rental Income
Wondering how much to charge for rent for your Airbnb?
You probably know that to compete in the short term rental market, you can’t just set whatever rental rate you want. You need to have an Airbnb pricing strategy that takes into account local rental listings, expenses, and occupancy rates. Moreover, you must factor in seasonality and changes in demand.
When you have an Airbnb calculator tool like the one provided by Mashvisor, you won’t need to do all that Airbnb analysis on your own.
The first Airbnb data analytics that our tool provides is comparable rental income for your investment property. Mashvisor finds rental comps for you and estimates the expected Airbnb income for your property based on data on comparable vacation rental listings in the area.
Keep in mind, however, that the results you get aren’t a given. Airbnb host analytics only produce estimated figures based on which you can decide for yourself.
Learn More: The Best Ways to Increase Airbnb Rental Income
2. Airbnb Costs & Fees
Owning a vacation home rental is much like owning a traditional, long term rental in the sense that it can be quite expensive. Rental expenses that come with investing in Airbnb properties include guest turnover, property management fees, maintenance, cleaning, restocking, property insurance, taxes, and others.
Before setting a final rental rate, Airbnb hosts need to factor in the above costs and fees of owning an Airbnb. After all, no one wants to buy vacation rental property that they can’t afford and end up losing their investment. Thanks to the Airbnb predictive analytics provided by Mashvisor tools, you can rest assured that you won’t make such a mistake.
Our short term rental calculator shows estimates of property expenses for any listing on the platform. The estimates are typically averages of the area. Moreover, our interactive investment tool breaks down the figures and allows you to adjust any of the costs and fees based on your own Airbnb market research.
You can add any extra costs (both one-time startup and reoccurring) that are unique to you and your Airbnb rental property. Mashvisor will then recalculate the ROI metrics, so you’ll see how rental expenses affect your Airbnb return on investment.
The one-time and monthly/annual rental expenses factored in by the Mashvisor Airbnb profitability calculator include:
- Furniture and Appliances
- Closing Costs
- Property Management
- Property Maintenance
- Property Tax
- HOA Dues
- Rental Income Tax
- Cleaning Fees
3. Airbnb Cash Flow
When investing in rental properties, cash flow is king, and positive cash flow is a must. Cash flow in real estate is basically the rental income minus expenses. The amount left is the money and profit that goes into your pocket.
Thus, Airbnb hosts and investors should ensure they’re investing in vacation homes that generate positive cash flow. It means the rental income outweighs your expenses and allows for profits. Nothing is worse than buying an Airbnb property only to end up with negative cash flow.
How Do I Check My Airbnb Analytics on Cash Flow?
Once again, the answer is: You can get Airbnb data analysis on expected cash flow with the help of the Mashvisor real estate investment tools.
Just because you have Airbnb data analytics on rental income and expenses doesn’t mean you must manually calculate cash flow on rental properties. If you’re choosing between a few Airbnb properties for sale, even these simple calculations can end up taking a lot of your precious time.
Instead, Mashvisor’s Airbnb profit calculator takes all the Airbnb data and automatically runs the numbers. So, by just clicking on a listing that interests you, you can immediately tell whether or not it has rental potential to make positive cash flow as an Airbnb short term rental. This additional info comes for free with a subscription to Mashvisor tools.
If a property does not promise positive cash flow, then just move on to the next listing for sale that meets your criteria. Never settle for a negative cash flow long term or short term rental property, hoping that you’ll be able to perform better than the average host in the market. It is a major trap in real estate investing.
4. Airbnb Occupancy Rate
Airbnb occupancy rate is the main driver of your vacation home rental business. Occupancy rate is the ratio of the time your rental is occupied compared to the time it’s vacant. It takes into consideration the days when your rental listing is made available for renting and the days when the calendar is blocked.
Usually, if this number is low, say below 50%, Airbnb hosts need to charge a lower daily rental rate to attract guests, generate income, and avoid the risk of negative cash flow. Otherwise, they might start losing money rather than making money with Airbnb.
To avoid buying an Airbnb investment property that’ll sit vacant most of the time, you must understand what affects occupancy rates. It includes factors like location, seasonality, the vacation home itself, and Airbnb reviews. However, the best way to understand what kind of occupancy rate to expect is through Airbnb occupancy rate data.
Where Is Airbnb Occupancy Data Available?
You can find data on the occupancy rate of short term rentals in the US market on the Mashvisor platform.
For every rental property for sale listed on Mashvisor, you’ll find the relevant Airbnb occupancy rate data. Mashvisor’s Airbnb data analysis is based on rental comps in the housing market where the vacation home is located.
To get this type of Airbnb data analytics, Mashvisor pulls Airbnb listings, calendar bookings, host information, reviews, and other details from Airbnb for the past five years.
Using the said historical data, we then calculate the property’s Airbnb occupancy rate by counting its bookings over the past 12 months, day by day and month per month. As a result, we provide both monthly and annual Airbnb occupancy rate data.
Furthermore, because our Airbnb profit calculator is interactive, you can adjust the occupancy rate and see how this affects your Airbnb return on investment. It is especially helpful if you’re thinking of buying an Airbnb property with low occupancy with a plan to increase it.
Learn More: 13 Tips to Follow for High Airbnb Occupancy Rate
5. Airbnb Return on Investment
The Airbnb return on investment is probably the most important type of Airbnb data analytics investors need. When you’re in the initial stages of investment property search, it can be challenging to calculate the potential ROI on every single listing that catches your eye.
First, you need to gather different types of data and make sure that they’re accurate. Then, you must run the numbers following different calculations on the rate of return on rental property, including the cash on cash (CoC) return and cap rate calculations.
If done manually, anyone can easily get mixed up and end up with inaccurate results. In turn, it would lead to making the wrong investment decision. It is why you need a tool that puts Airbnb data to work and calculates ROI metrics like CoC return and cap rate with the power of predictive analytics.
This tool, of course, is the Airbnb profit calculator. Using predictive real estate data, Mashvisor tools provide reliable cash on cash return and cap rate values for every property to tell you how profitable it’ll be as a rental investment.
Airbnb Cash on Cash Return vs Cap Rate
The cash in cash return is the ratio between a property’s cash flow and your total cash investment. You can use the built-in Mashvisor mortgage calculator to adjust your total investment, which includes your down payment, closing costs, and any needed renovation costs.
As for the cap rate, it’s the rate between cash flow and the property’s purchase price, so you don’t need to include financing details. While the cap rate is a less comprehensive measure of profitability in real estate investing, it’s easier to calculate. It allows the quick comparison of markets and properties for sale.
Mashvisor offers all the above real estate data for the same property as an Airbnb rental vs. traditional rental to provide a rental strategy comparison. It should help you make sure that Airbnb is the optimal rental strategy. In other words, you’ll guarantee that the property you’re choosing to invest in comes with a higher Airbnb return on investment than a traditional ROI.
6. Airbnb Rental Comps
Airbnb comps are crucial to everything rental property analysis, from determining the property value to setting the right nightly rate. To create your own set of Airbnb rental comps, you need Airbnb data for every short term rental that is similar to yours in the real estate market. As mentioned, gathering such Airbnb data analytics on your own will take a lot of time and effort.
In addition, organizing the vacation rental listings into spreadsheets to identify which ones qualify as comps is not only hard but can lead to mistakes in your Airbnb data analysis. Hence, it only makes sense that the best Airbnb analytics platform allows you to access Airbnb comps.
With Mashvisor, you don’t have to go through this trouble. We provide readily available Airbnb comps for any listing you find on the platform. It’s offered as part of the Airbnb investment property analysis for each MLS listing or off market property for sale.
7. Data on Airbnb Reviews
Successful Airbnb hosts and investors know how important it is to get positive reviews and good rankings. As mentioned before, it is one of the factors that affect your Airbnb occupancy rate. It means that positive reviews can boost your occupancy, while bad ones can ruin your short term rental property business.
But have you ever wondered how many positive reviews you need to actually see an increase in your occupancy rate?
It’s something that any real estate investor wants to know. But you can only learn this with Airbnb data analysis that you can get from Mashvisor. When analyzing vacation homes using the Airbnb rental investment calculator, our analytics will show you how many Airbnb reviews you need in order to see an increase in occupancy.
It’s only a glimpse of the power of data and analytics. This can change how hosts, investors, and even Airbnb property managers conduct business.
8. Airbnb Investment Payback Balance
The last Airbnb data analytics point that you absolutely need when investing in Airbnb rentals is the investment payback balance. This type of real estate data allows you to see the amount of money or profit the rental property will have generated in the future based on its current Airbnb statistics.
On the Mashvisor Airbnb analysis platform, you can switch between monthly and annual calculations. This will help you track how the rental will perform over the next 12 months or 10 years.
Mashvisor takes the gross revenue, total expenses, net rent, Airbnb tax, cash flow, and start-up costs into account. That’s why the calculated estimate of the Airbnb property’s projected investment payback balance is highly accurate.
It lets you know if the property will make or cost you money. Moreover, it helps you determine the amount of time it’ll take for your Airbnb to generate profit.
Which Is Better: AirDNA or Mashvisor?
In brief, Mashvisor is better than AirDNA for finding profitable Airbnb rental markets and Airbnb properties for sale. You can also say that Mashvisor is the best Airbnb data analytics platform in the entire US market. We’ll explain the reasons below.
If you’ve spent any time in the Airbnb investing business, you must’ve heard both “AirDNA” and “Mashvisor”. There are dozens of tools that provide Airbnb rental data and analysis. But these two are the most popular and trustworthy platforms across the US housing market.
In the comparison Mashvisor vs AirDNA, Mashvisor is the clear winner because it:
- Helps investors find the best Airbnb locations
- Allows beginner investors to search for money-making Airbnb opportunities in any location
- Helps investors analyze the Airbnb investment potential of any residential property in the US market
- Allows property buyers to be sure that Airbnb is indeed the optimal strategy for a location and a listing
- Lets hosts optimize the performance of their short term rentals and boost income
AirDNA is a commonly used name in the vacation rental industry. However, it simply doesn’t provide the same features and capabilities as Mashvisor.
Get Access to the Best Airbnb Analytics Today!
Now you know why Airbnb analytics are so important. You also now know how to get Airbnb data and exactly what metrics you need to succeed. These numbers are crucial to allow you to make profitable investment decisions and outperform the competition in the US market.
Airbnb itself does not provide hosts with the Airbnb rental data that they need to optimize performance. But there is another way to get access to these valuable figures: the Mashvisor Airbnb analysis platform.
Mashvisor’s blog, heatmap, and neighborhood analysis pages help you find the top short term rental markets across the entire US. Mashvisor’s features like the Airbnb profit calculator will give you everything you need to buy positive cash flow vacation rentals.
In other words, Mashvisor is the one-stop Airbnb real estate investing app that aspiring investors need in order to make the best investments any time and anywhere.
If you want to access the best Airbnb data analytics in the US rental market, start out your 7-day free trial with Mashvisor now.