Airbnb San Diego 2018: Why and Where to Invest

As every smart real estate investor knows, location is KEY when it comes to nearly everything in real estate investing. This is especially true for short-term (Airbnb) investment properties. The location of your Airbnb rental will determine the demand for the investment property, its profitability and overall return on investment. One of the hottest real estate markets for Airbnb rentals in 2018 is San Diego. Let’s go further into details explaining why and in which neighborhoods property investors should consider buying an Airbnb San Diego real estate investment property.

Why is Airbnb San Diego a Hot Real Estate Market?

San Diego, located on the coast of the Pacific Ocean, is the second populous city in the State of California with a population of over 1.4 million! This heavy population is a good sign for San Diego real estate investors as it indicates a high demand for investment properties (whether traditional or Airbnb).

Moreover, San Diego continues to improve and enjoy a healthy economy. Thanks to its beautiful weather and over 70 miles of beautiful coastline, the tourism industry in the city is one of the most successful ones in the country! Also, San Diego is home to numerous attractions including the famous San Diego Zoo, SeaWorld San Diego, and Balboa Park. With almost 35 million people visiting the city each year, San Diego is the 11th most visited city in the US by overseas travelers and is one of the top 5 locations for domestic tourism.

As you would expect, this thriving tourism industry increased the demand for short-term rentals. Airbnb San Diego property investors are guaranteed a high Airbnb occupancy rate and can charge more for rent! This, in turn, made Airbnb San Diego a great real estate market.

Click here to find and analyze the best investment properties in San Diego right now!

Airbnb San Diego Laws and Regulations

One thing that property investors interested in Airbnb San Diego should take into consideration is the city’s regulations regarding Airbnb rentals. So far, San Diego isn’t super strict when it comes to Airbnb hosts. However, property investors still need to understand the codes, housing standards, specific taxes for Airbnb rentals, and HOA Rules before buying an investment property specifically to rent it out on Airbnb.

A Quick Summary of San Diego Real Estate Market

Based on data from Mashvisor’s investment property calculator, investment properties in the San Diego real estate market are rather expensive. However, they offer high rental income for both traditional and Airbnb rental properties.

Median Property Price: $745,637
Traditional Rental Income: $2,792
Airbnb Rental Income: $1,435
Traditional Cash on Cash Return: 1.68%
Airbnb Cash on Cash Return: 0.96%
Traditional Cap Rate: 1.68%
Airbnb Cap Rate: 0.96%

The Best Neighborhoods to Invest in Airbnb San Diego Real Estate Market

Airbnb San Diego Real Estate – Pacific Beach

Median Property Price: $1,074,950
Airbnb Rental Income: $3,450
Airbnb Cash on Cash Return: 1.32%
Airbnb Cap Rate: 1.32%
Airbnb Occupancy Rate: 59.16%

Airbnb San Diego Real Estate – Ocean Beach

Median Property Price: $1,162,500
Airbnb Rental Income: $3,049
Airbnb Cash on Cash Return: 1.4%
Airbnb Cap Rate: 1.4%
Airbnb Occupancy Rate: 64.91%

Airbnb San Diego Real Estate – North Park

Median Property Price: $469,500
Airbnb Rental Income: $3,744
Airbnb Cash on Cash Return: 5.34%
Airbnb Cap Rate: 5.34%
Airbnb Occupancy Rate: 62.49%

Airbnb San Diego Real Estate – East Village

Median Property Price: $554,900
Airbnb Rental Income: $2,694
Airbnb Cash on Cash Return: 2.34%
Airbnb Cap Rate: 2.34%
Airbnb Occupancy Rate: 54.40%

Airbnb San Diego Real Estate – Mission Hills

Median Property Price: $1,725,000
Airbnb Rental Income: $6,695
Airbnb Cash on Cash Return: 1.67%
Airbnb Cap Rate: 1.67%
Airbnb Occupancy Rate: 66.24%

Airbnb San Diego Real Estate – La Jolla

Median Property Price: $1,095,000
Airbnb Rental Income: $5,488
Airbnb Cash on Cash Return: 2.06%
Airbnb Cap Rate: 2.06%
Airbnb Occupancy Rate: 66.95%

Airbnb San Diego Real Estate – Hillcrest

Median Property Price: $695,000
Airbnb Rental Income: $3,563
Airbnb Cash on Cash Return: 2.93%
Airbnb Cap Rate: 2.93%
Airbnb Occupancy Rate: 67.45%

Airbnb San Diego Real Estate – Golden Hill

Median Property Price: $199,500
Airbnb Rental Income: $2,159
Airbnb Cash on Cash Return: 7.63%
Airbnb Cap Rate: 7.63%
Airbnb Occupancy Rate: 62.90%

Airbnb San Diego Real Estate – Park West

Median Property Price: $1,442,500
Airbnb Rental Income: $2,653
Airbnb Cash on Cash Return: 0.32%
Airbnb Cap Rate: 0.32%
Airbnb Occupancy Rate: 60.22%

Airbnb San Diego Real Estate – University City

Median Property Price: $749,500
Airbnb Rental Income: $3,333
Airbnb Cash on Cash Return: 2.35%
Airbnb Cap Rate: 2.35%
Airbnb Occupancy Rate: 56.16%

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Airbnb San Diego Real Estate Market – The Bottom Line

All in all, Airbnb San Diego offers amazing opportunities for property investors interested in this type of real estate investing. Thus, if you are thinking about buying an investment property to rent it out on Airbnb, you should definitely consider looking into the San Diego real estate market.

The above-mentioned neighborhoods are those in which property investors will find real estate investment properties in San Diego that are worth their money and generate a high return on investment, as calculated by Mashvisor’s investment property calculator.

Mashvisor is an online platform that provides real estate investors with the best real estate investing tools and data analysis for both traditional and Airbnb investments to make smart investment decisions. To learn more about our product, click here.

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