LA is top Airbnb market in US, gaining on hotels
There are 23,413 short-term rentals in the city
Airbnb has been accused of price gouging for raising rental costs in Miami for the NFL championship game weekend. FOX Business’ Lauren Simonetti with more.
If you’ve ever wanted to visit Los Angeles, you’re apparently not alone.
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.
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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.
Here’s a look at a Santa Barbara home. (Credit: David Palermo)
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9. Tampa, Fla.
- 13.8 percent with 6,617 short-term rental units.
The Tampa skyline
8. New Orleans
- 14.2 percent with 5,847 short-term rental units.
The end of the London Avenue pump station is seen with the New Orleans skyline in the background. (REUTERS/Jonathan Bachman)
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7. Seattle
- 14.9 percent with 7,375 short-term rental units.
Seattle skyline panorama at sunset as seen from Kerry Park, Seattle, WA
6. San Diego
- 15.9 percent with 10,044 short-term rental units.
Beachgoers walk past a park bench at the beach in San Diego, California June 29, 2011. (REUTERS/Mike Blake)
5. Orlando, Fla.
- 16.2 percent with 20,768 short-term rental units.
Walt Disney World main entrance sign as seen driving from the south on World Drive into the park.
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4. New York City
- 16.8 percent with 20,972 short-term rental units.
Helicopter tour over Central Park, Manhattan, New York City
3. Austin, Texas
- 18 percent with 7,422 short-term rental units.
Austin skyline panorama
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2. Miami
- 19.2 percent with 11,069 short-term rental units.
Miami Skyline with palm trees
1. Los Angeles
- 22.3 percent with 23,413 short-term rental units.
Downtown Los Angeles aerial view.