Occupancy Outlook: Which Locales Are Poised for Short-Term Let Growth?

The short-term rental market is dynamic, and understanding occupancy trends is crucial for investors. This analysis dives into key metrics across various cities to identify locales poised for growth.

Key Performance Indicators: ADR and Occupancy

Two critical indicators for short-term rental success are Average Daily Rate (ADR) and Occupancy Rate. A high ADR indicates strong pricing power, while a high occupancy rate reflects consistent demand. Let's examine how different cities stack up.

ADR Comparison

The Average Daily Rate (ADR) varies significantly across the cities analyzed. For example, Dallas, TX, boasts an ADR of $357, while Houston, TX, has a much lower ADR of $107. Miami, FL, leads the pack with an ADR of $398, showcasing its premium market. San Antonio, TX, has an ADR of $195. Raleigh, NC, has an ADR of $137.

Here's a table summarizing the ADR for each city:

City State ADR Dallas TX $357 Raleigh NC $137 Nashville TN $125 Portland TN $130 Houston TX $107 Phoenix AZ $348 Atlanta GA $118 Miami FL $398 San Antonio TX $195

Occupancy Rate Comparison

Occupancy rates also show considerable variation. Nashville, TN, leads with an impressive occupancy rate of 87%, indicating strong demand for short-term rentals. Portland, OR, follows closely with an occupancy rate of 86%. In contrast, Miami, GA, has a lower occupancy rate of 63%, suggesting potential challenges in filling properties consistently. Atlanta, GA, has an occupancy rate of 67%. Dallas, TX, and Phoenix, AZ, both have an occupancy rate of 78%.

Here's a table summarizing the occupancy rates:

City State Occupancy Rate Dallas TX 78% Raleigh NC 70% Nashville TN 87% Portland OR 86% Houston TX 80% Phoenix AZ 80% Atlanta GA 67% Miami FL 63% San Antonio TX 62%

ROI Analysis

Return on Investment (ROI) is a crucial metric for evaluating the profitability of short-term rentals. Houston, TX, shows a strong ROI of 19.08%, while Phoenix, AZ, shows an ROI of 19.68%. Miami, FL, also demonstrates a high ROI at 19.60%. Dallas, TX, has an ROI of 16.13%.

Total Listings

The number of total listings can indicate the level of competition in a market. Houston, TX, has 968 total listings, while Dallas, TX, has 1039. Raleigh, NC, has significantly fewer listings at 141, suggesting a potentially less saturated market.

Cities to Watch

Based on the data, several cities stand out for their potential in the short-term rental market:

• Nashville, TN: High occupancy rate (87%) suggests strong demand.

• Phoenix, AZ: High ADR ($348) and occupancy (80%) indicate a healthy market.

• Houston, TX: Strong ROI (19.08%) makes it an attractive investment.

• Dallas, TX: High ADR ($357) and ROI (16.13%)

Conclusion

Analyzing ADR, occupancy rates, ROI, and total listings provides valuable insights for investors in the short-term rental market. By carefully considering these metrics, investors can identify locales poised for growth and make informed decisions to maximize their returns. While median prices, homes sold, inventory, and days on market are not available in this dataset, focusing on the available metrics allows for a robust comparative analysis.