The Occupancy Effect: How Cities With High Short-Term Rental Demand Are Driving Local Economies

In this article, we'll be examining the impact of short-term rental demand on local economies, using city-level data to identify areas with high potential for investment. As we explore the short-term rental market, it's essential to consider the factors that contribute to a city's growth, such as its occupancy rate and return on investment (ROI) (1). According to our data, cities like Watergate, which boasts a 100% occupancy rate, and Ravensworth, with a 97% occupancy rate, are prime examples of this trend (2).

Exploring the Data

We have data on various cities with the following metrics: For more detailed information, check out our short term analysis.

City Occupancy Rate Return on Investment (ROI) % Watergate 13.88% Ravensworth 0.62% Brookside Village 4.63% Grangeville 2.27% Carolina 0% Perezville 5.12% Griffith 0.01% Hungry Horse 11.68% Bradenton 25.8% Cearfoss 12.46%

As we can see, Watergate has the highest occupancy rate at 13.88%, followed closely by Ravensworth at 0.62%. We can also see that the ROI for Watergate is significantly higher than the other cities, at 13.88% (3). This high ROI is a major indicator of a city's potential for investment, making it essential to consider factors like occupancy rates and ROI when evaluating a city's growth prospects.

Comparing Cities

For a more in-depth analysis of the short-term rental market in Utah, we recommend checking out our article on short term analysis. Additionally, our guide to short term analysis in Virginia provides valuable insights into the top-performing cities in the state.

For a city like Grangeville, the occupancy rate is 97% and the ROI is 2.27%. This is lower than Watergate but higher than Ravensworth. Cities like Perezville and Hungry Horse also show promise, with ROIs of 5.12% and 11.68%, respectively. However, it's essential to consider other factors such as median sale prices and days on market when evaluating a city for investment.

Conclusion

In conclusion, our data shows that cities with high occupancy rates and high ROIs are driving local economies. Watergate stands out as a city with a high occupancy rate and high ROI, making it a potential investment opportunity (4).

However, it's essential to consider other factors such as median sale prices and days on market when evaluating a city for investment. For more information on short-term rental markets and their impact on local economies, you can check out our article on short term analysis and our guide to short term analysis in Washington.

Additionally, it's worth noting that short-term rental regulations can be a significant factor in a city's growth prospects. For more information on this topic, we recommend checking out our article on short term analysis.