Is Airbnb Worth It in San Diego in 2025? A Profitability Guide for Owners

Mark Palmiere
1d
2 min read

Is Airbnb still worth it in San Diego in 2025? With new STRO regulations, fluctuating tourism trends, and rising operating costs, homeowners want clarity before investing or launching a listing. The truth is that Airbnb is still one of the most profitable uses of residential property in San Diego—but success now depends heavily on compliance, neighborhood, and professional management.

San Diego STR Profit Snapshot for 2025

Across single-family homes and condos, revenue potential remains strong:

Average nightly rate (ADR): $265–$420
Peak season ADR: $400–$650+ (Mission Beach, Pacific Beach, La Jolla)
Occupancy: 62%–78%
Peak demand: March–October, plus holidays and event weeks
Average annual gross revenue for 2–4 bedroom homes: $60k–$165k+

Properties in premium beach zones generally outperform the citywide average due to tourism density and walkability.

What Determines Profitability

Whether hosting is “worth it” depends on six factors:

1. Neighborhood Demand

Mission Beach, PB, La Jolla, Little Italy, East Village, and North Park remain STR hotbeds. High walkability + proximity to water = stronger yields.

2. Permit Type (STRO Tier)

Tier 4 (whole-home non-primary) is limited by lottery and therefore sees higher returns. Tier 3 (primary residence 90+ nights) can also be highly profitable depending on the neighborhood.

3. Listing Quality

Guests compare thousands of listings. Homes with updated interiors, outdoor amenities, and strong photography earn much more.

4. Dynamic Pricing

Static pricing destroys profitability. Homes using advanced pricing strategies routinely earn 20–40% more.

5. Guest Experience

Reviews impact both ranking and revenue. Consistent 5-star cleanliness and communication matter.

6. Professional Management

DIY hosts leave money on the table due to slow messaging, inconsistent cleaning, or poor pricing.

West Coast Homestays routinely increases revenue for owners through better design, pricing, and guest experience systems.

What Does It Cost to Operate an Airbnb in San Diego?

Expenses vary, but here are typical ranges:

Cleaning + laundry
Management fee: 20–30% full-service / 10–20% cohosting
Maintenance and restocking
Utilities + landscaping
TOT (10.5%) + TBID (2%) taxes
STRO permit costs + renewals
Repairs, replacements, and upgrades

Despite these costs, well-managed San Diego Airbnbs still offer some of the best cash flow in the state.

Realistic Profit Expectations

A professionally managed home in a strong neighborhood can usually keep 35–55% net margin after expenses (before mortgage). High-demand coastal homes often land higher.

Should You DIY or Hire a Manager?

If you value your time, want higher revenue, or aren’t familiar with San Diego-specific laws, management usually pays for itself. West Coast Homestays handles STRO compliance, dynamic pricing, cleaning, guest communications, damage claims, and revenue reporting—all the factors that make or break ROI.

Bottom Line

Airbnb is still extremely worth it in San Diego in 2025, but only when operated with professional systems. Homes managed by West Coast Homestays consistently outperform due to better pricing, stronger operations, and a local-first approach.