October 12, 2026
Samuel Foote | REALTOR® | DRE#02081916
When looking for an Airbnb investment in San Diego, one of their first questions asked is usually, “What neighborhood should I buy in?” Many people assume that a “vacation rental” automatically means a home at the beach or in the mountains, usually near a ski resort.
What location to invest in is an important question. But there’s another question that can help uncover opportunities: What are guests looking for that they’re having trouble finding?
As a Real Estate Professional managing four Airbnbs in San Diego, it’s my job to look at properties from multiple angles—what makes sense to purchase, and what makes sense to operate. Everyone knows location matters, but so does understanding who would stay at the property and why they would choose it over the alternatives.
An opportunity could lie in a neighborhood worth investigating. It could also be a property type, a layout, or a feature that other rentals aren’t providing well. So let’s take a deeper look at the opportunities I look for and have found.
Start With the Reason for the Trip
“People visiting San Diego” is a pretty broad audience.
Just imagine all of the different reasons someone would need an AirBnb. A family with small children visiting grandparents might prioritize laundry and a fully appointed kitchen for their kids. A group attending a sporting event might care more about proximity to the venue. Someone traveling for business might need to be close to the convention center or public transit. A guest traveling with a dog may be looking for a secure yard or at least proximity to a dog park.
These guests are searching for different things, even if their travel dates and budgets are similar.
Before choosing a property, ask yourself:
Who would stay here?
What brings them to this part of San Diego?
What would make their visit easier?
How well do the existing rentals meet those needs?
The more specific you can be, the easier it becomes to evaluate whether a property is a good fit and, more importantly, how well it will perform.
Look for the Part of the Market That Is Being Underserved
A market can have plenty of short-term rentals and still have gaps.
For example, there might be numerous listings that advertise room for eight guests, but fewer with enough bathrooms, comfortable beds, and a dining table where eight people can actually eat together.
There could be pet-friendly properties that offer very little outdoor space. Or rentals advertised for longer visits that lack storage, parking, a practical kitchen, or a comfortable place to work.
You might look at homes suited to larger families, properties with step-free access, or rentals near a particular reason for visiting. These aren’t claims that those segments are currently underserved in San Diego. They’re starting points for research and a framework to use when considering your options.
The goal is to identify a need that existing properties aren’t meeting well, then determine whether enough guests share that need.
Study the Competition From the Guest’s Perspective
Once you’ve developed a general idea, search for a rental as if you were that guest.
If you were bringing two children and a dog, which properties would you consider? If you needed a month-long stay, would the kitchen and workspace be comfortable enough for everyday use?
Look beyond the listing headline. Study the photos, sleeping arrangements, amenities, and reviews.
Reviews can be especially useful. Repeated comments about parking, noise, uncomfortable beds, or confusing access can point to problems worth solving. Positive reviews can also reveal what guests value: an easy arrival, a well-equipped kitchen, or space for the whole family to spend time together.
A pattern in guest comments, both positive and negative, gives you something to investigate further.
Make Sure the Gap Has Real Demand
Finding very few competing properties can feel exciting. But limited supply doesn’t automatically mean there’s a profitable opportunity. There may be little competition because there’s little demand. Or the cost of meeting that need may be higher than guests are willing to pay.
Checking the numbers on a website like AirDNA will be useful here. Compare relevant properties, research their rates and seasonal performance, and consider how often your target guest is likely to visit. Rental data tools can help, but also try to make the comparison specific enough to achieve the goal we’re discussing in this article.
A citywide average won’t tell you whether a particular home will work for a particular audience.
The Google Keyword Planner tool provides estimated monthly searches for keywords and close variants, with geographic and date settings.
You could investigate phrases such as:
“5 bedroom vacation rental San Diego”
“San Diego vacation rental for 10 people”
“large family vacation rental San Diego”
“5 bedroom vacation rental Point Loma”
This measures Google searches, not searches inside Airbnb. Also, don’t restrict the searcher’s location to San Diego—you’re investigating people traveling to San Diego.
You may also find the website “Answer the Public” useful, as it helps uncover questions and search phrases related to your topic, giving you clues about what potential guests are looking for and which needs are worth investigating.
Again, tools like AirDNA have a rentalizer that uses historical performance of comparable listings and shows their estimated occupancy, average daily rate, revenue, and days available, alongside bedroom, bathroom, and guest counts to spit out estimated performance metrics.
Build the Property Around the Need
Once you’ve identified and validated a gap, use it to guide your decisions.
If you’re targeting families, that could influence the layout, furniture, sleeping arrangements, laundry facilities, and supplies you provide.
If reliable parking is part of the opportunity, make the parking arrangement clear in the listing. If you’re offering accessibility features, describe and photograph them accurately so guests can determine whether the property fits their needs.
Buying a property is one way to address a gap. Improving an existing rental may be another.
Sometimes the opportunity is making a useful feature easier to find and understand. A guest shouldn’t have to search through thirty photos to discover the benefit that would make them book.
Find the Opportunity Before You Buy
It’s easy to fall in love with a property and then try to figure out how to make it work as an Airbnb.
I’d encourage you to ask these questions earlier.
Who is the guest? What do they need? What are their current options missing? And can this property meet that need at a price that makes sense? In San Diego, with prices and cap rates being what they are, that question is usually - How much do I have to put down on the loan to make it cash flow?
Any potential purchase also needs a separate check of applicable short-term rental requirements and property restrictions.
If you’re considering an Airbnb investment in San Diego, let’s look at both the property and the opportunity behind it. Together, we can evaluate the competition, potential income, and operating needs so you have a clearer picture before making a decision.
