Why does the Airbnb investment strategy work magic with Washington DC real estate? Well, the Airbnb investment strategy in itself has proven its success in real estate ever since its establishment in 2008. However, that is not enough as, in order for the Airbnb investment strategy to be a lucrative one, it has to be in a location that has a high occupancy rate and constantly attracts travelers.
Do you want to know what kind of Airbnb occupancy rate can you expect? Make sure to check out What Kind of Airbnb Occupancy Rate Can You Expect?
Let us get to know Washington DC real estate and how the Airbnb investment strategy works in this real estate market.
Washington DC Real Estate Market 2018: Airbnb Investment Strategy
With its never-ending visitors who come from all over the world and other states as well to attend conferences or visit the White House and walk down the streets of Georgetown, the Washington DC real estate market makes a great location for the Airbnb investment strategy. In fact, Washington and Arlington are some of the top spots in the country, just behind Hawaii and Southern California. This indicates that the demand for Airbnb rentals is high and constant.
In addition, Airbnb rentals make a great deal for families and groups traveling to DC on weekdays, but why is that? Well, prices of hotels and motels around Washington DC spike during the week in order to deal with and handle the influx of travelers (mainly business travelers) which means that Airbnb is a cheaper option for group travelers on weekdays for sure.
The Washington DC real estate market depends heavily on governmental jobs. This means that when the job market is flourishing, the population is up which increases the number of tenants. Washington DC real estate is in a great location for traditional rentals and the Airbnb investment strategy alike. According to Airbnb, home sharing through Airbnb with Washington DC real estate helps locals and businesses by bringing the economic benefits of tourism. It, on the other hand, provides guests with authentic and local experiences in the city.
Below is Mashvisor’s investment analysis data for Washington DC real estate:
- Median house price: $639,646
- Airbnb Occupancy rate: 51.85%
- Airbnb rental income: $2,727
- Traditional rental income: $2,653
- Airbnb cash on cash return: 1.71%
- Traditional cash on cash return: 2.17%
The abovementioned figures undoubtedly guarantee the fact that Washington DC real estate and the Airbnb investment strategy is a winning combination. The occupancy rate of the city is high which ensures having Airbnb guests and tenants all year long. Moreover, the median house price is relatively acceptable in a lively place such as Washington DC.
A report that was published by Airbnb in April 2018 indicates that residents ages 60 and up in the District of Columbia earned around $5.5 M sharing their properties via Airbnb which shows an increase of 50% compared to 2016. Another report states that around 6,400 families in DC hosted at least one Airbnb guest last year and the typical host shared their home 49 nights and earned $5,800 in additional income.
Are you curious to know more details about why the Airbnb investment strategy is a smart decision? Read When Is Investing in Rental Property as Airbnb a Smart Investment Decision?
Washington DC Real Estate: Top Locations for Airbnb Investment Strategy
There are many neighborhoods in Washington DC that enable you to practice the cultural immersion that Airbnb provides you with. From the business district to the revived Columbia Heights, Airbnb is bringing benefits for every corner of the city. However, not all Airbnbs are made equal and below is a list of the top places for Airbnb rentals based on prices, location and occupancy rate:
Bordered by Columbia Heights, U Street Corridor, and Dupont Circle, Adams Morgan makes a great location for renting out on Airbnb as well as investing with the Airbnb investment strategy. Although it is not known for its historic sites or calm side streets, travelers flock to this neighborhood to enjoy a different kind of experience. They enjoy shopping for its unique items, dance the night away at its different bars and it also gives visitors easy access to Dupont Circle and Foggy Bottom Area at cheaper renting prices. It is also close to Washington DC’s two main airports which also explains the high occupancy rate in this neighborhood for Airbnb Washington DC.
- Median house price: $581,926
- Airbnb occupancy rate: 63.79%
- Airbnb rental income: $2,850
- Airbnb cash on cash return: 1.86%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Its colorful buildings, friendly people, and mural-covered side streets alongside easily accessible subways that can take you anywhere from Virginia to Maryland, Columbia Heights keeps attracting travelers. Although buying a rental property might be more expensive in this neighborhood compared to other places in DC (median house price), the occupancy rate, however, is the highest in the entire city and reaches 70.72%. This should definitely encourage Airbnb investors to invest in Washington DC real estate here to get a high return on investment.
- Median house price: $649,118
- Airbnb occupancy rate: 70.72%
- Airbnb rental income: $3,052
- Airbnb cash on cash return: 2.32%
This neighborhood is a haven for young families and professionals looking for tranquility outside of DC’s major metropolitan area. Cathedral Heights’ architectural mixture of historic houses is probably its most interesting feature. Other features of this neighborhood are its easy transportation to places such as the White House and Georgetown. Although the occupancy rate is not as high as other places in the city, the median house price in Cathedral Heights is lower than the average price of the city. This makes it a great potential to purchase a rental property in the area and invest with the Airbnb investment strategy.
- Median house price: $424,484
- Airbnb occupancy rate: 34.5%
- Airbnb rental income: $1,892
- Airbnb cash on cash return: 1.27%
Do you want to know the best cities for Airbnb investment 2018? Read: These Are the Best Cities for Airbnb Investment 2018
The Airbnb investment strategy is a successful one with Washington DC real estate mainly because the Washington DC housing market has all it takes to succeed with this strategy. However, keep in mind that in order to make money in real estate, you have to understand the ins and outs of the real estate market and Airbnb regulations. Do not forget to sign up for Mashvisor to use our Airbnb profit calculator to make good real estate decisions and lucrative investments.