Does Airbnb Washington DC make for a good real estate investment? Well, the answer in a nutshell is yes, taking into consideration the lively vibes of the Washington DC area and the increase of using Airbnb by guests and investing in it by hosts. Let us delve together to understand how real estate investment in Airbnb Washington DC can be lucrative and its overall effects on economic growth in Washington DC.
Real Estate Investment in Airbnb Washington DC
Since its establishment in 2008, Airbnb has become an economic lifeline for long-time residents to pay bills, increase their income, and keep up with the increased expenses of life. Ordinary people and families are utilizing their homes to generate supplemental income. The short-term rental market, Airbnb Washington DC in particular, exploded in the District with homeowners renting space to visitors for President Barack Obama’s first inauguration in 2009. Ever since, Airbnb has become a familiar tool for both hosts and guests to benefit from its platform and uses.
Based on a report published by Airbnb with regards to housing and investing in Airbnb Washington DC, during 2016, the District of Columbia’s Airbnb community contributed $258 million in economic activity to the city – this includes both rental income earned by Airbnb hosts and money spent by Airbnb guests at restaurants, shops, transportation hubs, and other small businesses. More than 290,000 Airbnb guests visited DC, and 84% of these travelers stated the home sharing platform “makes them more likely to return”.
Why Is Airbnb Washington DC Booming?
It is estimated that 30% of residents’ and families’ income in the District of Colombia is going for renting expenses. This comes in tandem with the constant increase in housing expenses in Washington DC, population growth, and average wages of residents working in governmental related jobs as is the case with most of Washington DC residents. Thus, people are looking for new ways to earn extra money and be able to pay their bills. That is actually one of the major reasons that contributes to the growth and success of the Airbnb Washington DC industry. Moreover, as Washington DC remains the capital and includes countless historical and government-related sites, people from all over the globe and the US are always interested in visiting the capital. This guarantees keeping Washington DC as a top touristic area in the US. On the other hand, Washington DC is the absolute destination for all diplomatic, cultural, and political conferences and activities, as tourists and business travelers are constantly visiting the area, which increases the occupancy rate over Airbnb Washington DC.
During 2017, Airbnb Washington DC investors made $83.8 million by sharing their homes with Airbnb guests. The Airbnb Washington DC platform welcomed over 5,600 Airbnb guest arrivals for 2017 New Year’s Eve. Will Burns, Public Policy Director of Airbnb in Washington DC, mentioned that “Home sharing through Airbnb continues to be a unique and flexible way for District families to make more money, pay their bills, and support their communities.” He added that 2018 will also be another successful year for Airbnb Washington DC investors to generate positive cash flow, contribute to an economic boost, and provide affordable accommodation to DC’s visitors.
To get a better insight on Airbnb Washington DC investment in its 8 wards, take a look at the following data that shows 2017 guest arrivals and total host income:
|District Ward||2017 Guest Arrivals||2017 Host Income|
|Ward 1||72,500||$14.4 Million|
|Ward 2||84,100||$22.9 Million|
|Ward 3||15,200||$3.6 Million|
|Ward 4||26,800||$4.3 Million|
|Ward 5||70,700||$10.2 Million|
|Ward 6||134,500||$26 Million|
|Ward 7||13,800||$1.4 Million|
|Ward 8||10,000||$1 Million|
However, as a real estate investor, you have to be aware of the fact that DC lawmakers are trying to introduce new restrictions on Airbnb and other short-term rentals, since they want to target people who buy commercial properties and list all the units of the building for short-term rental on such sites – thereby cutting into the supply of affordable housing available to local residents. Therefore, in order for you to be on the right side of investment in Airbnb Washington DC and guarantee the success of your investment, you have to be familiar with and abide by DC’s laws and regulations on Airbnb. Before listing your property on Airbnb, make sure that your property falls within the safety guidelines of the District.
Although real estate investors are in constant search for locations that can generate the highest return on investment (ROI) rate, this, however, should not turn your eyes off of other important factors that contribute to the success of your Airbnb investment. You have to deeply study the fluctuations of the real estate market, the housing market in particular in the area you want to invest in, the rental demand, and Airbnb’s occupancy rate. Once you decide on the location, it is time to invest your efforts in preparing your property and its amenities and professionally market for it. But first, sign up for Mashvisor. By signing up for Mashvisor, you will find a platform that advises and guides you every step of the way until you make a successful and lucrative real estate investment and become a more seasoned real estate investor.
With that being said and with all the above-mentioned information about Airbnb Washington DC, the picture is clear now about the great potential of having a successful Airbnb Washington DC investment. You should remember that investing in Airbnb is not merely about listing a room in your house for short-term renting and expecting a flood of guests, it is an independent investment of its own that needs your time, efforts, and a foundation of knowledge about all aspects of the housing market in relation to short-term rentals. Successful investment in Airbnb short-term rentals does not rely only on the location, the type of property, the budget, or the investment strategy used separately; it actually depends on all these factors and most importantly on the commitment and determination of the real estate investors.