Airbnb Asheville, North Carolina: Market Data, Laws & Investor Guide

Asheville, North Carolina has emerged as a top destination for Airbnb entrepreneurs in 2024. This vibrant mountain city offers a perfect blend of natural beauty, thriving arts scene, and booming tourism industry, making it an ideal location to launch a profitable short-term rental business.

In recent years, Asheville has experienced a surge in popularity among travelers seeking unique, authentic experiences. According to Airbnb data, the city saw a remarkable 35% increase in bookings from 2023 to 2024, with an average occupancy rate of 78% throughout the year. This high demand for short-term rentals presents a lucrative opportunity for savvy investors looking to capitalize on the growing market.

One of the key factors driving Asheville's appeal is its stunning natural surroundings. Nestled in the Blue Ridge Mountains, the city offers breathtaking views, countless hiking trails, and outdoor adventures that attract nature enthusiasts from around the world. In a recent survey, 82% of Airbnb guests cited the area's natural beauty as a primary reason for choosing Asheville.

Moreover, Asheville's thriving arts and culture scene has made it a magnet for creative types and tourists alike. The city boasts a vibrant downtown filled with galleries, music venues, and farm-to-table restaurants that showcase the region's unique character. This cultural richness not only draws visitors but also enhances the overall guest experience, leading to glowing reviews and repeat bookings for Airbnb hosts.

Tourism Boom: Asheville's tourism industry has been on a steady rise, with visitor spending reaching a record $2.6 billion in 2024. This influx of tourists has created a strong demand for short-term rentals, ensuring a consistent stream of bookings for Airbnb hosts.

Favorable Regulations: Unlike some cities that have imposed strict regulations on short-term rentals, Asheville has embraced the Airbnb economy. The city's permissive policies and streamlined permitting process make it easier for hosts to get started and operate their businesses successfully.

High Rental Rates: Asheville's Airbnb rental rates have consistently outperformed those of other popular destinations in the region. In 2024, the average daily rate for an Airbnb in Asheville was $185, compared to $150 in nearby Chattanooga and $130 in Knoxville. These higher rates translate into greater earnings potential for hosts.

Year-Round Appeal: While many vacation destinations experience seasonal fluctuations, Asheville's diverse attractions ensure a steady flow of visitors throughout the year. From fall foliage tours to summer music festivals, there's always a reason to visit, providing Airbnb hosts with a reliable income stream.

As the travel industry continues to evolve in the wake of the pandemic, Asheville's unique blend of natural beauty, cultural richness, and strong tourism numbers make it a prime location for starting an Airbnb business in 2024. With careful planning and a commitment to providing exceptional guest experiences, hosts can tap into this thriving market and build a successful short-term rental venture in this charming mountain city.

Asheville Short-Term Rental Market Analysis

Asheville's short-term rental market has experienced steady growth in recent years, driven by the city's thriving tourism industry and popularity as a destination for outdoor enthusiasts, foodies, and art lovers. Here's a closer look at the key metrics and trends shaping Asheville's Airbnb market in 2024:

Occupancy Rate: According to AirDNA, Asheville's average monthly occupancy rate for short-term rentals was 70% in 2024, a 3% increase from the previous year. This high occupancy rate indicates strong demand for vacation rentals in the area.

Nightly Rate: The average daily rate for Asheville short-term rentals in 2024 was $233, a 5% increase from 2023. This growth in nightly rates suggests that hosts are capitalizing on the city's popularity and able to command higher prices.

Seasonality: Asheville experiences moderate seasonality in its short-term rental market, with peak demand occurring during the summer months and fall foliage season. According to AirDNA, the highest occupancy rates are typically seen in October, while January and February have the lowest occupancy.

Growth Rate: Asheville's short-term rental market has experienced significant growth in recent years. Between 2022 and 2024, the number of active listings increased by 8%, indicating a growing interest in the market from both hosts and investors.

Tourism Industry Growth: Asheville's tourism industry has been on an upward trajectory, with visitor spending reaching nearly $3 billion in 2024. This growth has been fueled by the city's unique blend of natural beauty, vibrant arts scene, and acclaimed food and beverage offerings.

Asheville, North Carolina Key Events and Festivals:

• Asheville Celtic Festival (February 17-18, 2024)
• GRINDfest (May 2024, dates TBD)
• Blue Ridge Pride Festival (June 2024, dates TBD)
• Hola Asheville (June 2024, dates TBD)
• Chihuly at Biltmore Estate (Through January 5, 2025)
• Christmas at Biltmore (November 2, 2024 - January 5, 2025)

These events and festivals attract visitors from around the region and beyond, driving demand for short-term rentals during specific periods.

Booking Durations: While exact data on booking durations is limited, anecdotal evidence from Airbnb host forums suggests that Asheville sees a mix of short stays (2-4 nights) and longer stays (7+ nights), particularly during peak seasons. The strength of the mid-term rental market (30+ days) is growing, with 36% of listings offering a minimum stay of 30 days or more, indicating an opportunity for hosts to cater to remote workers and extended-stay travelers.

In conclusion, Asheville's short-term rental market is thriving, driven by the city's strong tourism industry, diverse attractions, and growing popularity as a destination. With high occupancy rates, increasing nightly rates, and a growing number of active listings, the market presents attractive opportunities for both hosts and investors in 2024 and beyond.

Best Neighborhoods in Asheville for an Airbnb Business

When searching for the ideal location to start an Airbnb business in Asheville, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA and Mashvisor, along with local knowledge, we've identified the top 5 neighborhoods in Asheville for starting a successful Airbnb venture.

1. Downtown Asheville

As the heart of the city, Downtown Asheville is a prime location for Airbnb hosts. With its vibrant arts scene, historic architecture, and numerous restaurants and shops, this neighborhood attracts a steady stream of tourists year-round.

1. Average Occupancy Rate: 78%
2. Average Daily Rate: $225
3. Airbnb Seasonality: High demand throughout the year, with peaks in summer and fall
4. Estimated Annual Revenue: $64,100

According to Zillow, the median home value in Downtown Asheville is $545,500 as of August 2024. For optimal return on investment, consider investing in a 2-bedroom property, as they tend to generate the highest revenue in this area.

2. Montford Area Historic District

Located just north of Downtown, the Montford Area Historic District offers a charming, residential setting while still being close to the city's main attractions. This neighborhood is known for its stunning Victorian and Arts and Crafts-style homes, making it an appealing choice for Airbnb guests.

1. Average Occupancy Rate: 74%
2. Average Daily Rate: $180
3. Airbnb Seasonality: Consistent demand, with slight increases in summer and fall
4. Estimated Annual Revenue: $48,600

The median home value in the Montford Area Historic District is $679,000 (Zillow, 2024). Investing in a 3-bedroom property in this neighborhood can provide an excellent return on investment.

3. River Arts District

The River Arts District, located along the French Broad River, has transformed from an industrial area into a thriving arts community. With its unique studios, galleries, and restaurants, this neighborhood attracts a diverse mix of tourists and locals alike.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $160
3. Airbnb Seasonality: Steady demand, with peaks in spring and summer
4. Estimated Annual Revenue: $42,050

The median home value in the River Arts District is $400,000 (Zillow, 2024). A 1-bedroom or studio apartment can provide a solid return on investment in this up-and-coming neighborhood.

4. Biltmore Village

Biltmore Village, located near the famous Biltmore Estate, offers a historic charm and easy access to one of Asheville's most popular attractions. This neighborhood features quaint shops, restaurants, and tree-lined streets, making it an attractive option for Airbnb guests.

1. Average Occupancy Rate: 76%
2. Average Daily Rate: $200
3. Airbnb Seasonality: High demand during Biltmore Estate's peak seasons
4. Estimated Annual Revenue: $55,500

The median home value in Biltmore Village is $810,000 (Zillow, 2024). Investing in a 2-bedroom or 3-bedroom property can yield a strong return on investment, given the neighborhood's proximity to the Biltmore Estate.

5. West Asheville

West Asheville has emerged as a trendy, bohemian neighborhood known for its eclectic mix of shops, restaurants, and breweries. Its laid-back vibe and proximity to Downtown make it an increasingly popular choice among Airbnb guests.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $140
3. Airbnb Seasonality: Steady demand throughout the year
4. Estimated Annual Revenue: $35,800

The median home value in West Asheville is $450,000 (Zillow, 2024). A 1-bedroom or 2-bedroom property can provide a good return on investment in this up-and-coming neighborhood.

By considering these top neighborhoods and their respective data, hosts can make informed decisions when starting an Airbnb business in Asheville. It's essential to balance factors such as home values, estimated revenue, and occupancy rates to determine the best investment strategy for your specific goals and budget.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Asheville

To maximize your revenue as an Airbnb host in Asheville, it's crucial to set competitive prices and offer in-demand amenities. When determining your pricing strategy, consider factors such as seasonality, local events, and the prices of similar listings in your area. Conducting thorough market research and using dynamic pricing tools can help you optimize your rates and attract more bookings.

According to AirDNA data, the top-performing Airbnb listings in Asheville share several common amenities that contribute to their success:

1. Hot tubs: Listings with private hot tubs or jacuzzis can command higher nightly rates and attract more bookings, especially during colder months.
2. Outdoor spaces: Properties with well-maintained decks, patios, or balconies are highly sought-after, as they allow guests to enjoy Asheville's scenic beauty.
3. Unique decor: Listings with distinctive, locally-inspired decor that showcases Asheville's artistic vibe tend to stand out and receive more positive reviews.
4. Pet-friendliness: With many travelers bringing their furry companions along, pet-friendly accommodations are in high demand.
5. Workspace: As remote work becomes more common, listings with dedicated workspaces and reliable Wi-Fi are increasingly popular among guests.

In terms of property types, the most popular Airbnb listings in Asheville are:

1. Entire homes (1-2 bedrooms):

1. Average property price: $400,000 - $600,000
2. Potential annual revenue: $50,000 - $70,000

2. Apartments and condos (studio-2 bedrooms):

1. Average property price: $200,000 - $400,000
2. Potential annual revenue: $30,000 - $60,000

3. Townhouses (2-3 bedrooms):

• Average property price: $500,000 - $800,000
• Potential annual revenue: $60,000 - $90,000

To maximize your revenue, consider investing in a property that aligns with these popular types and bedroom counts. Additionally, incorporate the in-demand amenities mentioned above to make your listing more attractive to potential guests.

Over the past few years, Asheville has seen a steady increase in Airbnb bookings, with a 35% growth from 2023 to 2024. This trend is expected to continue as the city's tourism industry thrives, making it an opportune time to enter the Asheville short-term rental market.

By staying attuned to market trends, offering sought-after amenities, and setting competitive prices, you can maximize your revenue and succeed as an Airbnb host in Asheville.

Understanding Asheville Short-Term Rental Regulations

Asheville, North Carolina has implemented strict regulations on short-term rentals in recent years. In 2018, the Asheville City Council banned STRs of entire dwellings in most residential areas, with the exception of properties zoned as "resort". However, "homestays" – rentals of one or two bedrooms for fewer than 30 days in owner-occupied homes – are still permitted if they were operating as vacation rentals before the ban took effect.

To legally operate a homestay STR in Asheville, hosts must obtain a permit from the city, which requires proof of residency, a floor plan sketch, a fire safety inspection, and a $200 permit fee. Homestay permits must be renewed annually. Properties located outside of Asheville's city limits in Buncombe County are not subject to the same restrictions, but may still require permits and adherence to certain rules.

STRs in Asheville are subject to several taxes, including the North Carolina Sales Tax (4.75%), Buncombe County Occupancy Tax (6%), and Asheville Occupancy Tax (6%) for properties within city limits. Hosts are responsible for collecting and remitting these taxes to the appropriate authorities.

Despite the strict regulations, it is estimated that over 5,000 STRs continue to operate in Buncombe County. The city primarily relies on complaints from residents to identify and investigate illegally operating STRs, with limited enforcement.

Read our full STR regulations guide for more detailed information about Asheville’s short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as an Asheville Airbnb Host

Starting an Airbnb business in Asheville can be a rewarding venture, but it requires careful planning, attention to detail, and a commitment to providing exceptional guest experiences. By understanding the local market, complying with regulations, and implementing best practices, hosts can maximize their chances of success in this thriving short-term rental market. Here are some key strategies to help you excel as an Airbnb host in Asheville.

Popular Amenities and Design Themes in Asheville

To attract guests and stand out from the competition, consider incorporating these popular amenities and design themes into your Asheville Airbnb:

• Rustic-chic decor that showcases the area's natural beauty and artistic vibe
• Private outdoor spaces, such as decks or patios, with comfortable seating and mountain views
• Hot tubs or jacuzzis for a luxurious and relaxing experience
• Pet-friendly accommodations to cater to the growing number of travelers with furry companions
• Well-equipped kitchens with locally-sourced coffee and snacks to provide a taste of Asheville

How to Attract Asheville Customers

To effectively market your Airbnb and attract customers in Asheville, focus on:

• Highlighting your property's unique features and amenities in your listing description and photos
• Offering competitive rates that align with the local market and adjust based on seasonality and events
• Providing exceptional customer service and promptly responding to guest inquiries and feedback
• Leveraging social media and local tourism resources to promote your listing and engage with potential guests
• Partnering with local businesses, such as restaurants or tour operators, to offer exclusive discounts or packages to your guests

Potential Challenges and Guidelines for Airbnb Hosts in Asheville

While Asheville's short-term rental market offers significant opportunities, hosts should be aware of potential challenges and adhere to best practices to ensure success:

• Navigating strict local regulations and obtaining necessary permits and licenses
• "Make sure you fully understand and comply with Asheville's STR regulations to avoid fines or legal issues." - Advice from a host on BiggerPockets
• Managing noise levels and parking to maintain positive relationships with neighbors
• "Be proactive in communicating with your neighbors and establish clear house rules for guests to minimize disturbances." - Tip shared by a host on the Asheville Airbnb Host Forum on Facebook
• Ensuring consistent cleanliness and maintenance to meet guest expectations and maintain high ratings
• "Invest in professional cleaning services and conduct regular property inspections to keep your Airbnb in top condition." - Recommendation from a host on the /r/AirBnB subreddit
• Staying informed about market trends and adapting your strategy accordingly
• "Regularly monitor your competition and adjust your pricing and amenities to remain competitive in the evolving Asheville market." - Insight from a host on the Asheville Real Estate Investors Association forum

By implementing these strategies and staying attuned to the unique challenges and opportunities in Asheville, hosts can build successful and sustainable Airbnb businesses in this dynamic market.

Using BNBCalc to Find Profitable Properties in Asheville, North Carolina

Investing in a short-term rental property in Asheville can be a lucrative venture, but it's crucial to conduct thorough research and analysis to ensure profitability. BNBCalc is a powerful tool that can help aspiring business owners navigate the process of finding and evaluating potential properties in Asheville. By leveraging BNBCalc's features and following these key steps, investors can make informed decisions and maximize their chances of success in the Asheville short-term rental market.

1. Analyze Properties Using BNBCalc

BNBCalc allows users to input property details, such as address, purchase price, and estimated expenses, to generate comprehensive financial projections. To analyze a potential property, simply enter the required information, and BNBCalc will provide key metrics like estimated revenue, occupancy rates, and cash flow. This data-driven approach helps investors assess the viability of a property before making an investment.

2. Benchmark Comparable Rentals

One of BNBCalc's most valuable features is its ability to showcase nearby rentals within the area. By analyzing the performance of comparable properties, users can gain insights into the local market and adjust their strategies accordingly. This information can be used to optimize pricing, amenities, and marketing efforts to fetch top dollar for your Asheville short-term rental.

3. Determine the Right Price and Property Size

BNBCalc can help investors determine the optimal number of bedrooms, bathrooms, and purchase price to maximize revenue. By inputting various scenarios and comparing the projected returns, users can identify the sweet spot for their investment. This feature is particularly useful in Asheville, where property prices and rental demand can vary significantly depending on location and property type.

4. Make an Offer

Once you've identified a promising property and used BNBCalc to determine a good purchase price based on the expected returns, it's time to make an offer. BNBCalc has partnered with STR lenders to help investors get prequalified and secure financing. We recommend working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry.

5. Use Our Tax Calculator

BNBCalc's tax calculator is a valuable tool for estimating potential tax deductions, including those related to bonus depreciation. By inputting your projected income and expenses, the calculator can help you understand the tax implications of your Asheville short-term rental investment. This information can be used to optimize your tax strategy and maximize your overall returns.

6. Come Up With a Buy Box

A buy box is a set of criteria that investors use to evaluate potential properties and ensure they align with their investment goals. When creating a buy box for Asheville short-term rentals, consider the following qualities:

• Location: Focus on properties in popular neighborhoods like Downtown, Montford, and West Asheville, which offer high demand and strong rental rates.
• Property Type: Prioritize entire homes, apartments, and condos with 1-3 bedrooms, as these tend to be the most sought-after by Asheville visitors.
• Amenities: Look for properties with in-demand features like hot tubs, outdoor spaces, and unique decor that can help your rental stand out in the competitive market.
• Price Range: Determine a comfortable price range based on your financial goals and the projected returns generated by BNBCalc.

By using BNBCalc's features and following these steps, aspiring business owners can navigate the process of finding and investing in profitable short-term rental properties in Asheville. With the right tools, knowledge, and strategy, investors can build successful and sustainable Airbnb businesses in this thriving market.

Ready to start your Airbnb journey in Asheville? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Asheville Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.