Hotel Performance as a Market Indicator: Identifying Hidden Gems for Real Estate Investment

Real estate investors often look for cities with strong tourism infrastructure as a market indicator for potential growth. In this article, we will examine the hotel metrics of various cities and identify those with favorable conditions for real estate investment.

One key metric to consider is the median sale price of homes in each city. According to the data, New York, NY has a median sale price of $825,000, while Los Angeles, CA has a median sale price of $736,000. This represents a difference of $89,000, indicating that New York is a more expensive market.

Another important factor to consider is the number of homes sold in each city. New York, NY had 2381 homes sold, while Los Angeles, CA had only 78 homes sold. This indicates that the market in New York is more active than in Los Angeles.

The days on market (DOM) is also an important metric to consider. In New York, NY, homes typically stay on the market for 74 days, while in Los Angeles, CA, homes stay on the market for 43 days. This indicates that homes in Los Angeles are selling faster than in New York.

According to the data, Sturgis, SD has a median sale price of $369,375,000, with only 1 home sold. This represents a high-end market with limited inventory.

Indian Creek, FL has a median sale price of $79,000,000, with only 1 home sold. This is another high-end market with limited inventory.

Makena, HI has a median sale price of $17,250,000, with only 1 home sold. This is also a high-end market with limited inventory.

Hillsboro Beach, FL has a median sale price of $15,650,000, with only 1 home sold. This is another high-end market with limited inventory.

Palm Beach, FL has a median sale price of $13,750,000, with 5 homes sold. This is a high-end market with some inventory.

Watch Hill, RI has a median sale price of $11,750,000, with only 1 home sold. This is a high-end market with limited inventory.

Water Mill, NY has a median sale price of $11,711,000, with only 1 home sold. This is a high-end market with limited inventory.

Gulf Stream, FL has a median sale price of $11,475,000, with 2 homes sold. This is a high-end market with some inventory.

According to the data, the cities with the highest median sale prices are Sturgis, SD, Indian Creek, FL, Makena, HI, Hillsboro Beach, FL, Palm Beach, FL, Watch Hill, RI, Water Mill, NY, and Gulf Stream, FL.

It's worth noting that these high-end markets may be more attractive to investors looking for luxury properties, but may also come with higher price tags and limited inventory.

For real estate investors looking for a more affordable option, cities like San Antonio, TX, with a median sale price of $189,000, may be more appealing.

According to the data, the cities with the lowest median sale prices are San Antonio, TX, San Diego, CA, San Jose, CA, Dallas, TX, Philadelphia, PA, Chicago, IL, and Phoenix, AZ.

These cities may be more accessible to first-time homebuyers or those on a budget, but may also have more competition and slower market activity.

When considering a city for real estate investment, it's essential to look at the overall market trends and not just individual metrics. According to the data, Los Angeles, CA has a median sale price of $736,000, with a low inventory of 231 homes and a DOM of 43 days. This indicates a fast-paced market with limited supply.

On the other hand, San Antonio, TX has a median sale price of $189,000, with a high inventory of 358 homes and a DOM of 79 days. This indicates a slow market with plenty of supply.

By analyzing these metrics, real estate investors can identify the best cities for their investment goals and budget.

For more information on real estate analysis and market trends, check out our article on AI in Real Estate: How Realtors Can Future-Proof Investment and Market Trends Analysis 2024.

Additionally, for a deeper dive into the short-term rental market, check out Short-Term Rental Market Outlook: Which Cities Are Poised for Growth in 2025? and The Evolving Short-Term Rental Market in Utah: Trends, Insights, and Top Markets for more information.

Lastly, for a look at the top Airbnb markets in Missouri, check out Top 15 Largest Airbnb Markets in Missouri, United States 2025 for more information.

By understanding the hotel performance and market trends in various cities, real estate investors can make informed decisions and find the best opportunities for growth and profit.