The Hottest Short Term Rental Markets of 2024

The hottest short term rental markets has experienced explosive growth over the past few years, with travelers increasingly seeking unique, local experiences. As we look into 2024, certain markets stand out as particularly hot for short-term rental investments. If you’re considering entering this lucrative space or expanding your current portfolio, understanding the trends and opportunities in these markets is crucial.

1. Nashville, Tennessee

Nashville continues to be one of the top destinations for short-term rentals. Known for its vibrant music scene, delicious cuisine, and rich history, this city attracts millions of visitors each year. The demand for STRs is fueled by major events like the Country Music Awards and the Nashville Film Festival, as well as year-round attractions such as the Grand Ole Opry and various live music venues.

Why Invest?

• Strong tourism growth: Nashville’s tourism numbers have steadily increased, with over 16 million visitors in 2022 alone.
• Diverse traveler demographics: From bachelorette parties to family reunions, the range of guests creates consistent demand.
• Regulatory environment: While regulations exist, they tend to be favorable for STRs, especially when properties are registered and comply with local laws.

2. Austin, Texas

Austin, often dubbed the “Live Music Capital of the World,” is a hotspot for short-term rentals. The city’s appeal lies in its eclectic culture, tech industry, and numerous festivals, including South by Southwest (SXSW) and Austin City Limits (ACL).

Why Invest?

• Growing population: Austin’s rapid population growth leads to increased demand for accommodations.
• Festival-driven tourism: Events attract large crowds, creating peak seasons for STR bookings.
• Tech industry presence: A booming tech scene brings in business travelers who seek comfortable, homely stays.

3. Orlando, Florida

Orlando remains a perennial favorite for short-term rentals, primarily due to its world-famous theme parks, including Walt Disney World and Universal Studios. Families flock to this city year-round, making it a stable market for STR investments.

Why Invest?

• Year-round demand: With millions of visitors annually, the occupancy rates for STRs are consistently high.
• Family-oriented market: Properties that cater to families with amenities like pools and game rooms can command premium rates.
• Flexible rental policies: Orlando has a relatively straightforward regulatory framework for STRs, making it easier for new investors to enter the market.

4. Denver, Colorado

The allure of the Rocky Mountains, combined with a vibrant urban scene, makes Denver an attractive market for short-term rentals. Whether it’s skiing in the winter or hiking in the summer, Denver offers year-round appeal.

Why Invest?

• Outdoor activities: The proximity to national parks and ski resorts attracts nature lovers and adventure seekers.
• Cultural events: The city hosts numerous festivals and events, keeping demand high throughout the year.
• Growing tech scene: Like Austin, Denver’s burgeoning tech industry brings in a steady stream of business travelers.

5. Miami, Florida

Miami’s sun-soaked beaches, vibrant nightlife, and cultural diversity make it one of the hottest STR markets. The city attracts tourists from around the globe, particularly in the winter months when the weather is at its best.

Why Invest?

• International appeal: Miami attracts a diverse range of international travelers, ensuring a steady stream of guests.
• High occupancy rates: The demand for STRs remains robust, especially in areas like South Beach and Downtown Miami.
• Luxury market potential: The high-end rental market offers lucrative opportunities for investors willing to enter the luxury STR space.

6. New Orleans, Louisiana

New Orleans is a city steeped in culture, history, and celebration. From Mardi Gras to Jazz Fest, the events that draw crowds create substantial opportunities for short-term rentals.

Why Invest?

• Unique experiences: Guests are often looking for an authentic New Orleans experience, making unique properties particularly attractive.
• Event-driven demand: Major festivals and events result in peak rental times, boosting occupancy rates.
• Regulatory advantages: The city has a well-defined regulatory structure for STRs, making it easier for investors to navigate.

7. San Diego, California

With its stunning beaches, pleasant weather, and family-friendly attractions, San Diego is a prime location for short-term rentals. The city attracts both vacationers and business travelers year-round.

Why Invest?

• Consistent tourist traffic: Attractions like the San Diego Zoo and Balboa Park ensure a steady flow of visitors.
• Family-focused market: STRs that cater to families can thrive in this environment.
• Pleasant climate: The year-round mild climate contributes to sustained demand for vacation rentals.

8. Phoenix, Arizona

Phoenix is gaining traction as a desirable STR market due to its warm climate and outdoor activities. The city is particularly popular in the winter months when travelers seek sunshine and outdoor adventures.

Why Invest?

• Winter tourism boom: The influx of visitors during the colder months ensures high occupancy rates.
• Affordable properties: Compared to other major cities, Phoenix offers more affordable property options, making it accessible for new investors.
• Growing popularity: As more people discover the area’s attractions, demand for STRs is on the rise.

9. Charleston, South Carolina

Charleston’s rich history, stunning architecture, and Southern charm make it a beloved destination. The city attracts tourists year-round, particularly during the spring and fall.

Why Invest?

• Historic appeal: Tourists are drawn to the city’s historic sites, making STRs a preferred choice for accommodations.
• Strong occupancy rates: With a consistent flow of visitors, STRs in Charleston see high occupancy.
• Regulatory clarity: Charleston’s STR regulations are transparent, helping investors navigate the legal landscape.

10. Seattle, Washington

Seattle’s mix of urban and natural attractions, including the Space Needle and its proximity to the Pacific Northwest’s natural beauty, make it a hot market for short-term rentals.

Why Invest?

• Diverse attractions: The combination of city life and outdoor activities attracts a wide range of visitors.
• Strong corporate market: The presence of major companies brings in business travelers seeking STRs.
• Cultural events: Events like the Seattle International Film Festival and the Seattle Art Fair create peaks in demand.

Conclusion

The short-term rental market continues to evolve, and 2024 presents exciting opportunities for investors. From vibrant urban centers to scenic destinations, these hotspots offer the potential for lucrative returns. As you consider your next investment, keep an eye on market trends, local regulations, and traveler preferences to ensure your STR venture is a success.

By selecting a hot market and aligning your property with the needs of today’s travelers, you can position yourself for success in the booming short-term rental industry. Whether you’re a seasoned investor or just starting, the right market can make all the difference.