As inflation and fears of a recession continue to plague the average American's wallet, folks are searching for ways to make extra cash. Most people know it as the "side hustle," and in generations past, it may have been called "moonlighting." Whatever you call it, having a second job can be common, especially during times of financial difficulty.
Before smart devices, a second job might look like a Saturday shift at the local diner or a few night shifts driving a cab. But the internet and technology have given birth to what we call the gig economy today. The use of these services is so ubiquitous in our daily lives that it might be more aptly referred to by its other name -- the access economy. The fulcrum of its success is that all services are on-demand. Which makes it revolutionary for both consumers and gig workers.
Among the list of app-based businesses to carve a path through the gig economy landscape are rental services like Expedia Group's (EXPE) Vrbo and AirBnB (ABNB). For travelers, the apps provide an alternative to a hotel room. And for anyone looking for some extra cash, an apartment or house with space to loan out could potentially provide a major source of income.
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AirBnB Hosts Are Making Big Money in Several States
Of the two user-hosted rental apps, AirBnB is the household name. Using data from AirBnB host payments in 2021, it's clear that real estate investors are making some major dough through the service.
Average annual host earnings were greatest in the U.S., according to data. AirBnB hosts made on average $44,235 in 2021. Australia hosts followed behind with an average annual take-home of nearly $28,000, while hosts in the U.K. made just over $22,000.
On a closer look at AirBnBs operating in the U.S., hosts in Hawaii, one of the world's most popular travel destinations, took home an average of $73,247 in 2021. Perhaps a little surprisingly, the second most lucrative state was Tennessee. The state is home to popular log cabins and a lakefront mansion in Gallatin that helped the average host take home $67,510. Third place went to the home of the Grand Canyon and cactus-dotted desert landscapes, Arizona, earning the average host more than $60,000.
Several more states on the list come as no surprise: Colorado, California, and Florida AirBnB hosts brought home between $53,000-$58,000. Other states, like South Carolina, Utah, Oregon, and Alabama may be a little more surprising -- these hosts pulled in an average between $41,000-$50,000.
AirBnB Faces Criticism Due to Real Estate Investments
Renting out a home in Hawaii or California is certain to be an excellent side hustle for those who need it, but it's worth considering what percentage of hosts may not live in the homes they're renting out.
Services like AirBnB and Vrbo have come under fire on social media recently. As real estate investors began to recognize the opportunities presented by these services, the number of investors scooping up properties in popular cities has put a strain on local housing markets. For those considering renting out their own personal homes, even in these popular states, results may vary.
