Airbnb boom in Sacramento means extra cash for residents
SACRAMENTO — The short-term rental industry saw a boost after the pandemic; the city's Airbnb listings are growing at a rate that far exceeds Lake Tahoe, San Francisco, and Napa Valley.
Events such as Aftershock, GoldenSky, and the Ironman competition brought thousands of tourists to Sacramento who needed a place to stay.
Downtown resident Austin Cooper decided to use his extra space to earn a supplemental income; one month after beginning his journey as an Airbnb host, Cooper already sees the return on investment.
"I can very thankfully say that it has paid our mortgage this month," Cooper said.
AirDNA is an analytics firm that tracks data on short-term rentals. Jamie Lane, the Vice President of Research, says occupancy levels in Sacramento reached all-time highs in 2021.
Cooper applied for a short-term vacation rental permit with the city — a process that took about two weeks. He recognized that the prime downtown location would be appealing to guests; the unit is described on the app as a "Downtown Oasis."
"We made ours very Sacramento specific, so we have artwork all around from local artists and other items to sing the praises of Sacramento," Cooper said. "I love living downtown, so we're sharing this with our guests."
Cooper says his co-workers now reach out for advice on how to become hosts as well.
As of September 2022, AirDNA data shows that there are nearly 2,500 available listings in the city.
CBS13 spoke with Mike Testa, the CEO of Visit Sacramento, to find out how this may be impacting area hotels.
"Downtown Austin has about 18,000 rooms, downtown Indianapolis has about 12,000 rooms, and Sacramento has closer to 3,000 rooms … so there's a significant shortage," Testa said. "Which means we need Airbnb operators to continue doing business in Sacramento."
Cooper says operating and maintaining an Airbnb is work. He manages phone calls or questions, helps check guests in when they arrive, and has to make sure the unit is properly cleaned between each stay. Though this can be an added stress to his existing full-time job, Cooper says it is still "100% worth it."