{"id":187480,"date":"2026-04-10T08:27:33","date_gmt":"2026-04-10T14:27:33","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187480"},"modified":"2026-04-10T08:27:37","modified_gmt":"2026-04-10T14:27:37","slug":"airbnb-has-evolved-heres-how-investors-should-keep-up","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/airbnb-has-evolved-heres-how-investors-should-keep-up","title":{"rendered":"Airbnb Has Evolved\u2014Here’s How Investors Should Keep Up"},"content":{"rendered":"

There has been a lot of conjecture about the <\/span>short-term rental<\/span><\/a> market recently. Many hosts have complained about<\/span> oversaturation<\/span><\/a>, while increased<\/span> local restrictions<\/span><\/a> have led many investors to revert to<\/span> regular yearly tenants or mid-term rentals<\/span><\/a>.<\/span><\/p>\n

For those committed to booking short-term rental guests, it’s clear that the landscape has shifted, and simply providing a spare room and a few towels will no longer cut it. Increasingly, guests are after luxurious experiences with resort-style residences and are willing to pay top dollar for the privilege.\u00a0<\/span><\/p>\n

While glam pads at Coachella or the Catskills are curated and managed by well-heeled, <\/span>upscale management companies<\/span><\/a>, that doesn\u2019t mean everyday mom-and-pop investors have to <\/span>be squeezed<\/span> out of the STR luxury rental experience\u2014or the profits it brings.<\/span><\/p>\n

Turning Drab to Fab<\/span><\/h2>\n

According to a recent report in<\/span> Forbes<\/span><\/a><\/em>,<\/span><\/a> everyone can get in on the luxury trend\u2014whether you own an estate, a small <\/span>multifamily<\/span><\/a> building, or a condo. Upgrading it with luxury hotel-like amenities has seen a dramatic return to profitability in the STR world.<\/span><\/p>\n

Stephen Wendell, founder and CEO of Mountain Shore Properties, told <\/span>Forbes<\/span><\/em>:<\/span><\/p>\n

“The \u2018easy money\u2019 phase is over, but the asset class isn\u2019t. Short-term rentals have matured into a true hospitality business\u2014returns now depend on design, operations, and differentiation, not just owning the asset. Airbnbs can still be a great investment, but travelers now expect hotel-like amenities; therefore, Airbnb owners and operators have had to level up to succeed. I view this as a healthy correction that was inevitable.\u201d<\/span><\/em><\/p>\n

Leveling up means upgrading features such as fire pits, outdoor cooking facilities, and curating interiors accordingly. The investment\u2014according to<\/span> Rental Scale Up,<\/span><\/a> a subsidiary of the revenue management and market data platform PriceLabs\u2014results in greater revenue and insulation from the vagaries of the rest of the short-term rental arena.<\/span><\/p>\n

\u201cWe\u2019ve adapted our short-term rentals for wellness-focused travelers by prioritizing calm, light-filled spaces with ocean views, private outdoor areas when possible, and a clean, serene design,\u201d Maximillian A. Kostyashkin, CEO of<\/span> MAK Vacation Rentals<\/span><\/a>, a Miami-based company, told BiggerPockets.<\/span><\/p>\n

Demand Splits Between Chill and Thrill<\/span><\/h2>\n

Curated luxury stays are increasingly split between <\/span>rest and relaxation<\/span><\/a> with a focus on wellness and high-energy events such as concerts and sports, according to<\/span> Airbnb<\/span><\/a>. However, trying to have your rental fit into a one-size-fits-all category is not a good idea, Rental Scale Up advises. Picking a lane, sticking to it, and promoting your stay accordingly is the best bet to gain traction and attract guests.<\/span><\/p>\n

Whether your short-term rental is catered to the <\/span>World Cup<\/span><\/a> or wellness, providing the right experience for your guests will bring dividends. <\/span>As the World Cup is once every four years and wellness is a lifestyle choice <\/span>without an<\/span> expiration date, catering to the latter will capture the widest market.<\/span><\/p>\n

Market researchers<\/span><\/a> forecast that wellness tourism <\/span>is set<\/span> to grow by nearly 10% in 2030, from roughly $974.6 billion to over $1.06 trillion, as travelers seek trips geared toward stress reduction, preventive health, and mental recharge. For property owners who can fit it into their budgets, that means adding amenities such as cold plunges, saunas, yoga decks, filtered water, and sleep-optimized bedrooms.\u00a0<\/span><\/p>\n

The good news is that it\u2019s not as expensive as it sounds and can generate sizable returns. <\/span>According to<\/span> Market Reports World<\/span><\/a>, young professionals, expats, and city dwellers are willing to pay 4.5%\u20137.5% more <\/span>in rent<\/span> per square foot for wellness-themed stays.<\/span>\u00a0\u00a0<\/span><\/p>\n

\u201cIn competitive-priced apartments, the luxury comes from practical touches: spotless presentation, comfortable furnishings, personalized service, and concierge add-ons like in-suite massages, facials, private dining, and beach, spa, or fitness access (where available),\u201d Kostyashkin said. \u201cThe goal is to make the stay feel restorative and elevated while still keeping it affordable.\u201d<\/span><\/p>\n

Safeguarding Your Investment<\/span><\/h2>\n

It\u2019s a good idea to do some research before you upgrade to ensure your market can justify the added expense. AirDNA\u2019s<\/span> Best Places to Invest in Short-Term Rentals<\/span><\/a> report provides segment-specific rankings that investors can filter according to budget and location.\u00a0<\/span><\/p>\n

What is interesting about the report is that home prices are affordable, and the revenue potential is considerable. \u201cThis year’s results challenge some of the usual assumptions about where short-term rental opportunities exist,” said Jamie Lane, chief economist at AirDNA, in a <\/span>press release<\/span><\/a>. “When revenue and growth <\/span>aren’t viewed<\/span> in isolation, affordability plays a much bigger role in how returns stack up across markets.\u201d<\/span><\/p>\n

Across the top 10 markets listed, the average home cost $296,000, and the annual revenue potential was $40,500, yielding <\/span>around<\/span> 14%. The markets attract year-round demand driven by workforce travel, healthcare, education, and government- or military-related activity. That doesn\u2019t mean upgrading amenities to ensure <\/span>a more well-rounded, wellness-themed stay won\u2019t be appreciated by travel-weary guests with stressful jobs<\/span>.<\/span><\/p>\n

\u201c2026 is one of the strongest environments we’ve seen for short-term rental investment in recent years,” said Rohit Bezewada, CEO of AirDNA, in a press release. “This report lays out the framework to identify the best opportunities, and investors can apply the same approach within AirDNA to evaluate deals at a more granular level.\u201d<\/span><\/p>\n

AirDNA\u2019s Top Markets to Invest in 2026<\/span><\/h2>\n