How Property Types Can Impact Performance in the Short-Term Rental Market?

When thinking of buying an Airbnb property or investing in short-term rentals, it is crucial that you understand various factors affecting property value. Understanding if a two-bedroom works better in New York or Madrid can significantly impact your occupancy rate, revenue potential, and overall return on investment.

In this article, we’ll analyze how property types impact performance and provide a process for you to make the same analysis independently for other regions. 

Property Type Data Analysis Methodology

To arrive at the data provided in this article, we utilized the ready-to-view Market Dashboards for each region we wanted to analyze for the past 12 months.

Ready-to-view Market Dashboards are pre-built, daily-refreshing dashboards designed for short-term rental investors to analyze popular markets around the world and analyze rental potential.

Ready-to-View Market Dashboards help you get a:

1. Quick overview of the market inventory (active listings in the market), average revenue, RevPAR, and occupancy rate.
2. Comprehensive report of the market, pricing trend, occupancy data, and more insights to make data-driven decisions.
3. In-depth analysis of your direct competitors with custom Comp Sets with over 40 filters.

We examined key vacation rental performance metrics: Occupancy Rates, Average Daily Rate, Booking Window, Average Length of Stay, and RevPAR.

We also analyzed the amenities that guests were booking the most and the booking patterns of each market.

Performance Insights Based on Property Types In New York City 

1. Studio Dominance in NYC

The data presents a clear pattern: the studio consistently outperforms other New York City market property configurations.

Studios have achieved higher occupancy rates over the past 12 months. This shows that larger spaces do not consistently deliver better returns and suggests that efficiency and affordability often trump additional square footage in dense urban environments.

Entire guest suites and private rooms in townhouses record high occupancy rates in New York City, suggesting that privacy and independence are key drivers.

Several market-specific factors likely contribute to this trend:

• High real estate costs in NYC drive demand for an efficient use of space
• Domestic and business travelers arrive in large numbers in the city
• Shorter average length of stay compared to other destinations
• The premium on convenient locations over spaciousness as people prefer being outside to inside

2. Kitchen is a Decisive Performance Driver

Listings with kitchens (19,972 active listings) significantly outnumber those without one (3,009 active listings) in New York City. The market has already realized this is important for city travelers.

The ones with kitchens demonstrate substantially higher occupancy rates than those without: 53% vs. 41%. This 12% difference represents 44 more booked nights annually.

Let’s assume your average daily rate is $200. The 12% occupancy difference represents approximately $8,800 in additional annual revenue. Even if you account for ongoing maintenance costs for kitchen facilities, the ability to charge premium rates is overwhelming. 

How to Use Market Dashboard to Analyze Performance?

The PriceLabs Market Dashboard will help you evaluate how property types can impact performance across different markets.

1. Inventory Growth Assessment

Looking at inventory growth patterns (the growth in active listings in the market) will help you understand the market’s supply and demand patterns and competitive pressures.

For example, in Miami:

March 2024: 1,150 active listings; Current: 1,065 active listings (7% decrease)

Read more: How To Find Out Airbnb Demand In An Area: Complete Guide

High-performing listings (4.8+ ratings): 540 active listings (41% difference from listings that aren’t premium)

Read more: How to Get More Reviews on Airbnb?

This pattern of declining overall inventory but growing premium inventory suggests increasing competition in the luxury rental segment, where factors affecting property value extend beyond basic configuration to include premium amenities and exceptional guest experiences.

2. Comparative Market Analysis

In the Market Dashboard, you can also compare different property types with the key performance metrics of listings with those property types to identify performance patterns. 

Following the previous example, you can further analyze listings with 4.8+ ratings.

Here, you can further analyze how 2-bedroom listings are charging their properties. You can evaluate seasonal performance variations by property type and track RevPAR to determine overall revenue potential. 

This comparative approach is essential because affecting property value often varies significantly between markets: what works in NYC might not work in Vegas or Miami. 

3. Amenity Impact Analysis

You can use PriceLabs Market Dashboard’s Amenity graphs to identify the top-performing amenities in the market. With this graph, you can locate the amenities you can add to your property. This graph will provide the amenities that are the most desired in the market and also the most common ones.

You can then analyze specific amenities in the comp set to provide critical insights into how particular features influence property performance. 

• Identify high-impact amenities that justify investment.
• Quantify the revenue differential between properties with and without specific amenities.
• Calculate ROI for potential property improvements.
• Compare amenity preferences across different markets.

Let’s examine whether adding a hot tub to your property in Phoenix, Arizona, is profitable. The number of active listings with hot tubs has increased by 30% in the last year, making up over 17% of the overall market.

The average daily rate of listings with a hot tub on their property is 14% higher than that of listings without a hot tub. 

4. Booking Pattern Analysis

With the same Market Dashboard, you should be able to understand how different property types impact booking patterns. 

For example, our analysis shows us that:

• Studios often attract shorter stays but higher occupancy
• Larger properties typically command higher rates but may experience more seasonal volatility
• Different property types may attract guests from different geographic regions
• Lead time for bookings often varies by property configuration

Going with the previous example of Phoenix, properties with a hot tub in their property receive maximum booking 2-4 weeks in advance, and most of their stays are short stays for around 3-4 days. 

Analyzing by property type reveals an interesting trend—especially for listings with a hot tub.

Although 4+ bedroom properties are limited (with just 43 active listings, making up 23% of the market), they generate the highest revenue. These larger properties can charge nearly 200% more than the market average—a substantial increase.

However, while the potential profit is impressive, it’s important to factor in higher investment costs and expenses, which can also be significant.

Practical Applications: Strategic Property Selection

We’ve shown you how to analyze your market, but how do you implement the insights from market analysis and create valuable guidance for short-term rental investors looking to maximize performance:

1. Match Property Type to Market Dynamics

Our analysis shows that each market performs differently, and the right property type for maximum revenue would also differ by region.

• Urban centers often favor efficient studios and one-bedrooms
• Vacation destinations typically reward space and outdoor amenities
• Business hubs benefit from dedicated workspaces and connectivity features

When you understand these patterns, you can align acquisition strategies with proven performance models rather than relying on generalized assumptions from the internet about factors affecting property value.

2. Prioritize High-Impact Amenities

Through our analysis, we also discovered that not all amenities provide high returns; you need to base your decisions on your research:

• Kitchens in urban markets (12% occupancy premium in NYC)
• Outdoor spaces in vacation destinations
• Workspace amenities in business-focused markets
• Pet-friendly policies in specific submarkets

What are the factors affecting the value of a property? Our data consistently shows that amenities that address specific pain points for travelers in each market deliver the most substantial ROI.

3. Optimize for Target Guest Demographics

Different property types naturally attract varying guest segments:

• Studios appeal to solo travelers and couples on shorter stays
• Larger units attract families and groups with more extended average stays
• Unique property types (e.g., lofts) draw guests who are interested in unique experiences
• Business-oriented properties appeal to corporate travelers who are always on the go!

The most successful investors identify their target demographic, factors affecting property value and optimize property selection and amenities specifically for that audience.