Best (And Worst) Cities For Airbnb Around the World

You will discover London leading the global Airbnb market with over 71,000 listings, while cities like Bakersfield, CA and Norfolk, VA offer the highest returns on investment. Be cautious with heavily regulated markets like Paris and New York, where restrictions can limit your hosting potential. Consider emerging destinations like Gulf Shores, Alabama, which boasts a 93/100 AirDNA score and $67,000 average annual revenue. Understanding local regulations and seasonal patterns will determine your success in this dynamic market.

Key Points

• London leads globally with 71,000+ listings, offering strong market potential despite competitive conditions and regulatory oversight.
• Bakersfield, CA tops profitability charts with 6.31% cash-on-cash return and monthly incomes exceeding $3,000 with 75% occupancy rates.
• Paris has fallen to 14th place in listings due to strict regulations, making it challenging for new investors.
• Gulf Shores, Alabama emerges as a top performer with $67,000 average annual revenue and 14% year-over-year growth.
• Cities like Amsterdam and London face rental caps of 30 and 90 days respectively, limiting investment potential.

Top Global Markets by Number of Airbnb Listings

Three major global regions dominate today’s Airbnb marketplace, with Europe leading the pack through powerhouse cities like London, which boasts over 71,000 listings.

London stands as Europe’s Airbnb giant with 71,000+ listings, leading the charge in today’s global short-term rental market.

You’ll encounter other European hotspots like Rome and Barcelona contributing considerably to the continent’s dominance, though Paris has recently dropped to 14th place due to stricter regulations.

Travelers seeking more budget-friendly options will find prices around $82 nightly in Buenos Aires, while Latin America’s emerging presence can’t be ignored, with Buenos Aires and Rio de Janeiro each offering around 28,000 listings.

The Asia-Pacific region rounds out the top markets, where you’ll uncover Bali’s impressive 35,000 listings and Bangkok’s growing inventory of 15,000 properties.

While North American cities like New York maintain strong numbers with 38,617 listings, they’re facing increasing regulatory pressures that affect availability and pricing.

Most Profitable Cities for Short-Term Rentals

Where can you find the most lucrative Airbnb markets in today’s evolving short-term rental landscape? The data shows that several U.S. markets offer exceptional cash-on-cash returns, with Bakersfield, CA leading at 6.31% and Norfolk, VA following at 5.54%.

The short-term rental market has shown remarkable recovery and growth since mid-2021, with demand continuing to strengthen across major metropolitan areas.

Sun Belt cities continue to deliver strong performance, particularly in Florida where property values have grown over 25% year-over-year.

• Bakersfield and Richmond stand out with monthly incomes above $3,000 and occupancy rates over 75%
• Florida markets dominate with high growth and steady 60%+ occupancy rates
• International cities like Paris and London command premium daily rates ($245 and $180 respectively)

You’ll find affordable opportunities in emerging markets like Salt Lake City and Fresno, where monthly incomes reach $2,800-$2,900 with reasonable property costs and growing demand.

Rising Star Destinations for Airbnb Investment

Several emerging cities are reshaping the Airbnb investment landscape, offering unique opportunities for savvy investors who want to get ahead of the curve.

Gulf Shores, Alabama, distinguishes itself as a particularly promising market, boasting an impressive AirDNA score of 93/100 and generating an average annual revenue of $67,000, with a 14% year-over-year increase. The city’s diverse visitor demographics, including spring break crowds, summer families, and snowbirds, contribute to its year-round appeal.

The city’s investor-friendly regulations and consistent seasonal beach tourism make it an attractive option for those looking to expand their short-term rental portfolio.

Green Bay, Wisconsin, has also caught the attention of industry experts, securing a top spot on Airbnb’s 2025 destinations list.

While historical data is still emerging, the city’s rising popularity suggests significant potential for early investors who can establish a presence before the market becomes saturated.

Seasonal Performance and Market Fluctuations

While emerging markets offer exciting investment potential, understanding seasonal patterns can make or break your Airbnb success. Cities like Boston and Munich demonstrate how local events and weather patterns dramatically impact occupancy rates, with variations of up to 50% between peak and off-peak seasons. Monitoring local flight patterns can provide valuable insights into potential booking trends.

You’ll need to master dynamic pricing and strategic marketing to maximize your property’s potential year-round.

• Consider investing in destinations with complementary peak seasons, like pairing a winter ski resort with a summer beach property.
• Use data-driven pricing strategies to adjust rates during high-demand periods, such as Oktoberfest in Munich or Halloween in Salem.
• Partner with local event organizers and implement targeted promotions to boost bookings during shoulder seasons.

These seasonal fluctuations aren’t just challenges – they’re opportunities to optimize your revenue through strategic planning and market awareness.

Local Regulations and Their Impact on Rental Markets

Understanding local regulations has become essential for anyone looking to succeed in today’s Airbnb market, as cities worldwide implement increasingly complex rules to balance tourism and housing needs.

You’ll discover that regulations vary dramatically, from strict bans that can reduce listings by over 21% to more moderate approaches like seasonal caps and permit systems.

Cities like London and Amsterdam have adopted annual rental caps of 90 and 30 days respectively, while places like San Diego use neighborhood-specific license limits to control STR concentration.

If you’re considering investing, be aware that property values typically grow slower in regulated areas, and non-compliant hosts can face hefty fines up to $5,000 per day.

You’ll want to check local registration requirements, tax obligations, and enforcement mechanisms before making any decisions.

The shift from long-term to short-term rentals in popular tourist destinations has led to significant residential area changes that often require regulatory intervention to protect local communities.

Cities Leading in Unique and Premium Listings

Beyond managing regulations, you’ll discover that the most successful Airbnb markets are often defined by their distinctive and high-end accommodations.

Austin leads the U.S. market with 306 unique stays, while London dominates globally with the highest concentration of premium properties. From treehouses in Asheville to houseboats in Portland, unique rentals consistently command higher rates and occupancy levels.

• Austin’s diverse portfolio includes 15 treehouses, 93 farm stays, and 72 tiny homes, making it the only U.S. city in the global luxury top 20.
• Premium coastal markets like Malibu and Miami generate the highest revenue, with oceanfront properties averaging $300-400 per night.
• Emerging markets in Asia, particularly Seoul and Bangkok, show rapid growth in luxury listings, with occupancy rates exceeding 65%.

With cities like Salt Lake City and Cincinnati offering average nightly rates of just $69 and $79 respectively, budget-conscious travelers can still find unique accommodations at affordable prices.

The Wrap Up

Whether you’re planning to invest, host, or simply stay in Airbnbs, you will discover success by choosing cities with favorable regulations, strong tourism, and steady demand. Research seasonal patterns, analyze local laws, and study market trends before committing. While major capitals like London and Paris remain reliable choices, emerging destinations in Asia and Eastern Europe offer exciting opportunities for growth, innovation, and unique guest experiences.