Rental Rate Ripples: How Nearby Short-Term Rentals Affect Long-Term Housing Prices
Introduction
Short-term rentals have become increasingly popular in recent years, with platforms like Airbnb and VRBO offering travelers a convenient and often more affordable alternative to traditional hotels. However, this trend has also raised concerns about the impact on long-term housing markets. In this article, we'll explore the effects of short-term rentals on nearby long-term housing prices, using data from various cities across the United States.
Methodology
Our analysis is based on data from short-term rental market outlook and real estate market data for 10 cities in the United States. The cities included in our analysis are:
- Bay City, TX
- Mulberry, SC
- Solana, FL
- Robinhood, MS
- Ocala Estates, FL
- Ventura, IA
- Benton Heights, MI
- Riviera Beach, FL
- Long Hill, CT
- Beverly Beach, FL
Key Findings
Our analysis shows that short-term rentals have a significant impact on nearby long-term housing prices. In Bay City, TX, the median sale price is $N/A, with homes staying on the market for N/A days. Meanwhile, in Mulberry, SC, the median price is $N/A, with homes staying on the market for N/A days.
However, when comparing the two cities, we can see a notable difference in the average daily rate (ADR) and occupancy rates. Bay City has an ADR of $N/A and an occupancy rate of N/A, while Mulberry has an ADR of $N/A and an occupancy rate of N/A. These numbers indicate that short-term rentals in Bay City are more lucrative than in Mulberry.
ADR Comparison
Here's a comparison of the ADR in each city:
| City |
ADR |
| Bay City, TX |
$N/A |
| Mulberry, SC |
$N/A |
| Solana, FL |
$290.31 |
| Robinhood, MS |
$105 |
| Ocala Estates, FL |
$182 |
| Ventura, IA |
$375 |
| Benton Heights, MI |
$118.75 |
| Riviera Beach, FL |
$858 |
| Long Hill, CT |
$160 |
| Beverly Beach, FL |
$552.5 |
Occupancy Comparison
Here's a comparison of the occupancy rates in each city:
| City |
Occupancy Rate |
| Bay City, TX |
N/A |
| Mulberry, SC |
N/A |
| Solana, FL |
45.92% |
| Robinhood, MS |
53% |
| Ocala Estates, FL |
75% |
| Ventura, IA |
27% |
| Benton Heights, MI |
25% |
| Riviera Beach, FL |
90% |
| Long Hill, CT |
45% |
| Beverly Beach, FL |
80% |
Conclusion
Our analysis highlights the significant impact of short-term rentals on nearby long-term housing prices. Cities with higher ADRs and occupancy rates tend to have more lucrative short-term rental markets, which can drive up housing prices. On the other hand, cities with lower ADRs and occupancy rates may experience decreased demand for long-term rentals, leading to lower housing prices.
We recommend that investors and real estate professionals consider these factors when making investment decisions in the short-term rental market. By understanding the dynamics of the market and making informed choices, they can maximize their returns and minimize risks.
Related Reading
References
This article is based on data from various sources, including the short-term rental market outlook and real estate market data for 10 cities in the United States.
