Jun 3, 2024 - News

How much Airbnb renters in Phoenix can earn

A table showing Airbnb-friendly apartment earnings by U.S. Metro Areas. San Diego leads with average earnings at $9,200 per host
Data: Airbnb; Table: Axios Visuals

More than two dozen metro Phoenix apartment buildings are allowing tenants to bank extra cash by renting out their units for short stays through Airbnb.

Why it matters: Rental affordability has plunged in recent years, and those who rent are feeling especially bad about their finances, according to the Axios Vibes survey by The Harris Poll.

State of play: Tenants in metro Phoenix who host on Airbnb typically earn about $3,600 a year, per 2023 figures shared with Axios.

  • Unsurprisingly, complexes in tourist favorites Scottsdale and North Phoenix have the highest earning potential, according to Airbnb.
  • Sentral Old Town, Camden San Paloma and Camden North End units pull in the most, with each averaging more than $900 in weekly Airbnb earnings.

Between the lines: Many landlords don't permit short-term rentals, but some companies with big portfolios such as Greystar have joined Airbnb's apartment platform.

  • Apartments accounted for about 16% of Airbnb's U.S. listings in April 2024, per AirDNA, a short-term rental analytics firm.

How it works: In 2022, Airbnb launched Airbnb-friendly apartments (AFA), a marketplace to help renters find apartment buildings where they can use their primary residences for part-time hosting.

  • The platform grew last year to include more than 400 apartment buildings across 43 markets nationwide. Phoenix has 26 AFA buildings.
  • Buildings that partner with Airbnb receive a share of the total booking revenue, typically between 5% and 25%.
  • Roughly 1,000 U.S. renters are currently hosting through the program, a number Airbnb hopes to boost.

What they're saying: "Everybody should have the ability to host, or share their home part time, to make some extra income," Jesse Stein, Airbnb's global head of real estate, tells Axios.

  • "We don't feel like homeownership should be a barrier."

Reality check: Many researchers attribute rising rent and home prices in part to an influx of vacation rentals that have exacerbated Arizona's already severe housing shortage.

What's next: Airbnb says it will advocate for short-term rental rules that allow renters in more cities to share their space.

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