Airbnb Market Analytics, Statistics and Data in Palo Alto, California, United States
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Palo Alto? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Palo Alto:
How much do Airbnb hosts make on average per month in Palo Alto?
The short-term rental market in Palo Alto shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,947 per month
- Strong performing properties (top 25%) make $4,922 or more
- Best-in-class properties (top 10%) achieve $8,276+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,680
Revenue Variations by Month
Occupancy Rates Throughout the Year in Palo Alto
The market in Palo Alto shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 57% occupancy rates
- Strong performing properties (top 25%) achieve 78% or higher
- Best-in-class properties (top 10%) reach 89%+occupancy
- Entry-level properties (bottom 25%) average around 31%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Palo Alto
Daily rates in Palo Alto vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $166 per night
- Strong performing properties (top 25%) secure $243 or more
- Best-in-class properties (top 10%) pull in $445+ per night
- Entry-level properties (bottom 25%) earn around $106
Daily Rate Variations by Month
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Seasonality patterns in Palo Alto
Peak Season (July, June, May)
- Revenue peaks at $5436.02 per month
- Occupancy rates reach 69.59%
- Daily rates average $241.90
Shoulder Season
- Revenue averages $4017.43 per month
- Occupancy maintains 54.36%
- Daily rates hold at $233.92
Low Season (October, December, January)
- Revenue drops to $3190.79 per month
- Occupancy decreases to 45.95%
- Daily rates adjust to $224.02
Is it still profitable to do Airbnb in Palo Alto in 2025?
Yes! Palo Alto demonstrates moderate seasonality with good off-peak opportunities, featuring a healthy occupancy rate of 54% and strong monthly revenue averaging $4017 and With 483 active listings, the market shows established demand while maintaining room for growth. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Palo Alto
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Downtown Palo Alto | The heart of the city, known for its cafes, shops, and proximity to Stanford University. Attracts both tourists and business travelers due to its vibrant atmosphere and convenient location. | Stanford University, Palo Alto Art Center, Downtown City Library, Palo Alto Farmers Market, Heritage Park |
| University South | A charming residential area filled with historic homes and tree-lined streets, close to Stanford University and major tech companies. Popular among families and academics. | Stanford Shopping Center, Rinconada Park, Elizabeth F. Gamble Garden, Palo Alto Junior Museum and Zoo |
| Midtown Palo Alto | A family-friendly neighborhood with parks and good schools, offering a suburban feel while still being close to downtown attractions. Great for family visitors and longer stays. | Lindenwood Park, Palo Alto Bike Path, Midtown Shopping Center, Bocce Ball Courts at Midtown |
| Professorville | One of the most historic neighborhoods in Palo Alto, known for its beautiful Victorian homes and proximity to Stanford. Appeals to those interested in heritage and tranquility. | Professorville Historic District, Various local art galleries, Palo Alto's picturesque streets |
| Downtown North | A desirable area featuring beautiful architecture and a mix of residential and commercial spaces. Close to campus, making it appealing for students and visitors. | Heritage Park, Rinconada Park, Stanford Theatre, Palo Alto Elks Lodge |
| Southgate | Home to many students and faculty from Stanford University, Southgate offers a vibrant community atmosphere with numerous local eateries and parks. | Greenmeadow Park, Southgate Community Center, Restaurants along El Camino Real |
| Barron Park | A quiet and serene neighborhood that provides a suburban retreat while still maintaining accessibility to both Stanford and downtown amenities. | Barron Park Elementary School, Parks and green spaces, Nearby local stores |
| California Avenue | A lively area with a mix of boutiques, cafes, and restaurants, often hosting local events and farmer's markets. Popular with visitors looking for local culture and cuisine. | California Avenue Farmers Market, Various dining options, Palo Alto Caltrain Station |
Do you need a license for Airbnb in Palo Alto?
We recommend checking directly with Palo Alto's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Palo Alto
EXQUISITE PALO ALTO HOME | LOVELY ENGLISH GARDENS
Entire Place • 4 bedrooms
Special Downtown Palo Alto House
Entire Place • 5 bedrooms
Atrium Eichler in heart of Palo Alto - 5BR/3BA
Entire Place • 5 bedrooms
Palo Alto Modern Retreat
Entire Place • 3 bedrooms
Luxurious 5BR/4.5BA house near Stanford with AC
Entire Place • 5 bedrooms
Cozy Modern house in Palo Alto
Entire Place • 5 bedrooms
Top Performing Professional Hosts in Palo Alto
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Serena | 48 | $1,416,864 | 455 | 3.46/5.0 |
| Tracy | 6 | $573,924 | 593 | 4.97/5.0 |
| Kathy | 34 | $472,594 | 777 | 3.80/5.0 |
| April | 6 | $437,207 | 746 | 4.87/5.0 |
| Mike | 4 | $285,247 | 200 | 4.79/5.0 |
| Ana Luisa | 6 | $277,814 | 539 | 4.84/5.0 |
| Kylee | 2 | $276,732 | 155 | 5.00/5.0 |
| Yanhua | 14 | $265,397 | 241 | 4.70/5.0 |
| Annette | 1 | $262,610 | 113 | 5.00/5.0 |
| Lili | 5 | $241,295 | 211 | 4.79/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Palo Alto
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (71%), with house and apartment & condo properties comprising 81.4% of inventory
- Untapped potential in outdoor & mobile segments (1.2% combined)
Room Capacity Distribution
Analysis of 483 properties in Palo Alto shows that 1 bedroom properties are most prevalent, making up 42.7% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 58.0% of all listings.
Key Insights
- Most common: 1 bedroom (42.7%)
- Least common: 5+ bedrooms (3.3%)
- Market concentration: 58.0% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 483 properties in Palo Alto reveals that 2 guests properties dominate the market, representing 36% of all listings. The average property accommodates 2.7 guests, with a clear trend towards smaller guest capacities. Properties accommodating 2 guests and 4 guests make up 47.4% of the market.
Key Insights
- Most common capacity: 2 guests (36% of market)
- Least common capacity: 7 guests (2.7% of market)
- Average guest capacity: 2.7 guests per property
- Market concentration: 47.4% in top 2 capacity sizes
- Market segmentation: Predominantly smaller guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 483 properties in Palo Alto, the most common availability pattern is 271-366 days (33.3% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (28.8% of properties).
Key Insights
- Most common availability window: 271-366 days (33.3%)
- Most common booking duration: 91-180 days (28.8%)
- Properties with high availability (180+ days): 62.5%
- Properties with long-term bookings (180+ days): 38.9%
Minimum Stay Distributions
1 Night
106 listings
23.9% of total
2 Nights
78 listings
17.6% of total
3 Nights
71 listings
16% of total
4-6 Nights
66 listings
14.9% of total
7-29 Nights
69 listings
15.6% of total
30+ Nights
53 listings
12% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 41.5%
- Mid-length stays (4-6 nights) represent 14.9% of listings
- Monthly+ stays (12%) suggest a stable extended-stay market
- High market flexibility with 57.5% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Flexible
74 listings
17.7% of total
Moderate
121 listings
29% of total
Firm
79 listings
18.9% of total
Strict
143 listings
34.3% of total
Key Insights
- Strict is the preferred policy at 34.3% of listings
- The market shows a balanced distribution between guest-friendly (46.7%) and strict (53.2%) policies
- Flexible policies are least common at 17.7% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Diverse policy distribution indicates an opportunity to differentiate through policy choice
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jun, Jul, May, averaging 68 days
- Shortest booking windows are in Sep, Dec, Jan, averaging 39 days
- Summer shows the longest average booking window at 68 days, while Winter has the shortest at 40 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 68 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Sep-Jan when lead times are shortest
Popular Airbnb Amenities in Palo Alto
Every property in Palo Alto comes standard with Wifi. Below shows the distribution of other amenities:
Traveler Demographics
Key Insights
- Domestic travelers make up 75.8% of total guests, indicating a dominant local market share.
- Primary international markets: United Kingdom (3.3%) and China (2.8%)
- English is the top language at 65.1%, followed by Spanish (13.1%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 6.1%
Recommendations
- Target marketing campaigns for New York and San Francisco markets
- Develop localized content for United Kingdom and China
- Prioritize English and Spanish language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Palo Alto. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Carmel Point | 14 | $17,197 | $1060.21 | 54% |
| Big Sur | 10 | $13,758 | $1307.48 | 49% |
| Del Monte Forest | 102 | $10,351 | $907.23 | 47% |
| Sonoma | 226 | $9,950 | $763.78 | 46% |
| Eldridge | 18 | $9,899 | $862.21 | 44% |
| Glen Ellen | 79 | $9,092 | $738.01 | 44% |
| Carmel-by-the-Sea | 309 | $8,776 | $666.30 | 48% |
| Dillon Beach | 79 | $8,690 | $647.65 | 44% |
| Moss Beach | 35 | $8,668 | $635.23 | 51% |
| Kenwood | 55 | $8,081 | $707.34 | 40% |
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