Crunching the Numbers: What’s the Average Airbnb Income in 2023?

Crunching the Numbers: What’s the Average Airbnb Income in 2023?

As the sharing economy continues to redefine how we travel and experience new destinations, Airbnb stands at the forefront of this transformation. For homeowners and property investors, the allure of extra income from short-term rentals has become a tantalizing prospect. But with the ever-changing landscape of travel and the economic shifts influenced by global events, it’s crucial to have a clear understanding of what the average Airbnb income looks like in 2023. In this article, we delve into the numbers, trends, and factors shaping the average earnings potential for Airbnb hosts this year.

The Dynamic Landscape of Short-Term Rentals

The concept of staying in someone else’s home while travelling has evolved from a niche idea to a mainstream choice. Airbnb, the pioneer of the short-term rental platform, has paved the way for travellers to experience destinations like locals and for property owners to monetize their assets. However, the income potential is far from uniform and depends on a multitude of factors that we’ll explore below.

Location, Location, Location

When it comes to real estate, the adage “location, location, location” remains paramount. The same holds true for Airbnb income. Earnings can vary significantly based on where your property is situated. Urban centres and tourist hotspots often yield higher nightly rates due to demand, while properties in suburban or less frequented areas might have lower earning potential.

Property Type and Size

The type and size of your property play a pivotal role in determining how much you can earn on Airbnb. A spacious apartment that can accommodate families might command a higher nightly rate than a compact studio suitable for solo travellers. Moreover, unique and well-designed spaces, such as treehouses, vintage caravans, or chic lofts, often stand out in the marketplace, attracting more guests and justifying a premium rate.

Seasonality and Demand Fluctuations

The ebbs and flows of the travel industry have a direct impact on your potential earnings. Peak tourist seasons, holidays, and major events can drive demand and enable hosts to charge higher rates. Conversely, off-peak periods might necessitate competitive pricing to attract bookings. Being attuned to your destination’s travel patterns is crucial for maximising your income.

Market Competition and Differentiation

With millions of listings worldwide, standing out from the crowd requires strategic planning. Crafting an appealing listing with high-quality images, an engaging description, and personalised touches can set your property apart. Offering unique amenities, exceptional cleanliness, and prompt communication can translate into higher guest satisfaction, leading to positive reviews that enhance your property’s appeal.

Average Airbnb Income in 2023: The Figures

While it’s impossible to provide an exact figure that applies universally, let’s crunch some numbers to provide a general overview of the average Airbnb income in 2023. As of mid-2023, reports suggest that the global average nightly rate for an Airbnb property hovers around $130. This figure, however, varies greatly based on location. Major metropolitan areas and tourist hubs can command rates exceeding $200 per night, while more affordable destinations might have averages closer to $80.

Considering an average occupancy rate of around 60-70%, hosts can expect to earn a gross annual income of approximately $28,000 to $36,000 from a property charging $130 per night. Keep in mind that this is a simplified calculation and doesn’t account for expenses like cleaning fees, maintenance, utilities, and taxes.

Factors Impacting Income Trends

Several factors contribute to the trends observed in Airbnb income in 2023:

1. Travel Recovery:

The global travel industry is recovering from the impact of the pandemic. As travel restrictions ease, pent-up demand is driving a surge in bookings and, subsequently, higher nightly rates.

2. Rise of Remote Work:

The shift towards remote work has enabled a new breed of “digital nomads” who seek extended stays in Airbnb properties. This trend has boosted demand for longer rental periods, positively influencing hosts’ income potential.

3. Regulatory Changes:

Some cities and regions have implemented stricter regulations on short-term rentals, affecting the supply of available listings. This can lead to increased competition among hosts who comply with regulations, potentially driving up prices.

4. Guest Expectations:

Travellers’ expectations have evolved, with an emphasis on cleanliness, safety, and seamless experiences. Hosts who meet these expectations can command premium rates.


Crunching the numbers on the average Airbnb income in 2023 reveals a landscape of potential for both new and experienced hosts. While figures vary based on factors such as location, property type, and market demand, the short-term rental industry continues to offer a pathway to supplemental income and even full-scale entrepreneurship. As you embark on your journey as an Airbnb host, keep in mind that success requires not only a grasp of the financials but also a commitment to guest satisfaction, continuous improvement, and adaptation to the ever-evolving realm of travel and hospitality. By staying informed, strategically pricing your property, and providing exceptional experiences, you can position yourself to make the most of this exciting opportunity in the sharing economy.

Find out how we generate recurring income from real estate without owning or renting any property whatsoever.