It’s a good thing Chicagoans have joined the Airbnb business as the city has proved to be profitable for Airbnb hosts, helping some Chicagoans pay 93% of their rent and other expenses. The huge city seems to be full of opportunities for Airbnb hosts and travelers, as there are Airbnb investment properties in 70 neighborhoods and a 43% Airbnb occupancy rate filled by national and international guests.
1. People Dig Chicago
Chicago is one of the top locations on Airbnb. It has the six things that make a city attractive: order (being organized), visible life, compact, mystery, scale and has its unique locality. If you are looking for an Airbnb investment property, try to find a location, not necessarily a city, which has these qualities and has the same high demand.
The Airbnb users coming to Chicago, 24% of them being international, are diverse and looking to explore what the great city offers, and 84% of Airbnb guests express wanting to live like locals. Chicago serves its 94% of Airbnb visitors who travel with their families or partners or friends, very well. Families enjoy the museums, Lincoln Park Zoo, the Navy Pier and more. There are plenty of activities for young adults and couples, from going to art galleries to enjoying the nightlife.
2. Chicagoan Hosts are Making Money
Naturally, with such a high percentage of tourists, Chicagoans are the seeing the fruits of their labors. The average Airbnb host in Chicago is making $8,300 per year from their listing by renting out their Airbnb investment properties 77 nights per year or 6 nights per month, on average. These numbers just represent hosts renting out their own homes while on vacation or renting one of their bedrooms.
With word getting around about the profits, it is not surprising more people took up Airbnb renting. Knowing the city gets around 8 million visitors per year and 79% of tourists already know of the neighborhood they’d like to explore, it is clear there is a cycle of the successful tourism, Airbnb performance in Chicago and hosts’ profitability.
Related: 6 Benefits of Investing in Income-Producing Properties
3. Have Chances to Make More Money If. . . .
Further data from Mashvisor examined what profits would be like if Chicagoans rented out a full-home, two-bedroom Airbnb rental properties, not shared. The study showed Chicago hosts have the potential to make an estimated $24,175 in annual revenue after paying expenses. Chicago was found to be the third city in highest revenue, following San Diego and Miami. The city seems to have a bright future for those who will continue hosting and for those who will expand.
4. Airbnb and Chicago Hit It Off
Chicago has been hosting Airbnb users since 2009. Airbnb completed a study analyzing the Airbnb activity in Chicago from June 2014 to June 2015 and measured 4,550 hosts and 165,000 visitors in Chicago, making $33.9 million in just one year. In February, Chicago adopted a 4.5% Airbnb tax, being one of the first cities to do so. Now that Chicago has adopted the tax, the controversy of Airbnb may soon diminish in the city. And with the successful financial impacts it has made for hosts, more Chicagoans may soon take up the Airbnb business, especially with the promising estimated revenue values. Making over $20,000 in a year is not an income, but is a nice cushion.
The Chicago Airbnb Report lists properties and gives an idea about season peaks and average rates for renting out entire homes. The report shows the high season in Chicago is from July to September while low season is from December to February.
Related: The Trend of Legalizing Airbnb Rentals
5. Airbnb Helps Chicago’s Economy
Thanks to Chicago Airbnb activity in 70 neighborhoods, Chicago’s economy is benefitting from this shared community. These neighborhoods are profiting from the tourism activity as 34% of Airbnb guest’s daytime spending occurs in the neighborhood they are staying in, which comes to an average of $256 per guest. The total economic impact is over $209 million dollars and over 2,100 jobs have been supported.
On a more personal level, Chicago has formed an exuberant community; creating relationships and understanding from people all over the world. Hosts and guest have expressed making friends and shared experiences with others through Airbnb.
What’s in it for me?
If you are thinking of exploring Chicago real estate or looking to expand on your Airbnb investment properties, check out the listed properties and neighborhoods. Use analytics to see you estimated return on investment in that neighborhood. For example, if you want see the listings in Streeterville neighborhood, you can see each property’s estimated expenses and income.
Are you interested in investing in Chicago Airbnb investment properties? What have your experiences been like renting out in Chicago? Do you have listings in more than one neighborhood?