The Airbnb occupancy rate is one of the most important factors which you should consider before deciding to buy an Airbnb investment property in a particular city or neighborhood. The Airbnb rental business is on the rise all around the world, and the US is slowly losing its leader position to other destinations, primarily major cities in Europe. While more than half of all Airbnb listings were in the US two years ago, only about 20% of current Airbnb listings are located within the US. This change in distribution is not due to a decline in the US but because of a rise elsewhere.
Here we introduce you to five of the best international cities for Airbnb occupancy rate. We have selected cities from three different continents. As expected, these are large, densely populated cities, which host many important tourist attractions, big companies, major industries, and sizeable universities.
Maybe unsurprisingly, the French capital has now become the top Airbnb city destination. Paris has more than 40,000 active listings on Airbnb; for comparison, New York, the second most popular city on Airbnb, has 34,000 listings. The growth there has been massive – from just 4,000 listings in 2012 to over 40,000 a few years later. Deservedly, Paris became the host of the Airbnb Open 2015, the annual host get-together of the world’s leading community-driven hospitality company. This was the first time in which the event was held outside Airbnb’s home city of San Francisco.
There is probably barely anyone interested in real estate investing who needs an explanation why Paris is such a popular touristic destination. The Eiffel Tower, the Louvre, Notre Dame, Arc de Triomphe, Montmartre, and Sacré-Coeur are just a few of the attractions for all history-, archeology-, and art-lovers around the globe. France is home to some of the most renowned fashion designers and cosmetic brands, which also makes it an irresistible shopping destination. Champs-Élisées in the heart of Paris is heaven for any shopaholic. Visiting the iconic amusement park of Disneyland is a dream-come-true for any kid – and many adults – around the world. In addition to all these and many other tourist and cultural attractions, Paris also hosts several large universities including Paris-Sorbonne University, Sciences Po Paris, Paris Descartes University, and the American University of Paris, to name a few. As these universities host many students from outside Paris and France, this further increases the number of visitors to the city, especially around graduation times.
Although Paris offers plenty of reasons for people from around the globe to visit it, this is not enough to turn it into an Airbnb top destination. Many popular touristic cities continue to challenge the legality of Airbnb, while the authorities of Paris are currently embracing this idea. This combination of positive factors has turned Paris into one of the top Airbnb cities by number of listings per 1,000 inhabitants – with 19.3, after Miami (21.1) and Copenhagen (20.4).
Paris Airbnb Occupancy Rate: 58.5%
The Dutch capital is another leading Airbnb destination in Europe after Paris, London, Rome, Barcelona, Copenhagen, and Milan. Though significantly smaller than Paris with a population of less than 1 million, Amsterdam still has a lot to offer to its nearly 14 million annual visitors because of its vibrant cultural and historical scene. The Rijksmuseum, the Van Gogh Museum, and the Stedelijk display anything from the Old Masters through the expressionists to modern and contemporary art. The unique system of canals offers the opportunity for canal cruising as well as walks on the bridges and around the canal houses. The typical Dutch classics such as tulips, windmills, and cheese are another major attraction in Amsterdam. In addition, Amsterdam hosts over 300 festivals per year, or nearly one every day. A particularly important event which definitely brings the occupancy rate up is the King’s Birthday, 27 April, which offers a street party and free market for two days of celebration. At the end of May, the Holland Festival begins, which is an important artistic event attracting many visitors. The summer season is also a popular time for open air festivals, concerts, and theaters. Amsterdam also hosts a few major universities: the University of Amsterdam, Vrije Universiteit Amsterdam, and the Amsterdam University of Applied Sciences.
Amsterdam is listed as one of the cities where Airbnb hosts make the most money as the average daily rate amounts to $142. Actually, Amsterdam exhibits a higher Airbnb occupancy rate than Paris at 60.5%. It also ranks high in the number of listings per 1,000 inhabitants at 12.0.
Amsterdam Airbnb Occupancy Rate: 60.5%
Airbnb Hong Kong
Hong Kong is a city which holds a great potential for the Airbnb rental business because of the ever-growing number of visitors which is now close to 60 million per year. Hong Kong is a vibrant, densely populated city. Unlike Paris and Amsterdam, the main attractions here are business rather than leisure related. Hong Kong is a major port and a global financial center. Nevertheless, Disneyland, the Ocean Park, Victoria Peak, Lantau Island, Tian Tan Buddha, Po Lin Monastery, and Lamma Island are also popular touristic attractions. Chinese New Year celebrations make this particular time of the year a rather busy period in Hong Kong.
Still, Airbnb is kind of illegal in Hong Kong at the moment as operating any guesthouse for periods of less than 30 days requires a guesthouse license, which is essentially a license to operate a hotel with all the minimum requirements covered. However, the reality is that Airbnb rentals are constantly on the rise in Hong Kong as expected from any fast-paces market with so many international visitors.
Hong Kong Airbnb Occupancy Rate: 58.6%
Singapore is a popular tourist destination which welcomed more than 15 million visitors last year. Singapore attracts visitors with its shopping, island resorts, cultural and historical landmarks, nature sight-seeing, and dining. Singapore is also striving to be a major business hub. Its economy has been ranked as the most open in the world, also offering a highly attractive investment environment and political stability. Singapore is also considered a global financial hub. All these business-related factors further increase the number of visitors.
Singapore Airbnb Occupancy Rate: 63.1%
Montreal is the second most populous municipality in Canada, which attracted close to 10 million visitors last year. The rich history of Montreal, which was Canada’s industrial and financial center for over a century and a half, left a variety of buildings including factories, warehouses, mills, and refineries that are worth a visit. Montreal hosts 50 National Historic Sites of Canada, more than any other city in the country. For those who like green spaces, Montreal offers several parks including Mount Royal Park, designed by the same landscape architect as Central Park in New York. Last but not least, Montreal hosts a few universities: Université de Québec, Université de Montréal, Concordia University, and McGill University.
Montreal Airbnb Occupancy Rate: 60.2%
If you are still considering Airbnb rentals in the US, you can search Mashvisor for Airbnb occupancy rates as well as top Airbnb cities and neighborhoods.