Top 15 Best Airbnb Markets in California for 2025 – From Los Angeles to Palm Springs



By: Sally Alfaras | Jul. 18, 2025

• Occupancy Rate: 64%
  Avg Daily Rate: $225
  Median House Price: $855,000

Tourism & Business in San Diego

San Diego’s blend of beaches, world-class attractions, and year-round sunshine makes it a top vacation rental destination. Neighborhoods like Pacific Beach attract steady streams of short-term rental guests, while business travel driven by biotech and defense also supports consistent Airbnb occupancy.

From the Gaslamp District to La Jolla, Airbnb property performance remains reliable due to balanced demand. With competitive occupancy rates and strong average revenue, San Diego is a stable Airbnb market for long-term investment.

Summary

As one of the top Airbnb markets in California, San Diego offers strong occupancy, healthy rental income, and resilient revenue potential. It's ideal for short-term rental investors seeking steady returns in a mature market.

2. Los Angeles – Top Airbnb Market for Urban Revenue

• Occupancy Rate: 55%
  Avg Daily Rate: $275
  Median House Price: $970,000

Tourism & Business in Los Angeles

Los Angeles blends tourism and business like few cities in the world. Travelers come for Hollywood, concerts, and beaches, while corporate guests fill Airbnbs around convention centers and studios. The city’s short-term rental landscape remains competitive, but the large market size means opportunity.

From mid-city to the hills, diverse neighborhoods allow for strategic Airbnb investments. Strong ADR and year-round demand ensure solid rental income and long-term profitability when managed effectively.

Summary

With high market size and unmatched exposure, Los Angeles remains a cornerstone Airbnb market in California. While home prices are steep, top-tier average revenue supports solid returns on short-term rentals.

3. Palm Springs –  California's Luxury Airbnb Hotspot





• Occupancy Rate: 53%
  Avg Daily Rate: $496
  Median House Price: $650,000

Tourism & Business in Palm Springs

Palm Springs is a premium destination for design lovers, retirees, and luxury vacationers. Hosts enjoy high nightly rates during peak season, especially during festivals and events. The city's boutique charm makes it a favorite for Airbnb investment.

With proper management, hosts can command significant revenue due to above-average ADR and a receptive guest base. This market continues to perform well thanks to consistent travel trends and strong brand identity.

Summary

Palm Springs stands out as a top California vacation rental market. High ADR, solid occupancy, and a mid-tier home price make it a winning formula for Airbnb investors seeking long-term rental income.

4. South Lake Tahoe – High Occupancy Rates in a Scenic Market



• Occupancy Rate: 53%
  Avg Daily Rate: $453
  Median House Price: $757,000

Tourism & Business in South Lake Tahoe

South Lake Tahoe benefits from its year-round tourism—skiing in winter and lake adventures in summer. Its Airbnb market thrives in both peak seasons. The region’s scenic beauty and recreation ensure a reliable short-term rental base.

Smart Airbnb property owners optimize listings for both snow and sun, resulting in consistently strong occupancy rates. Although seasonal, revenue levels remain impressive across the board.

Summary

Lake Tahoe’s vacation rental appeal drives reliable average revenue. Hosts who adapt listings for each season can unlock exceptional returns in this short-term rental market.

5. Joshua Tree – A Booming Airbnb Market in the Desert





• Occupancy Rate: 52%
  Avg Daily Rate: $315
  Median House Price: $620,000

Tourism & Business in Joshua Tree

Joshua Tree attracts outdoor enthusiasts, creatives, and spiritual travelers. Known for its unique style and national park access, the area supports distinctive Airbnb rentals that stand out in California’s market.

Minimalist desert homes and off-grid experiences fetch solid occupancy and ADR. Although smaller in market size, high guest satisfaction and aesthetic appeal drive strong rental income.

Summary

Joshua Tree represents one of California’s best Airbnb markets for creative short-term rental investment. Its blend of affordability and strong revenue make it a compelling choice for new hosts.

6. Anaheim – Family-Friendly Revenue Engine

• Occupancy Rate: 70%
  Avg Daily Rate: $299
  Median House Price: $890,000

Tourism & Business in Anaheim

Anaheim is synonymous with Disneyland, drawing millions of visitors annually. This consistent demand drives high occupancy rates and stable ADRs. Families, school trips, and international guests all contribute to strong short-term rental performance.

Though regulations are strict, compliance and strategic management yield excellent results. Vacation rentals near theme parks are consistently booked year-round.

Summary

With one of the highest occupancy rates in California, Anaheim is a top Airbnb market. Hosts with family-ready listings can expect steady revenue and long-term rental income potential.

7. Big Bear – Seasonal Rental Powerhouse



• Occupancy Rate: 60%
  Avg Daily Rate: $375
  Median House Price: $645,000

Tourism & Business in Big Bear

Big Bear thrives as a seasonal destination for snow sports and lakeside relaxation. Airbnb properties perform best when tailored to family and group getaways. Occupancy spikes during holidays and school breaks.

Proper Airbnb management and a strong guest experience lead to high reviews and rebookings. Average revenue remains strong even with market fluctuations.

Summary

Big Bear offers a prime opportunity for investors looking to enter the vacation rental space. With solid rental income and manageable home prices, it’s a favorite among short-term rental hosts.

8. Monterey – Stable Airbnb Market with Coastal Appeal





• Occupancy Rate: 59%
  Avg Daily Rate: $285
  Median House Price: $925,000

Tourism & Business in Monterey

Monterey’s ocean views, golf courses, and aquarium attract affluent travelers. As a higher-end market, it favors well-furnished Airbnbs and longer weekend stays. High ADR helps hosts meet ROI targets despite elevated home prices.

Its real estate is more exclusive, but occupancy remains reliable due to business travel, tourism, and events. This balance supports consistent rental income.

Summary

Monterey is a stable, upscale Airbnb market. While entry costs are high, the reward is dependable occupancy and strong average revenue in a refined short-term rental location.

9. Napa Valley – Premium Wine Country Revenue



• Occupancy Rate: 62%
  Avg Daily Rate: $405
  Median House Price: $980,000

Tourism & Business in Napa Valley

Napa Valley is synonymous with wine tourism. Airbnb properties in the area cater to couples, foodies, and international travelers. Luxury homes and guest houses generate high rental income.

This top-tier short-term rental market benefits from brand appeal and a steady stream of tourists year-round. Investment here is about quality and strategic Airbnb property presentation.

Summary

Napa Valley is a high-end California Airbnb market with elevated home prices but unmatched revenue potential. Hosts who offer unique stays can thrive in this wine country gem.

10. Santa Barbara – Upscale Airbnb Market with Consistent Demand



• Occupancy Rate: 58%
  Avg Daily Rate: $385
  Median House Price: $1,050,000

Tourism & Business in Santa Barbara

Santa Barbara offers pristine beaches, wine tasting, and art scenes. Its short-term rental market is premium-priced but delivers reliable occupancy. The city's relaxed vibe draws long-weekend guests and vacationers.

Luxury Airbnb rentals are the norm, and property management plays a key role in maximizing bookings. High nightly rates support excellent average revenue.

Summary

Santa Barbara remains one of the best Airbnb markets for luxury-focused hosts. High entry costs are offset by substantial rental income and a refined guest demographic.

11. Catalina Island – Unique Island Investment



• Occupancy Rate: 57%
  Avg Daily Rate: $340
  Median House Price: $805,000

Tourism & Business in Catalina Island

Catalina Island's exclusivity makes it a niche Airbnb market. Limited inventory and steady tourist interest create ideal conditions for high ADR. Ferry access keeps occupancy rates stable.

With limited competition and strong demand, Catalina presents an opportunity for hosts to deliver high-end experiences and capitalize on seasonal travel.

Summary

Catalina Island offers strong short-term rental income and a unique Airbnb investment landscape. Its island charm and limited supply make it a high-performing vacation rental location.

12. Bakersfield – Affordable Entry Market

• Occupancy Rate: 54%
  Avg Daily Rate: $160
  Median House Price: $385,000

Tourism & Business in Bakersfield

While not a traditional vacation destination, Bakersfield attracts business travelers and families visiting relatives. The city’s affordability allows for profitable Airbnb setups even at lower ADR.

Strong rental income relative to property cost makes Bakersfield a solid entry point for Airbnb investment. Growth in logistics and oil keeps occupancy consistent.

Summary

Bakersfield is a value Airbnb market. Low home prices and steady occupancy rates allow for positive cash flow in this emerging California short-term rental market.

13. Redding – Underrated Airbnb Market for Strong Revenue Potential

• Occupancy Rate: 56%
  Avg Daily Rate: $180
  Median House Price: $395,000
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Tourism & Business in Redding

Redding’s proximity to national parks and Northern California's wilderness supports a steady Airbnb market. Its smaller size keeps competition manageable, and short-term rental demand grows with regional tourism.

Outdoor recreation drives weekend stays, and local events increase booking windows. Hosts benefit from low property costs and solid occupancy.

Summary

Redding is an underrated short-term rental location offering stable revenue and affordable Airbnb investment options. Great for hosts seeking dependable rental income without the high barrier to entry.

14. Oxnard – Beachfront Rental Boost

• Occupancy Rate: 61%
  Avg Daily Rate: $275
  Median House Price: $745,000

Tourism & Business in Oxnard

Oxnard’s beachfront access makes it a quieter alternative to LA and Santa Barbara. It’s part of a growing Airbnb market where hosts benefit from ocean views and less saturated competition.

Weekend tourists and family travelers fuel bookings. The city’s blend of affordability and beach appeal results in strong ADR and occupancy rates.

Summary



Oxnard is a strong Airbnb rental location for mid-level investors. With favorable occupancy and rental income, it’s becoming one of California’s emerging vacation rental markets.

15. Temecula – Wine Country Airbnb Investment on the Rise

• Occupancy Rate: 60%
  Avg Daily Rate: $290
  Median House Price: $685,000

Tourism & Business in Temecula

Temecula’s wine scene and wedding venues create strong Airbnb demand. Short-term rentals here often cater to groups and families attending local events or touring vineyards.

As a growing wine region, Temecula sees rising visitor numbers and Airbnb market expansion. Hosts who position their listings well see solid revenue.

Summary

Temecula is a rising star in the California Airbnb market. Strong occupancy rates, scenic charm, and expanding tourism make it an appealing option for Airbnb property owners

Final Thoughts



California continues to be a powerhouse for short-term rental investments, offering a wide range of Airbnb markets—from luxury hubs like Palm Springs and Santa Barbara to emerging gems like Temecula and Redding.

Whether you’re seeking strong year-round occupancy, high average daily rates, or a balance between affordability and return, there’s a market for every type of investor. Success in this space requires more than just picking the right city—it demands strategic management, standout property design, and a guest experience that exceeds expectations.

Ready to Maximize Your Airbnb Investment?

At Home Team Luxury Rentals, we specialize in turning great properties into exceptional, high-performing vacation rentals. Whether you're entering the Airbnb market or looking to optimize your current listing, our expert team handles everything—from luxury staging and marketing to full-service guest management.

Let’s elevate your rental income while giving guests the experience of a lifetime.

Contact us today to schedule a free consultation and see how we can help your property stand out in California’s most competitive markets.