ADR Leaders: Unveiling the Cities with the Highest Short-Term Stay Rates

The short-term rental market is a dynamic landscape, and understanding Average Daily Rates (ADR) is crucial for investors and property managers. This analysis dives into key cities to reveal where short-term accommodations command the highest prices, offering insights into potential profitability and market trends.

ADR and Occupancy Overview

Let's examine the ADR and occupancy rates across several cities. Raleigh, CO, stands out with a high ADR of $361 and an occupancy rate of 76%. In contrast, Nashville, WA, has a much lower ADR of $115, coupled with an occupancy rate of 62%. Understanding these differences is key to making informed investment decisions.

Comparing Key Markets

Several cities show strong performance in the short-term rental market. Phoenix, AZ, boasts an ADR of $328 and a solid occupancy rate of 75%. Orlando, FL, mirrors this ADR at $328 but has a slightly lower occupancy rate of 61%. This suggests that while both cities can command similar daily rates, Phoenix properties are occupied more frequently.

Portland, FL, presents a different picture with an ADR of $297 and a high occupancy rate of 82%. This indicates strong demand and consistent bookings, even at a slightly lower price point compared to Phoenix and Orlando.

Detailed City Analysis

Orlando, FL vs. Orlando, OR

Interestingly, we see two entries for Orlando, one in Florida and one in Oregon. Orlando, FL, has an ADR of $328 and an occupancy rate of 61%, resulting in an estimated ROI of 11.55%. Orlando, OR, has a slightly lower ADR of $313 but the same occupancy rate of 61%, leading to an estimated ROI of 13.85%. While the ADR is lower in Orlando, OR, the ROI is higher, suggesting potentially lower operating costs or property values.

Phoenix, AZ vs. Phoenix, CA

Similarly, Phoenix appears in both Arizona and California. Phoenix, AZ, has an ADR of $328 and an occupancy rate of 75%, with an estimated ROI of 17.23%. Phoenix, CA, has a lower ADR of $278 and an occupancy rate of 67%, resulting in an estimated ROI of 6.52%. The Arizona market appears significantly more lucrative based on these metrics.

Nashville, NC vs. Nashville, TX vs. Nashville, WA

Nashville also appears multiple times across different states. Nashville, NC, has an ADR of $309 and an occupancy rate of 67%, with an estimated ROI of 14.93%. Nashville, TX, has a lower ADR of $240 but a higher occupancy rate of 75%, resulting in a higher estimated ROI of 18.60%. Nashville, WA, has the lowest ADR of $115 and an occupancy rate of 62%, but an impressive estimated ROI of 19.28%. This highlights that high ADR doesn't always equate to the best ROI; occupancy and other factors play a crucial role.

Charlotte, FL vs. Charlotte, NC

Charlotte, FL, shows an ADR of $338 and an occupancy rate of 68%, resulting in an estimated ROI of 15.18%. Charlotte, NC, has a significantly lower ADR of $162 and the same occupancy rate of 68%, leading to an estimated ROI of 5.63%. The Florida market appears to command much higher daily rates in this comparison.

Seattle, FL vs. Seattle, CA

Seattle, FL, has an ADR of $194 and an occupancy rate of 78%, with an estimated ROI of 5.73%. Seattle, CA, has a lower ADR of $132 but a slightly higher occupancy rate of 79%, resulting in an estimated ROI of 11.42%. Despite the lower ADR, the California market shows a better ROI.

Inventory Considerations

The total number of listings also varies significantly across these cities. Phoenix, CA, has 912 total listings, while Nashville, WA, has only 117. This difference in inventory can impact both ADR and occupancy rates. A higher inventory might lead to more competitive pricing, potentially lowering ADR, while a lower inventory could drive up prices due to increased demand.

ROI and Cap Rate Analysis

Estimated ROI and cap rates provide further insights into the profitability of short-term rentals. San Antonio, TX, boasts an impressive estimated ROI of 19.31% with an ADR of $265 and an occupancy rate of 74%. This high ROI suggests strong potential for investors in this market. In contrast, Phoenix, CA, has a lower estimated ROI of 6.52%, indicating potentially lower returns on investment.

Data Visualization

City	State	ADR	Occupancy	ROI
Orlando	FL	$328	61%	11.55%
Phoenix	AZ	$328	75%	17.23%
Portland	FL	$297	82%	7.74%
Nashville	WA	$115	62%	19.28%
Raleigh	CO	$361	76%	13.80%
San Antonio	TX	$265	74%	19.31%
Seattle	CA	$132	79%	11.42%
Charlotte	NC	$162	68%	5.63%

Conclusion

Analyzing ADR and occupancy rates provides valuable insights into the short-term rental market. Cities like Raleigh, CO, and Phoenix, AZ, command high ADRs, while others like Portland, FL, excel in occupancy. Understanding these nuances, along with factors like inventory and ROI, is essential for investors looking to maximize their returns in the short-term rental space. The data clearly shows that a high ADR doesn't always guarantee the best ROI, and a comprehensive analysis is crucial for making informed decisions.