New research commissioned by UK financial services company comparethemarket.com shows that Tel Aviv is the fifth-best city globally to earn rental revenues via AirBnb, while Jerusalem ranked 10th.
Tel Aviv recorded a monthly AirBnb rent of nearly $7,000 ($6,907.75), while Jerusalem recorded close to $6,000 ($5,869.89).
Of the top 10 cities ranked, five of them were in the US, two were in Japan, two were in Israel and one was in the UAE (Dubai). Las Vegas had the highest monthly Airbnb rent revenue of more than $10,000 ($10,499.37).
The research, which compared average monthly rental prices to average AirBnb monthly revenues in any given city, also showed that Jerusalem landowners stand to make 243% more revenue from AirBnb than traditional residential rentals, while Tel Aviv homeowners could stand to earn 192% more from AirBnb rentals.
While AirBnb rental revenue could rake in $6,000-$7,000 per month in Israel, traditional rental agreements could bring in only about two-thirds of that: $4,156.52 in Jerusalem and $4,542.30 in Tel Aviv.
While there is no guarantee a landlord will fill their AirBnb capacity on a monthly basis, most cities yield far higher profits for AirBnb rentals than long-term residential contracts. Popular tourist attraction Chiba in Japan has AirBnb revenues of $6,433.59 – compared to a mere $760.39 average monthly rent, meaning renters had the potential to earn more than eight times as much by offering short-term rentals on AirBnb.
While AirBnb rentals typically command much higher premiums, there are exceptions to this trend. Hong Kong, for example, commands an average monthly rent of $3,435.95 – compared to just over half of that ($1,770.81) in monthly AirBnb rental revenues. This is likely due to apartment sizes there, as the average apartment is 430 square feet according to the South China Morning Post. Hong Kong does show, however, that AirBnb prices factor in far more than just the city the rental is offered in.
Founded in 2008, AirBnb is an online marketplace where homeowners can offer their properties as short-term vacation rentals. AirBnb had $4.7 billion in revenues in 2019, though this dropped to $3.4b. in 2020 amid the outbreak of the COVID-19 pandemic.