Airbnb Rentals 4 Airbnb Industry Trends to Watch For in 2021 by Charles Mburugu November 16, 2020November 16, 2020 by Charles Mburugu November 16, 2020November 16, 2020 As you may already know, the Airbnb market was hit hard by the coronavirus pandemic. With the stay-at-home directives and travel restrictions, Airbnb properties all over the world witnessed drastic drops in occupancy rates and rental incomes earlier this year. Back in May 2020, an Airbnb industry survey found that 70% of guests were afraid of staying at an Airbnb, while 47% of hosts were hesitant to rent out to guests. 64% of respondents said that they had either canceled or were intending to cancel upcoming reservations. Many hosts and Airbnb real estate investors expected their revenue to continue to drop throughout 2020. However, a more recent report by Mashvisor revealed that the Airbnb industry is in recovery, on average. While some cities and hosts continue to struggle due to the pandemic, many others have seen their short-term rentals bounce back. Here are some of the cities that have shown an improved Airbnb occupancy rate from March to September 2020, according to the report: Milwaukee, WI: +31% Colorado Springs, CO: +29% Reno, NV: +28% Buffalo, NY: +28% Pittsburg, PA: +27% When it comes to the revenue generated in the Airbnb industry, these are the cities that experienced the highest rise in monthly Airbnb rental income during the same timeframe: Buffalo, NY: +81% Philadelphia, PA: +68% Colorado Springs, CO: +61% Reno, NV: +54% Baltimore, MD: +49% Do you have questions about Mashvisor? Read our FAQs and learn about our tools. It’s clear that many in the Airbnb industry are back to taking bookings and collecting their income. So owning an Airbnb can still be a profitable business in 2021. However, COVID-19 has changed the industry – there’s no doubt about this. And to succeed as an Airbnb property owner, you need to be aware of the following Airbnb travel trends: Related: Will Airbnb Survive the COVID-19 Pandemic? #1. Increased Domestic Travel Due to cleanliness and safety concerns, domestic travel will become a major trend in the Airbnb industry in 2021. A recent Airbnb survey revealed that 62% of people are planning to take vacations within driving distance from their homes. This is unlike 2020, when US travelers were targeting destinations like Rome, London, or Paris (before COVID-19 hit). There will also be a shift to more socially-distanced and remote spaces such as cabins, cottages, barns, tree houses, and Cycladic houses. Related: Types of Properties That Can Be Used as Short-Term Rentals #2. Stringent Health and Safety Requirements Airbnb has come up with a set of compulsory COVID-19 safety requirements for both guests and hosts of Airbnb listings. These rules are based on directives from the US Center for Disease Control and the World Health Organization. Here are some of the safety practices that Airbnb hosts and guests must adhere to in 2021: Wear a mask at all times when interacting in person. Remain 2 meters (6 feet) apart from each other. As a host, you must adhere to the Airbnb enhanced cleaning protocol. Do not host or travel if you suspect that you are sick or have tested positive for coronavirus within the past 30 days. Wash hands regularly with soap and water. Alternatively, use a hand sanitizer that has at least 60% alcohol. Common areas of your Airbnb income property such as kitchens and bathrooms must be cleaned and sanitized as often as possible. #3. More Remote Workers Staying in Airbnb Rental Properties Remote work will have an impact on the Airbnb industry in 2021. Work from home (WFH) has become a popular buzzword in 2020 due to COVID-19. From July to September, there’s been a drastic rise in guest reviews mentioning ‘remote work’, ‘relocate’, ‘trying a new neighborhood’, and ‘relocation’. In the survey on the Airbnb industry, 83% of respondents said they wouldn’t mind relocating as part of remote work. About 20% have relocated either permanently or temporarily due to the pandemic. 60% of parents are considering traveling with their children and working remotely if school schedules continue being disrupted. Due to this trend, many people are using Airbnb rental properties to test new cities and neighborhoods before making a permanent move. People are booking stays in locations that have wide-open spaces and immersive natural surroundings. #4. The Rise of Pod Travel Due to the risk of COVID-19 infection, traveling in a ‘pod’ is going to be an increasingly popular trend in the Airbnb industry 2021. This is where a group of family or friends take a trip together to minimize the risks of socializing with others. The participants can rent several cabins or a villa in order to stay together. Health protocols such as social distancing, mask-wearing, and washing of hands are observed in order to enhance safety. According to a recent Airbnb industry poll by Virtuoso, 79% of respondents said that they would participate in a travel pod. Where to Invest in Airbnb in 2021 – “Trending Destinations” Thinking of starting an Airbnb business in 2021? You’ll want to start searching for a rental property for sale in one of the best cities for Airbnb investment. Airbnb listed many “trending destinations” in the aforementioned survey. However, to ensure you choose only the best location for your Airbnb investment property, we’ve chosen to list here 7 major cities from the report with good Airbnb cash on cash return. The following data is derived from Mashvisor’s Airbnb analytics. #1. Palm Springs, CA Median Property Price: $595,597 Price per Square Foot: $328 Average Airbnb Daily Rate: $380 Monthly Airbnb Rental Income: $5,002 Airbnb Cash on Cash Return: 4.9% Airbnb Occupancy Rate: 67% #2. Richmond, VA Median Property Price: $383,031 Price per Square Foot: $192 Average Airbnb Daily Rate: $137 Monthly Airbnb Rental Income: $2,705 Airbnb Cash on Cash Return: 4.9% Airbnb Occupancy Rate: 62% #3. Indianapolis, IN Median Property Price: $268,899 Price per Square Foot: $124 Average Airbnb Daily Rate: $142 Monthly Airbnb Rental Income: $1,744 Airbnb Cash on Cash Return: 3.4% Airbnb Occupancy Rate: 53% #4. Durham, NC Median Property Price: $362,750 Price per Square Foot: $201 Average Airbnb Daily Rate: $112 Monthly Airbnb Rental Income: $2,035 Airbnb Cash on Cash Return: 2.9% Airbnb Occupancy Rate: 59% #5. Greenville, SC Median Property Price: $433,543 Price per Square Foot: $209 Average Airbnb Daily Rate: $137 Monthly Airbnb Rental Income: $2,224 Airbnb Cash on Cash Return: 2.9% Airbnb Occupancy Rate: 57% #6. Santa Fe, NM Median Property Price: $663,937 Price per Square Foot: $305 Average Airbnb Daily Rate: $248 Monthly Airbnb Rental Income: $2,035 Airbnb Cash on Cash Return: 1.5% Airbnb Occupancy Rate: 55% #7. Boise, ID Median Property Price: $605,193 Price per Square Foot: $270 Average Airbnb Daily Rate: $99 Monthly Airbnb Rental Income: $1,954 Airbnb Cash on Cash Return: 1.1% Airbnb Occupancy Rate: 59% Find a Profitable Airbnb Investment Property Conclusion With many parts of the world experiencing the second wave of COVID-19, the future of the Airbnb industry is still uncertain. If travel restrictions and stay-at-home orders become the norm again, we may see another slowdown in the industry before the end of 2020. However, it’s clear that Airbnb is resilient. Even during the pandemic, hosts have managed to keep occupancy rates high and generate revenue. So if you make the necessary preparations, you can run a successful short-term rental property business in 2021. Just be sure to stay updated on travel in 2021 and the latest Airbnb industry trends. Related: Invest in Airbnb – It’s 100% Worth the Investment Start Your Investment Property Search! START FREE TRIAL Durham NCIndianapolis INPalm Springs CARichmond VASanta Fe NM 0 FacebookTwitterGoogle +PinterestLinkedin Charles Mburugu Charles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices. Previous Post How to Find REO Properties in 2021 Next Post The Best Rental Property Calculator for 2021 Related Posts Why and Where to Invest in Airbnb Miami Beach 2018 Become a Successful Real Estate Investor by Renting Out On Airbnb Investing in a Rental Property in the Dallas Real Estate Market in 2018: The Best Neighborhoods A Guide to Investing in Short-Term Rental Properties with Ease How to Start an Airbnb Business in 2021 Best 10 Tips to Boost Your Airbnb Income With Little Effort Investing in Vacation Homes: Top 14 Expert Tips 5 Ways to Avoid Airbnb Squatters That Just Won’t Leave What’s the Deal With the Miami Real Estate Market 2017? Major Challenges of Owning an Airbnb Rental Why Are Short-Term Rentals So Popular in the Real Estate Market Today? Should You Invest in Traditional Rentals or Airbnb Rentals in the Austin Real Estate Market in 2018?