A new report from Airbnb ranks the greater Los Angeles area as the nation’s fourth most profitable region for new Airbnb hosts with one U.S. listing during the first six months of 2021.
L.A.-area hosts collectively earned $6.2 million in revenue through June, the study said, outpacing the North Carolina Coast ($4 million), Smoky Mountains ($3.9 million), Poconos ($3.5 million), Houston ($3.3 million), Catskills and Hudson Valley ($3.1 million) and Denver ($2.9 million).
The company declined to reveal how many new Airbnb hosts offered rentals in the L.A. area during the first half of 2021.
Atlanta topped the list for the first half of 2021, with hosts earning a combined $8.5 million in revenue. That was followed by the South Florida Gulf Coast ($8 million) and Phoenix ($6.3 million).
Half of the new listings that were booked in early 2021 secured a reservation request within four days of being listed, the company reported, while annual earnings for existing Airbnb hosts between April 2020 and April 2021 averaged $9,600.
The study shows 60% of new hosts were women who earned more than $83 million combined in the U.S. since January 2021. New senior hosts ages 60 and up earned more than $30 million.
Airbnbs have disrupted the hotel industry, stealing marketshare and putting pressure on hotel rates, and their popularity as a rental alternative increased during the worst of the COVID-19 pandemic when many hotels were temporarily shuttered.
A lifesaver and source of extra income
Natalia Paez said her three-bedroom, one-bath home in Woodland Hills has been a lifesaver and a steady source of extra income since she and her husband began offering it as an Airbnb rental in March.
“We recently bought another house in our neighborhood that’s bigger, and then the pandemic hit,” the 38-year-old entrepreneur said. “I was thinking about doing an Airbnb with our other home. I thought it was a good idea in case we lost our jobs because of COVID.”
As it turned out, the two tattoo shops the couple run in Studio City and Echo Park had to close for several months during the spring, as they were considered non-essential businesses. Their Airbnb business helped bridge the gap.
“It really helped us survive,” Paez said. “Hotels will charge $200 to $300 a night, but we’re charging $215 a night and the house has a kitchen and a front and backyard. You don’t get that with hotels.”
Hosts set their own rental prices and are able to keep up to 97% of their earnings, Airbnb spokesman Samuel Randall said.
So what do people look for when renting a home?
“We’ve seen that people tend to prioritize places that allow them to work remotely — homes with WiFi and office setups,” he said. “They also look for places that are pet-friendly, and homes with hot tubs and swimming pools are popular.”
What’s the attraction?
Randall said the greater L.A. area is a popular destination for Airbnb guests because of its diverse landscape and myriad entertainment options. Disneyland, Six Flags Magic Mountain and Universal Studios are go-to destinations, as well as Hollywood, the La Brea Tar Pits and the Queen Mary.
Many people who’ve been cooped up during the COVID-19 pandemic are also taking longer trips.
“In many cases, that weekend trip is turning into five days or more,” Randall said. “People are becoming flexible regarding when and where they travel. Rural locations near national parks remain popular.”
Paez’ Airbnb has hosted about 30 guests. Most stay about four nights, she said, although others have stayed a week or more. There is work involved, but Paez has help.
“I have a really great cleaning lady,” she said. “But I help her out a bit to make sure the towels are folded the way I like and I make sure everything is stocked.”
