Neighborhood Nexus: Uncovering the Hidden Correlation Between STR Occupancy and Local Property Values

Introduction

Real estate markets are complex ecosystems, influenced by a multitude of factors. One often-overlooked aspect is the correlation between short-term rental (STR) occupancy rates and local property values. In this article, we'll delve into the data to explore this relationship and uncover trends that can inform real estate investors.

Median Prices Across the United States

Let's begin by examining the median sale prices for various cities across the United States. According to the data, the median sale price in New York, NY is $825,000, with homes typically staying on the market for 74 days. In contrast, Los Angeles, CA has a median price of $736,000, with homes staying on the market for 43 days. This represents a difference of $89,000. Occupancy analysis suggests that STR occupancy rates can significantly impact local property values. For instance, cities with high STR occupancy rates tend to have lower median sale prices, as investors focus on short-term gains over long-term appreciation. | City | Median Price | Days on Market | | --- | --- | --- | | New York, NY | $825,000 | 74 | | Los Angeles, CA | $736,000 | 43 | | Chicago, IL | $400,000 | 48 | | Houston, TX | $355,000 | 47 | | Phoenix, AZ | $485,000 | 50 | | Philadelphia, PA | $255,000 | 50 |

Comparing Homes Sold and Inventory

Another crucial aspect to consider is the number of homes sold and available inventory. According to the data, New York, NY has sold 2381 homes in the past year, with an inventory of 14,259 homes. In contrast, Los Angeles, CA has sold 78 homes, with an inventory of 231 homes. | City | Homes Sold | Inventory | | --- | --- | --- | | New York, NY | 2381 | 14,259 | | Los Angeles, CA | 78 | 231 | | Chicago, IL | 1134 | 3,225 | | Houston, TX | 1,680 | 7,997 | | Phoenix, AZ | 1,451 | 5,604 | | Philadelphia, PA | 885 | 3,493 |

Days on Market

When it comes to days on market, the data reveals some interesting insights. New York, NY has an average days on market of 74, while Los Angeles, CA has an average of 43 days. This difference can be attributed to various factors, including STR occupancy rates and local market conditions. | City | Days on Market | | --- | --- | | New York, NY | 74 | | Los Angeles, CA | 43 | | Chicago, IL | 48 | | Houston, TX | 47 | | Phoenix, AZ | 50 | | Philadelphia, PA | 50 |

High-End Markets

Moving on to high-end markets, we find some striking differences. The median sale price in Sturgis, SD is a staggering $36,937,500, with an average days on market of 200. In contrast, Indian Creek, FL has a median sale price of $79,000,000, with an average days on market of 141. | City | Median Price | Days on Market | | --- | --- | --- | | Sturgis, SD | $36,937,500 | 200 | | Indian Creek, FL | $79,000,000 | 141 | | Indian Field, CT | $17,500,000 | 496 | | Makena, HI | $17,250,000 | 409 | | Hillsboro Beach, FL | $15,650,000 | 149 | | Sagaponack, NY | $15,500,000 | 82 | | Palm Beach, FL | $13,750,000 | 85 | | Watch Hill, RI | $11,750,000 | 182 | | Water Mill, NY | $11,711,000 | 157 | | Gulf Stream, FL | $11,475,000 | 199 | Local analysis suggests that high-end markets often have unique characteristics that impact property values.

Conclusion

In conclusion, our analysis has shown that STR occupancy rates and local property values are intricately linked. By examining median prices, homes sold, and days on market, we've gained valuable insights into the dynamics of various markets. As real estate investors, it's essential to consider these factors when making informed decisions. Occupancy analysis is crucial for understanding the nuances of local markets. By leveraging data-driven insights, investors can make more informed decisions and capitalize on emerging trends.

Recommendations

Based on our analysis, we recommend that investors consider the following: * Focus on markets with high STR occupancy rates, as they tend to have lower median sale prices. * Analyze local market conditions, including days on market and inventory, to inform investment decisions. * Consider high-end markets, which often have unique characteristics that impact property values. By following these recommendations, investors can unlock the secrets of the neighborhood nexus and make informed decisions in the ever-changing real estate landscape. Property analysis is a critical aspect of real estate investing, and by staying informed, investors can mitigate risks and capitalize on opportunities.

Final Thoughts

In conclusion, the correlation between STR occupancy rates and local property values is a complex and multifaceted topic. By examining data-driven insights and trends, investors can gain a deeper understanding of the neighborhood nexus and make more informed decisions. As the real estate market continues to evolve, it's essential to stay ahead of the curve and leverage data-driven analysis to unlock opportunities and mitigate risks. Occupancy analysis and occupancy analysis are essential tools for investors seeking to navigate the complex world of real estate. By staying informed and leveraging data-driven insights, investors can unlock the secrets of the neighborhood nexus and achieve success in the ever-changing real estate landscape.