Hotel Performance as a Market Indicator: Correlations With Real Estate Growth

In recent years, the real estate market has experienced significant fluctuations, with prices and sales volumes varying across different cities. One indicator that can provide insights into the market is hotel performance, as it reflects the demand and supply dynamics of a city. In this article, we'll explore the correlations between hotel performance and real estate growth in various cities.

Let's start by looking at the median sale price and homes sold in different cities. According to the data, the median sale price in Rogers, AR is $432,500, while in Detroit, MI, it's $99,000. This difference of $333,500 highlights the significant disparity in prices between these two cities.

Another key metric to consider is the number of homes sold. In Rogers, AR, only 1 home was sold, whereas in Detroit, MI, 504 homes were sold. This suggests that the demand for housing in Detroit is much higher than in Rogers.

Additionally, the data shows that the median days on market (DOM) vary significantly across cities. In Rogers, AR, homes stay on the market for 3 days, while in Detroit, MI, they stay on the market for 49 days. This indicates that the housing market in Rogers is moving quickly, while in Detroit, it's slower.

Let's compare the market conditions in Rogers, AR with those in Detroit, MI. In Rogers, the affordability index is 260.63, while in Detroit, it's 13166666.66. This indicates that Detroit has a much lower affordability index, making it less attractive to potential buyers.

The short-term rental market in Rogers, AR is also worth examining. According to the data, the median list price in Rogers is $240,000, while in Detroit, it's $40,000. This significant difference in prices suggests that the short-term rental market in Detroit is more competitive than in Rogers.

Furthermore, the data shows that the median price per square foot (PPSF) varies across cities. In Rogers, AR, the median PPSF is $167.14, while in Detroit, MI, it's $56.50. This indicates that properties in Rogers are generally more expensive than in Detroit.

In conclusion, hotel performance can serve as a valuable indicator of real estate growth and trends. By analyzing the median sale price, homes sold, and days on market, we can gain insights into the demand and supply dynamics of a city. The data suggests that cities like Rogers, AR, and Detroit, MI, have different market conditions, with Rogers experiencing a more competitive and faster-moving market, while Detroit has a slower and more affordable market. By understanding these correlations, real estate professionals can make more informed decisions and better serve their clients.