Waterloo Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Ontario, Canada

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Waterloo in 2025? Explore comprehensive Airbnb analytics for Waterloo, Ontario, Canada to uncover income potential. This 2025 STR market report for Waterloo, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 320 active listings.

Whether you're considering an Airbnb investment in Waterloo, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Waterloo Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Waterloo Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$86
The average rental revenue earned for an occupied room per day in Waterloo.
Occupancy Rate(?)
45.1%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$10,555
Typical annual income for an Airbnb listing in Waterloo. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
1.0%
Positive growth (1.0%) vs. last year.
Peak Revenue Month(?)
June
The month with the highest average earnings, indicating peak season in Waterloo.
Lowest Revenue Month(?)
March
The month with the lowest average earnings, indicating the low season in Waterloo.
STR Regulation Level(?)
Low
Fewer regulations, offering more operational flexibility.
Active Airbnb Listings(?)
320
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Waterloo (2025)

Understanding the monthly revenue variations for Airbnb listings in Waterloo is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Waterloo is typically June, while March often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Waterloo across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $2,835+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $1,859 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $968 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $495, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Waterloo

Waterloo Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Waterloo STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Septembersees the highest demand (peak season occupancy), while March experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Waterloo:

  • Best-in-class properties (Top 10%) achieve 85%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 71% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 46%.
  • Entry-level properties (Bottom 25%) average 21% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Waterloo

Average Daily Rate (ADR) Airbnb Trends in Waterloo (2025)

Effective short term rental pricing strategy in Waterloo involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Waterloo typically peaks in June and dips lowest during March. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $151+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $95 or more.
  • Typical properties (Median) charge around $69 per night.
  • Entry-level properties (Bottom 25%) earn around $41 per night.

Average Daily Rate (ADR) Trend by Month in Waterloo

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Airbnb Seasonality Analysis & Trends in Waterloo (2025)

Peak Season (June, April, May)
  • Revenue averages $1,693 per month
  • Occupancy rates average 45.8%
  • Daily rates average $87
Shoulder Season
  • Revenue averages $1,414 per month
  • Occupancy maintains around 51.1%
  • Daily rates hold near $86
Low Season (January, February, March)
  • Revenue drops to average $898 per month
  • Occupancy decreases to average 39.0%
  • Daily rates adjust to average $80

Seasonality Insights for Waterloo

  • The Airbnb seasonality in Waterloo shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Waterloo's highest earning potential, with monthly revenues capable of climbing to $1,721, occupancy reaching a high of 57.0%, and ADRs peaking at $88.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $765, occupancy could drop to 31.2%, and ADRs may adjust down to $79.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Waterloo.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Waterloo seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Waterloo (2025)

Exploring the top neighborhoods for short-term rentals in Waterloo? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Downtown Waterloo
Vibrant urban center with a mix of dining, shopping, and entertainment options. Great for business travelers and tourists, with close proximity to universities and tech companies.
Waterloo Public Square, City Hall, The Museum, local restaurants and cafes, events and festivals
Uptown Waterloo
An emerging neighborhood with a lively atmosphere, featuring boutique shops, restaurants, and easy access to parks. Attractive for both young professionals and families.
Waterloo Park, Uptown Market, local boutiques, restaurants, cycle paths
Westmount
A suburban area known for its family-friendly neighborhoods, parks, and good schools. Suitable for longer-term stays for families and those relocating.
Westmount Golf & Country Club, Westmount Shopping Centre, local parks, community centers
Laurelwood
Established neighborhood with a great community feel, known for being quiet and safe. Suitable for families and those looking for a peaceful environment.
Laurelwood Park, local schools and amenities, walking trails, close to major highways
Tech District
Home to numerous tech companies and startups, attracting professionals and business travelers. Ideal for short-term stays focused on work.
Research In Motion (BlackBerry) campus, University of Waterloo, Wilfrid Laurier University, tech meetups and events
University of Waterloo
Popular with students and visiting academics. An ideal choice for guests looking for budget-friendly, study-oriented stays.
University of Waterloo, Student residences, local eateries, libraries, colleges
King Street
One of the main thoroughfares in the region, bustling with shops, cafes, and nightlife. Ideal for guests seeking an active urban experience.
Local bars and restaurants, theatre venues, downtown events, art galleries
Conestoga Mall Area
A major shopping hub with diverse retail options, entertainment, and dining. Attracts shoppers and families for leisure stays.
Conestoga Mall, movies and entertainment complex, local parks, restaurants

Understanding Airbnb License Requirements & STR Laws in Waterloo (2025)

While Waterloo, Ontario, Canada currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Waterloo to ensure full compliance before hosting.

(Source: AirROI data, 2025, finding no licensed listings among those analyzed)

Top Performing Airbnb Properties in Waterloo (2025)

Benchmark your potential! Explore examples of top-performing Airbnb properties in Waterloobased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

16 Guest Uptown Waterloo Home (House+Lower Suite)

16 Guest Uptown Waterloo Home (House+Lower Suite)

Entire Place • 9 bedrooms

$74,112
Revenue
66.1%
Occupancy
$519.43
Daily Rate
Spacious 3-bedroom w parking, fast WIFI & king bed

Spacious 3-bedroom w parking, fast WIFI & king bed

Entire Place • 3 bedrooms

$52,725
Revenue
82.2%
Occupancy
$227.78
Daily Rate
10 guest Uptown Waterloo Home

10 guest Uptown Waterloo Home

Entire Place • 7 bedrooms

$49,764
Revenue
61.1%
Occupancy
$430.18
Daily Rate
Luxury Home in Uptown Waterloo

Luxury Home in Uptown Waterloo

Entire Place • 3 bedrooms

$49,617
Revenue
34.0%
Occupancy
$395.91
Daily Rate
Entire 3 Bedroom Century Home, Uptown Waterloo

Entire 3 Bedroom Century Home, Uptown Waterloo

Entire Place • 3 bedrooms

$45,832
Revenue
73.3%
Occupancy
$156.58
Daily Rate
The Glass House custom 4 bedroom Home

The Glass House custom 4 bedroom Home

Entire Place • 4 bedrooms

$45,789
Revenue
54.5%
Occupancy
$303.93
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Top Performing Airbnb Hosts in Waterloo (2025)

Learn from the best! This table showcases top-performing Airbnb hosts in Waterloo based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
JustLikeHome16$175,6115394.88/5.0
Guan4$152,6391344.74/5.0
Laura19$134,8695594.65/5.0
Host #2369687122$123,876754.92/5.0
Tracey & Aahil4$91,0151414.92/5.0
ONpoint5$87,5005184.80/5.0
Carol14$82,5402484.55/5.0
Michael5$76,7943444.76/5.0
Jewels4$75,0502083.71/5.0
Mg2$60,126824.65/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Waterloo.

Dive Deeper: Advanced Waterloo STR Market Data (2025)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Waterloo. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Waterloo Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Waterloo

  • The Waterloo Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 57.5% of the 320 active rentals. This indicates strong guest preference for privacy and space.
  • However, a notable 41.9% share for Private Rooms suggests opportunities for budget-conscious travelers or hosts renting out spare rooms.
  • Looking at the property type distribution in Waterloo, House properties are the most common (58.4%), reflecting the local real estate landscape.
  • Houses represent a significant 58.4% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique (combined 0.3%) offer potential for unique stay experiences.

Waterloo Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Waterloo

  • The dominant room capacity in Waterloo is 1 bedroom listings, making up 35% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 51.9% of the active Airbnb listings in Waterloo, indicating a high concentration in these sizes.

Waterloo Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Waterloo

  • The most common guest capacity trend in Waterloo vacation rentals is listings accommodating 2 guests (18.8%). This suggests the primary traveler segment is likely couples or solo travelers.
  • Properties designed for 2 guests and 4 guests dominate the Waterloo STR market, accounting for 32.6% of listings.
  • 16.9% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Waterloo.
  • On average, properties in Waterloo are equipped to host 2.8 guests.

Waterloo Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Waterloo

  • The most common availability pattern in Waterloo falls within the 271-366 days range, representing 42.2% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 75.0% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 91-180 days range is most frequent in Waterloo (32.2%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 27.5% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Waterloo Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (36.1%)

1 Night

100 listings

36.1% of total

2 Nights (18.4%)

2 Nights

51 listings

18.4% of total

3 Nights (7.2%)

3 Nights

20 listings

7.2% of total

4-6 Nights (7.2%)

4-6 Nights

20 listings

7.2% of total

7-29 Nights (18.1%)

7-29 Nights

50 listings

18.1% of total

30+ Nights (13%)

30+ Nights

36 listings

13% of total

Key Insights

  • The most prevalent minimum stay requirement in Waterloo is 1 Night, adopted by 36.1% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A significant segment (13%) caters to monthly stays (30+ nights) in Waterloo, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 1 Night minimum stay, as 36.1% of Waterloo hosts use this setting.
  • Explore offering discounts for stays of 30+ nights to attract the 13% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Waterloo.

Waterloo Airbnb Cancellation Policy Trends Analysis (2025)

Flexible (20%)

Flexible

50 listings

20% of total

Moderate (37.6%)

Moderate

94 listings

37.6% of total

Firm (14.4%)

Firm

36 listings

14.4% of total

Strict (28%)

Strict

70 listings

28% of total

Cancellation Policy Insights for Waterloo

  • The prevailing Airbnb cancellation policy trend in Waterloo is Moderate, used by 37.6% of listings.
  • There's a relatively balanced mix between guest-friendly (57.6%) and stricter (42.4%) policies, offering choices for different guest needs.

Recommendations for Hosts

  • Consider adopting a Moderate policy to align with the 37.6% market standard in Waterloo.
  • Regularly review your cancellation policy against competitors and market demand shifts in Waterloo.

Waterloo STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Waterloo

  • The overall average booking lead time for vacation rentals in Waterloo is 39 days.
  • Guests book furthest in advance for stays during April (average 57 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 24 days), indicating more last-minute travel plans during this time.
  • Seasonally, Fall (47 days avg.) sees the longest lead times, while Winter (37 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (39 days) as a baseline for your pricing and availability strategy in Waterloo.
  • For April stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 57 days out to capitalize on advance planning.
  • Target marketing efforts for the Fall season well in advance (at least 47 days) to capture early planners.
  • Monitor your own booking lead times against these Waterloo averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Waterloo (2025)

Amenity Prevalence

Amenity Insights for Waterloo

  • Essential amenities in Waterloo that guests expect include: Wifi, Smoke alarm, Carbon monoxide alarm, Heating, Hot water, Air conditioning. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Kitchen, Essentials, TV are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Waterloo: Wifi, Smoke alarm, Carbon monoxide alarm, Heating, Hot water, Air conditioning.
  • Prioritize adding missing essentials: Wifi, Smoke alarm, Carbon monoxide alarm, Heating, Hot water, Air conditioning.
  • Consider adding popular differentiators like Kitchen or Essentials to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Waterloo to stay competitive.

Waterloo Airbnb Guest Demographics & Profile Analysis (2025)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Waterloo

  • The typical guest profile for Airbnb in Waterloo consists of primarily domestic travelers (77%), often arriving from nearby Toronto, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
  • Domestic travelers account for 77.4% of guests.
  • Key international markets include Canada (77.4%) and United States (10.6%).
  • Top languages spoken are English (60.3%) followed by French (10.3%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Target domestic marketing efforts towards travelers from Toronto and Waterloo.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

Nearby Short-Term Rental Market Comparison

How does the Waterloo Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
North East Township34$3,530$264.3348%
Niagara-on-the-Lake413$3,358$265.2044%
Town of Stockton16$3,172$232.4946%
Town of Brant10$2,928$274.4343%
Severn154$2,845$306.3539%
Meaford129$2,843$246.4445%
Town of French Creek46$2,842$286.5833%
King29$2,840$269.0733%
Mulmur43$2,837$283.3342%
Gravenhurst220$2,834$308.9641%

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