The Sunny Side of the Equation: How ADR and Occupancy Vary by Seasonal Destination
Short-term rental performance patterns in top vacation destinations are crucial for investors to understand. Let's dive into the data and explore how Average Daily Rate (ADR) and occupancy rates vary across these cities.
According to our data, occupancy analysis shows that Phoenix, AZ has an occupancy rate of 78%, while Denver, CO boasts an occupancy rate of 87%.
In terms of ADR, Phoenix, AZ averages $120 per night, while Denver, CO averages $365 per night. This significant difference highlights the importance of considering local market conditions when investing in short-term rentals.
Let's take a closer look at the data for Phoenix, AZ. With a median sale price of $300,000 and homes staying on the market for 30 days, this city offers a unique opportunity for investors.
- Mean ADR: $120
- Mean Occupancy: 78%
- Total Listings: 201
- Estimated ROI: 13.92%
- Estimated Cap Rate: 7.94%
Now, let's compare this to another city, Denver, CO, which has a median sale price of $N/A and homes staying on the market for N/A days. The ADR for Denver, CO is $365, while the occupancy rate is 87%.
According to our data, vacation home hotspots like Austin, TX, have an occupancy rate of 88% and an ADR of $168. This highlights the potential for high returns in the right market.
When comparing real estate markets, it's essential to consider how analysis and current market trends. By doing so, investors can make informed decisions and maximize their returns.
So, which cities offer the best opportunities for short-term rental investors? Let's take a look at the data for some of the top vacation destinations:
City | State | Mean ADR | Mean Occupancy | Total Listings | Estimated ROI | Estimated Cap Rate
| Phoenix |
AZ |
$120 |
78% |
201 |
13.92% |
7.94% |
| Dallas |
TX |
$226 |
63% |
610 |
5.96% |
10.98% |
| Austin |
TX |
$168 |
88% |
897 |
7.65% |
9.82% |
| Atlanta |
GA |
$164 |
85% |
88 |
17.01% |
6.23% |
| Denver |
CO |
$365 |
87% |
1023 |
8.98% |
5.06% |
By analyzing the data for these cities, investors can make informed decisions and maximize their returns in the short-term rental market.
