Alberta is the fourth Canadian province by size, and the short-term rental industry is booming there. Airbnbs are now available in every major city in Alberta, and the demand is increasing steadily. However, before launching a vacation rental in the province, it is important to perform the research and choose the location properly.
Best Cities for Launching an Airbnb in Alberta
There are multiple cities in Alberta that have great potential for aspiring entrepreneurs. Moreover, they feature different markets, enabling the investors to choose a location according to their strategies. Some cities have smaller markets with huge potential, while others offer significant profits with intense competition.
Calgary
Calgary is the largest city in the province, and it expectedly has the largest short-term vacation rental market. There are more than 5,600 Airbnbs there, 80% of which are entire home listings. An average property in the city has 2.1 bedrooms and can accommodate up to 4.8 guests at a time.
The Average Daily Rate in Calgary is $113, while the Occupancy Rates stay at the level of 73% throughout the year. The seasonal effect of demand is present in this city but is not as strong as with some other destinations in the province because people come to visit Calgary all year round. The average Revenue an Airbnb in this city generates every month is $1,574.
The competition is extremely intense here, so entrepreneurs should be ready to deliver high-quality service from day one. A good option to do so is to use professional management services of companies like
https://masterhost.ca/airbnb-management-calgary/, as experienced managers, will ensure a much safer start for the business.
Edmonton
The second city on the list is Edmonton, the capital of the province. It has the second-largest rental market in Calgary, as there are currently more than 2,600 active listings in the city. The market has already recovered from the effect of the pandemic and is facing a stable quarterly growth of 7%. An average Airbnb in Edmonton has 2.2 bedrooms and is capable of hosting up to 5.1 guests.
The Average Daily Rate in Edmonton is $93, which is rather low because of the intense competition among local Airbnbs. The Occupancy Rates average 65% throughout the year, where the highest demand is in summer. The average monthly Revenue of a vacation rental in Edmonton is $1,170, which is still more than in most other cities of the province.
Even though large cities offer a much more stable environment, the competition forces host to deliver the best services possible. It is very relevant in Edmonton, and using the services of professional management companies like
https://masterhost.ca/airbnb-management-edmonton/ might be a great solution to have a smooth launch.
Wetaskiwin
The third city on the list is an option that is very contrasting to previously covered destinations. The City of Wetaskiwin has an exceptionally small rental market, as there are only seven properties operating there at the time of writing. Only three of them are entire homes, and the properties are scattered around the city’s area. The market has been fairly stagnant for the last couple of years, but it seems to have started growing in 2023.
The situation with the rates is almost exactly opposite to Edmonton and Calgary, where the hosts have to lower the prices because of the competition. In Wetaskiwin, the visitors do not have that many options to choose from, so the hosts are able to keep the Average Daily Rates at the level of $125, while still maintaining Occupancy Rates of 53%. The average Revenue an Airbnb in Wetaskiwin generates every month is $1,058.
Banff
Banff is a small city located in the mountains west to Calgary. The location is fairly popular among tourists, which enabled the city to grow a comparably large short-term vacation rental market. The place currently has more than 160 active Airbnbs, 69% of which are entire home listings. An average property in Banff has 1.7 bedrooms and can accommodate up to 4.8 visitors at a time.
Banff is a fairly luxurious place, which is why the Average Daily Rates here stay at the level of $327. Even with such prices, the rentals here manage to have an annual average Occupancy Rate of 67%. Local properties generate an almost unbelievable average monthly Revenue of $5,500, putting it above most other cities in Alberta.
The city is rather small, so the competition is fairly intense even with such a small number of Airbnbs operating there. Nevertheless, the market is facing a quarterly growth of 15% and freshly launched rentals seem to be able to sustain themselves.
Jasper
Jasper is the last city on the list, and its vacation rental market is partially similar to the one of Banff. It is also a small city in the mountains that gets a fairly good number of tourists considering its size. At the time of writing, there are 97 active Airbnbs in Jasper, 70% of which are entire home listings. The properties here tend to be small, as an average rental in Jasper has only 1.2 bedrooms and can accommodate up to 3 guests at a time.
The Average Daily Rate in Jasper is $159, while the Occupancy Rates average 89%. It is a rather rare situation, where the demand outpaces the supply, meaning there is clearly more room for new Airbnbs in the city. The Revenue generated by an average property in Jasper every month is $3,330.
Even though Jasper is not as luxurious and demanded as Banff, it has the potential to become a similar place. Not only does its market have room for new Airbnbs that could prosper here right now, but it also has all the parameters to perform well in the long run. Its vacation rental market is facing a quarterly growth of 34%, although it is only starting to catch up with the pre-pandemic levels.
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