If you’ve ever wanted to visit Los Angeles, you’re apparently not alone.
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L.A. is the top city for short-term rentals like Airbnb in the U.S. going by both the number of units available and their share of the market compared to traditional hotel rooms, according to a report from commercial real estate services and investment firm CBRE.
Los Angeles saw a 9 percent increase in the number of short-term rental units from 2018 to 2019, according to the report. Short-term rentals now account for 22.3 percent of the market there, which is more than double the national average of 10.4 percent.
L.A. has been the top market for short-term rentals since it passed New York in 2018, according to the report. New York had a decrease in short-term rental market share for the first time in 2019 because of a slow increase in the number of units compared to a larger increase in the number of traditional hotel rooms.
Ten big cities like New York and Los Angeles accounted for more than half of the short-term rental supply in the U.S. in 2014, the report found. Since then, most of the growth has been outside those 10 markets, which account for about 25 percent of the supply. Growth in many of those large markets has been slowed by new regulations, according to CBRE.
There are several reasons short-term rentals can appeal to travelers over hotels. The report found that a one-bedroom short-term rental will cost an average of 5.3 percent less than a hotel room. In pricey cities like Los Angeles, San Francisco and New York, those savings average more than 25 percent.
These are the 10 markets with the greatest share of short-term rental units compared to hotels, among the top 30 hotel markets, according to the report:
10. San Jose/Santa Cruz, Calif.
- 13.5 percent with 4,943 short-term rental units.
9. Tampa, Fla.
- 13.8 percent with 6,617 short-term rental units.
8. New Orleans
- 14.2 percent with 5,847 short-term rental units.
- 14.9 percent with 7,375 short-term rental units.
6. San Diego
- 15.9 percent with 10,044 short-term rental units.
5. Orlando, Fla.
- 16.2 percent with 20,768 short-term rental units.
4. New York City
- 16.8 percent with 20,972 short-term rental units.
3. Austin, Texas
- 18 percent with 7,422 short-term rental units.
- 19.2 percent with 11,069 short-term rental units.
1. Los Angeles
- 22.3 percent with 23,413 short-term rental units.