Is the Atlantic City Airbnb Boom Dead?

Atlantic City’s short-term rental market has been booming for the past several years, but lately, I’ve been hearing a lot of investors asking: “Is the Airbnb boom in AC over?”

In my experience, the answer is… not quite—but the game has definitely changed. The market is extremely competitive now, and properties that were once easy wins are no longer guaranteed to perform. Generic rentals with basic décor—think standard furniture from big-box stores and uninspired kitchens or bathrooms—are starting to phase out. Guests are gravitating toward properties that feel modern, stylish, and curated, where every detail is thoughtfully designed.

Success in today’s Atlantic City STR market requires a strategic approach. Location is still key: properties near the beach, casinos, or major attractions consistently outperform. But location alone isn’t enough anymore. Investors need to pair a strong location with renovations that elevate the guest experience—high-end kitchens, spa-like bathrooms, and curated interior design are now essential. Trendy, design-forward properties with thoughtful renovations outperform generic listings and maintain a competitive edge.

One major advantage Atlantic City still offers is affordability. Compared to other East Coast beach towns, AC remains one of the cheapest places to buy, making it accessible to investors looking to enter the market. In fact, according to Zillow’s real estate consensus, among the 300 largest U.S. metro-area housing markets, Atlantic City is projected to see the biggest home price increase over the next year:

• Atlantic City, NJ → 4.7%

• Torrington, CT → 4.7%

• Saginaw, MI → 4.6%

• Pottsville, PA → 4.4%

• Rockford, IL → 4.3%

• Kingston, NY → 4.3%

• Concord, NH → 4.3%

• Knoxville, TN → 4.2%

• Hartford, CT → 4.1%

• New Haven, CT → 4.0%

• Hilton Head Island, SC → 4.0%

• Vineland, NJ → 4.0%

• Fayetteville, AR → 3.9%

• Norwich, CT → 3.9%

• Youngstown, OH → 3.7%

With Atlantic City at the top of this list—and major development projects in the works—the city still has significant upside for investors of all types. But for the savvy short-term rental investor, it’s important not to put blinders on: location, design, and renovations are just as critical as ever to ensure a property can compete and thrive in today’s market.

So, is the Airbnb boom dead in Atlantic City? Not at all—but the rules of the game have changed. Strategy, design, and execution matter more than ever—and the right property in the right hands can still be a strong performer.