Airbnb Long Beach, California: Market Data, Laws & Investor Guide

Looking to start a profitable short-term rental business in 2024? Long Beach, California should be at the top of your list. This vibrant coastal city, located just south of Los Angeles, has seen explosive growth in the vacation rental market in recent years.

A few key factors make Long Beach especially appealing for Airbnb hosts:

Long Beach welcomed a record 7.9 million visitors in 2023, a 15% increase from the previous year. Major attractions like the Queen Mary, Aquarium of the Pacific, and miles of sandy beaches continue to draw tourists from around the world. This provides a large, steady stream of potential guests for short-term rentals.

While some California cities have cracked down on Airbnb, Long Beach has embraced it. The city allows short-term rentals in most residential areas as long as hosts obtain a permit and follow a few basic regulations. This makes it easy for new hosts to get started.

In July 2024, the average Airbnb occupancy rate in Long Beach was an impressive 60%. Hosts earned an average daily rate of $250. With demand projected to keep climbing, these figures point to the huge profit potential for savvy Airbnb entrepreneurs.

The number of active short-term rental listings in Long Beach has surged 8% in the past year alone to over 2,200 properties. This signals that more and more investors are betting big on the Airbnb market here. It's an exciting time to get in on the action.

From the numbers, it's clear - Long Beach is shaping up to be one of the hottest Airbnb markets in the country for 2024 and beyond. For aspiring hosts, this laid-back SoCal beach town offers an enticing mix of strong demand, high revenue potential, and a supportive legal landscape.

Long Beach Short-Term Rental Market Analysis

Long Beach has seen impressive growth in its short-term rental market over the past few years. Let's dive into the key metrics and trends:

Occupancy Rate, Nightly Rate, and Seasonality

• As of July 2024, the average Airbnb occupancy rate in Long Beach was 60%
• Hosts earned an average daily rate of $250
• Occupancy rates tend to peak in the summer months (June-August) and stay strong through September

Market Growth and Revenue Potential

1. The number of active short-term rental listings in Long Beach has surged 8% in the past year to over 2,200 properties
2. Travel spending in Long Beach grew to $150.4 million in 2023, a 5.6% increase from 2022

Tourism Industry Growth

1. Long Beach welcomed a record 7.9 million visitors in 2023, a 15% increase from 2022
2. Travel-generated state and local tax revenue in Long Beach increased to $12.7 million in 2023, a 3.7% increase from the prior year

Key Events Boosting Tourism

1. Long Beach Food Scene Week (August 12-18, 2024)
2. Taste of Downtown - Waterfront (August 14-15, 2024)
3. Movies and Moonlight at 2ND & PCH (August 16, 2024)
4. Cornhole Tournament (August 12-31, 2024)
5. Free Summer Lunch Cruises (August 12-28, 2024)
6. Booking Durations and Mid-Term Rental Market

According to Airbnb host forums, the most common booking durations in Long Beach are:

1. Weekend stays (2-3 nights)
2. Week-long vacations (7 nights)
3. Month-long stays for traveling professionals or students

51.2% of Airbnb listings in Long Beach have a minimum stay of 30+ nights, indicating a strong mid-term rental market. Many hosts report steady bookings from traveling nurses, interns, and other professionals seeking furnished monthly rentals.

In summary, the Long Beach short-term rental market is thriving, with strong occupancy rates, high revenue potential, and a growing tourism industry. The city's vibrant event calendar and popularity among both short-term and mid-term renters make it an attractive destination for Airbnb hosts.

Best Neighborhoods in Long Beach for an Airbnb Business

When starting an Airbnb business in Long Beach, location is key. Hosts should look for neighborhoods that balance proximity to popular attractions, strong rental demand, and reasonable housing costs. Here are the top 5 neighborhoods in Long Beach to consider for your Airbnb:

1. Belmont Shore

Belmont Shore is a prime location for Airbnb due to its walkable streets lined with boutiques, restaurants, and the picturesque Belmont Shore Beach.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $275
3. Estimated Annual Revenue: $72,270
4. High Season: June to August

Housing Costs:

The median home price in Belmont Shore is $1,286,000. Two-bedroom properties offer the best return on investment for Airbnb hosts.

2. Downtown Long Beach

Downtown Long Beach puts guests in the heart of the action, steps from the convention center, waterfront attractions, and vibrant Pine Avenue.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $190
3. Estimated Annual Revenue: $47,090
4. High Season: March to July, September to October

Housing Costs:

The median home price in Downtown Long Beach is $799,000. One-bedroom condos are the most profitable for Airbnb.

3. Bluff Heights

Bluff Heights offers a quieter residential setting while still being close to the beach and popular 4th Street Retro Row.

1. Average Occupancy Rate: 82%
2. Average Daily Rate: $165
3. Estimated Annual Revenue: $49,400
4. High Season: May to September

Housing Costs:

The median home price in Bluff Heights is $1,458,963. Three-bedroom houses perform best on Airbnb.

4. Belmont Heights

Belmont Heights offers a family-friendly atmosphere and easy access to parks, golf courses, and the beach.

• Average Occupancy Rate: 76%

1. Average Daily Rate: $225
2. Estimated Annual Revenue: $62,415
3. High Season: June to August

Housing Costs:

The median home price in Belmont Heights is $1,120,000. Two to three-bedroom houses make ideal Airbnb rentals.

5. East Village Arts District

The trendy East Village Arts District appeals to travelers seeking a creative, bohemian vibe with art galleries, music venues, and unique eateries.

• Average Occupancy Rate: 65%
• Average Daily Rate: $140
• Estimated Annual Revenue: $33,215
• High Season: June to August

Housing Costs:

The median home price in the East Village is $689,000. Artsy lofts and one-bedroom condos suit the Airbnb market well.

When choosing a neighborhood for your Long Beach Airbnb, consider your target guest demographic and budget. Across all areas, Airbnb-friendly amenities like fast WiFi, well-equipped kitchens, and stylish decor can help boost occupancy and nightly rates. With the right location and setup, hosts can build a thriving Airbnb business in this popular Southern California destination.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Long Beach

To maximize your Airbnb revenue in Long Beach, it's crucial to set competitive prices and offer the amenities that guests desire most. Here's how to optimize your listing for success:

Setting Competitive Prices

When determining your nightly rate, consider these key factors:

Seasonality: Long Beach sees peak demand in summer, especially July. Raise prices during high season and lower them in slower months.

Occupancy rates: Aim for a 70-80% occupancy rate. If you're consistently fully booked, you may be priced too low. If occupancy is low, consider lowering prices.

Similar listings: Research Airbnb listings like yours in the same neighborhood and price competitively based on your offering.

Dynamic pricing tools: Utilize Airbnb's Smart Pricing feature or third-party dynamic pricing software to automatically adjust rates based on demand.

In-Demand Amenities

The top-performing Long Beach Airbnb listings tend to offer these sought-after amenities:

• Beach gear: Surfboards, beach towels, umbrellas, coolers, and sand toys
• Bicycles: Long Beach is very bike-friendly, so 2+ bicycles are a big plus
• Outdoor space: A patio, balcony, deck, or yard, ideally with seating/dining areas
• Hot tub: Especially desirable for luxury listings and cooler months
• Air conditioning: A must for the hot summer months
• Fully-equipped kitchen: Guests love to cook meals and entertain
• Washer/dryer: Makes longer stays much more convenient
• Self check-in: Lockboxes or smart locks for easy, flexible check-in
• Parking: Free, on-site parking is a huge perk in Long Beach

Popular Property Types & Potential Revenue

Based on recent trends, these are the most popular and profitable types of Airbnb properties in Long Beach:

Condos

• Most popular: 1-bedroom ($59,200 avg annual revenue) and 2-bedroom ($77,400)
• Median price: $520,000 (1-bed), $699,000 (2-bed)

Apartments

• Most popular: Studio ($42,000 avg annual revenue) and 1-bedroom ($51,800)
• Median rent: $1,600/month (studio), $2,100/month (1-bed)

Townhouses

• Most popular: 2-bedroom ($81,400 avg annual revenue) and 3-bedroom ($105,000)
• Median price: $799,000 (2-bed), $1.1M (3-bed)

Single-Family Homes

• Most popular: 3-bedroom ($122,000 avg annual revenue) and 4-bedroom ($158,000)
• Median price: $1.2M (3-bed), $1.6M (4-bed)

In general, larger properties with more bedrooms earn higher annual revenue but also come with higher purchase/rental costs. Condos and townhouses tend to be the most profitable as they balance revenue potential with lower overall costs.

By offering the amenities guests want most and pricing your property competitively based on its type and location, you can maximize your Airbnb income in Long Beach's thriving short-term rental market. Keep an eye on trends and be ready to adapt your strategy as needed to stay ahead of the curve.

Understanding Long Beach Short-Term Rental Regulations

Long Beach, California has specific regulations for short-term rentals that hosts must follow. The city requires all short-term rental operators to obtain a permit and business license. Hosts must apply for a Short-Term Rental (STR) permit, which costs $250 and is valid for one year. The permit number must be included on all listings.

Long Beach has zoning restrictions that limit STRs to certain areas. Non-primary residences being rented short-term are only allowed in specific zones, while primary residence STRs are permitted in most residential zones. Hosts can only operate one STR unit at a time, and it must be their primary residence for at least 275 days per year.

The city also has occupancy limits based on the number of bedrooms. STRs must provide one off-street parking space per bedroom rented. Quiet hours are enforced from 10 PM to 7 AM, and no parties, events, or group gatherings are allowed.

Hosts are required to maintain liability insurance of at least $500,000 and pay a 12% transient occupancy tax (TOT) on all bookings. They must also provide a local contact person who can respond to issues within one hour.

Violations of Long Beach's STR ordinance can result in fines of $1000-$2500 per day. The city actively monitors listings for compliance and encourages neighbors to report illegal rentals.

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

Keys to Success as a Long Beach Airbnb Host

Running a successful Airbnb in Long Beach takes more than just a well-located property. It requires a strategic approach to amenities, decor, marketing, and guest experience. In this section, we'll share insider tips and best practices from experienced Long Beach hosts to help you stand out in this competitive market.

Popular Amenities and Design Themes

To attract guests and command higher nightly rates, incorporate these in-demand amenities and design elements:

• Beach-themed decor with a modern, upscale twist
• Outdoor shower for rinsing off after the beach
• Fire pit or outdoor heaters for chilly evenings
• Gourmet kitchen with high-end appliances and cookware
• Plush bedding and towels for a luxury hotel feel
• Smart home features like keyless entry, smart thermostat, and voice assistants
• Indoor-outdoor living spaces that take advantage of the mild climate

How to Attract Long Beach Customers

To market your Airbnb effectively and attract your ideal guests:

• Highlight proximity to specific beaches, attractions, and neighborhoods in your listing title and description
• Use professional photography to showcase your property's best features
• Offer special packages tailored to popular guest types (e.g., romantic getaway, family beach vacation, remote work retreat)
• Partner with local businesses to offer exclusive discounts or experiences to your guests
• Maintain a strong social media presence on Instagram and Facebook, showcasing your property and the Long Beach lifestyle
• Encourage satisfied guests to leave reviews to build trust and credibility

Potential Challenges and Success Strategies

While Long Beach is a great place to host on Airbnb, it does come with some unique challenges. Here's how successful hosts navigate them:

• Challenge: Strict regulations and permitting requirements
• Success Strategy: "Thoroughly research and comply with all city regulations from the start. It's not worth risking fines or shutdown by cutting corners." - John D., Superhost
• Challenge: High competition from other listings
• Success Strategy: "Find a unique angle for your property, whether it's a specific design style, amenity, or target guest demographic. Don't try to appeal to everyone." - Sarah M., Superhost
• Challenge: Seasonality and fluctuating demand
• Success Strategy: "Adjust your pricing frequently based on seasonality and local events. Use dynamic pricing tools to stay competitive." - Michael R., Host
• Challenge: Potential for property damage or disruptive guests
• Success Strategy: "Screen guests carefully, set clear house rules, and invest in security features like noise monitoring and exterior cameras. Don't be afraid to say no to guests who raise red flags." - Lisa K., Superhost

By implementing these proven strategies and staying attuned to the unique dynamics of the Long Beach market, you can build a thriving Airbnb business that delights guests and generates steady income. Remember, success as a host requires ongoing effort and adaptation, but the rewards can be well worth it.

Using BNBCalc to Find Profitable Properties in Long Beach, California

Starting a short-term rental business in Long Beach can be a lucrative venture, but it's crucial to find the right property to maximize your returns. BNBCalc is a powerful tool that can help you analyze potential investments, benchmark against competitors, and make data-driven decisions. In this section, we'll walk you through how to use BNBCalc to find profitable properties in Long Beach.

Analyze Properties Using BNBCalc

To get started, create a free account on BNBCalc and enter the address of the property you're considering. The tool will automatically pull in key details like square footage, bedroom/bathroom count, and estimated market value. You can then input your expected nightly rate, occupancy rate, and operating expenses to see projected revenue and cash flow.

Benchmark Comparable Rentals

One of BNBCalc's most useful features is the ability to see nearby rental comps. The tool shows you the average daily rate, occupancy rate, and revenue of similar properties in the area. Use this data to ensure your projections are realistic and to identify opportunities to outperform the competition through pricing, amenities, or marketing.

Determine The Right Price and Property Size

BNBCalc can help you zero in on the ideal property size and price point for your investment goals. Experiment with different bedroom/bathroom counts and purchase prices to see how they impact your projected returns. In general, look for properties that can generate at least a 10% cap rate and 15% cash-on-cash return to ensure a solid investment.

Make an Offer

Once you've found a property that meets your criteria, it's time to make an offer. Use BNBCalc's projections to determine a purchase price that aligns with your desired returns. To streamline financing, consider working with BNBCalc's partnered STR lender, Brian Bockholdt at Alliant Credit Union, who offers competitive rates for short-term rental investments.

Use Our Tax Calculator

Don't forget to factor in the tax benefits of owning a short-term rental. BNBCalc's built-in tax calculator can help you estimate potential deductions from bonus depreciation, mortgage interest, and operating expenses. These deductions can significantly boost your cash flow and overall returns.

Come Up With a Buy Box

To scale your Airbnb business, it's helpful to create a "buy box" that outlines your ideal investment criteria. Based on your BNBCalc analysis and research, your buy box might include:

1. Property type (e.g., condo, townhouse, single-family home)
2. Neighborhood
3. Bedroom/bathroom count
4. Price range
5. Cap rate and cash-on-cash return targets
6. Desired amenities (e.g., outdoor space, parking, hot tub)

By sticking to your buy box, you can quickly identify promising opportunities and grow your portfolio strategically.

With BNBCalc's data-driven insights and powerful analysis tools, you can confidently navigate the Long Beach short-term rental market and find properties that align with your investment goals. Whether you're just starting out or looking to expand your portfolio, BNBCalc is an essential resource for any Airbnb entrepreneur.

Ready to start your Airbnb journey in Long Beach? 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 Long Beach 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.