The Airbnb rental market has grown considerably in recent years, and Buffalo, NY is no exception. With an increase in supply and investor-friendly regulations, the market is ripe for investors looking to capitalize on the city’s growing tourism industry. In this blog post, we will take a closer look at the short-term rental market in Buffalo, NY, and its various data points to understand the trends and opportunities.
Overview of the Short-Term (Airbnb) Rental Market
According to Chalet, there are currently 1,164 active short-term rentals in Buffalo, NY, with an average daily rate of $181 and an occupancy rate of 51%. These Airbnb rentals generated an annual revenue of $27,800 in 2024.
Property Values and Appreciation
According to Zillow, the median home value in Buffalo, NY, is $211,615, with homes appreciating 7.50% in 2024. This is a good sign for investors as it means there is a potential for appreciation and return on investment.
Gross Yield and Property Taxes
The average gross yield for Airbnb rentals in Buffalo, NY is 13.14%, which is higher than the national average. This indicates that investors have the potential to generate a good return on their investment. However, property taxes in Buffalo, NY are relatively high at 2.63%, which should be considered when evaluating the potential profitability of a short-term rental property.
Airbnb Rental Laws and Regulations
Short-term rental regulation in Buffalo, NY is investor-friendly, which makes it easier for investors to enter the market. The city allows short-term rentals in most residential areas, as long as they are registered with the city and comply with certain safety and health standards.
Top 200 Airbnb Rental Markets
Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US
Population & Demographics
Buffalo, NY, has a population of approximately 255,284 people, with a median household income of $40,988. The city has a humid continental climate, characterized by cold winters and warm summers.
Sports Teams and Colleges
Buffalo, NY, is home to several professional sports teams, including the Buffalo Bills (NFL) and the Buffalo Sabres (NHL). The city is also home to several colleges and universities, including the State University of New York at Buffalo, Canisius College, and Buffalo State College.
Crime Rate
Buffalo, NY, has a higher crime rate than the national average, with a crime rate of 59 per 1,000 residents. However, the city has made significant progress in reducing crime in recent years.
Tourism
Buffalo, NY, is a popular tourist destination, attracting visitors from across the United States and beyond. In 2019, the city welcomed approximately 8.2 million visitors. The biggest tourist attractions in Buffalo, NY, include the Niagara Falls, Canalside, the Buffalo Zoo, and the Albright-Knox Art Gallery.
Visitors and Peak Season
Most visitors to Buffalo, NY, come from within the United States, with the majority coming from neighboring states such as Pennsylvania and Ohio. The peak season in Buffalo, NY, is during the summer months when the weather is warm and there are plenty of outdoor activities and events.
Conclusion
The Airbnb rental market in Buffalo, NY, is a lucrative opportunity for investors. With a growing demand for short-term rental properties, high gross yield, and investor-friendly regulations, the city provides an attractive environment for investors. However, high property taxes should be factored in when evaluating the profitability of short-term rental properties. As the market continues to grow, it will be interesting to see how the trends evolve and how investors can capitalize on this growing industry.
