Why Maui Is Rated the Best Vacation Rental Investment Market in 2022

There is no question that the Covid 19 Pandemic has changed how people want to work, live, and travel. According to Forbes, 74% of professionals expect remote work to become the standard. No longer are professionals working in cubicles in high-rise buildings in cramped cities - they are working from anywhere in the world. And what better place than Maui?

The dramatic rise of digital nomads has led to unprecedented growth in the short-term rental industry. AirDNA, a short-term rental analytic platform, highlights that "the revenue potential of small city/rural areas in the U.S. has risen 55% since the start of the pandemic followed closely by mountain/lake destinations and mid-sized cities."

AirDNA's property-level performance data for Airbnb and Vrbo analyzed Maui, Hawaii as the highest-performing, fastest-growing short-term rental market that provides returns for investors.

Based on the three pillars - Rental Demand, Rental Revenue, and Investability, here is how Maui outperforms all the competition, making it the best short-term rental market to invest in 2022.

1. Rental Demand

The average occupancy rate among all vacation rentals on Maui is 73%. This is the highest average occupancy rate using booking data scraped from all short-term rentals in the United States on Airbnb and Vrbo. This is no surprise since Maui is a sought-after vacation destination year after year, with pristine beaches, breathtaking views, and world-renowned excursions.

2. Revenue Growth

Maui experienced strong revenue growth from 2020-to 2022. The average daily rate in 2022 in Maui is $375 per night and the average full-time annual rental revenue is $102K.

3. Investibility

AirDNA rated the investability score at a record high score of 90%. This metric compares the expected income of a property relative to the cost of buying it. This is calculated by using the average revenue potential of homes in the area, subtracting the cost for operating the property, and then dividing that by the typical home value in the same area for similar-type homes. Lahaina and Kihei are the hot markets according to the AirDNA investor score, but almost all areas on the island score high on the list for 2022.

Here at Vacation-Maui, we specialize in investment sales and property management for short-term rentals on the island of Maui. We are experts in this space, managing 60+ short-rental units across the island with an average of 80% occupancy rates and over 1,000 5-star reviews.