Introduction
Charlotte, North Carolina, is a vibrant city with a booming short-term (Airbnb) rental market. In recent years, the city has experienced significant growth in the number of active short-term rentals, attracting both local and out-of-town visitors.
This guide post aims to provide a comprehensive overview of the Airbnb rental market in Charlotte, analyzing key data points and discussing the city’s favorable investor-friendly regulations. Additionally, we will address various aspects of Charlotte, including its climate, population, sports teams, colleges, crime rate, visitor demographics, popular attractions, and peak season. So, let’s dive in!
Market Overview
To understand the dynamics of the short-term rental market in Charlotte, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 2-bedroom homes, comprising 26.36% of inventory. This is followed by 1 and 3-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Charlotte experienced an appreciation of 2.03%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Charlotte have appreciated by 2.03%. The median home value in Charlotte is $393,600 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Charlotte boasts a significant Airbnb rental market, with approximately 3,570 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $179. The Average Daily Rate is the highest for 5-bedroom homes $295, followed by 4-bedrooms and 3 bedrooms at $271 and $225 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 57.98% for Airbnb rentals in Charlotte. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Charlotte ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.57% in Charlotte. This figure suggests that short-term rentals in the city offer a favorable return on investment. Charlotte is ranked #71 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Charlotte earn an average of $24,339 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Hosts
The market is not dominated by property management firms. The largest host is Candace with 4.95% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Charlotte is 0.90%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Charlotte come from North Carolina and are within driving distance. 8.20% of all guests are from Charlotte followed by Raleigh with 3.60%.
Regulations
Charlotte’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Charlotte, NC: Beyond the Short-Term (Airbnb) Rental Market
Median Household Income
The median household income in Charlotte, NC, is an important indicator of the city’s economic well-being. While the exact figure may vary over time, as of the latest available data, the median household income in Charlotte is approximately [insert current median household income figure]. This data point provides insights into the financial capacity of local residents and their potential demand for Airbnb rental accommodations.
Climate
Charlotte, NC, experiences a humid subtropical climate. The city enjoys relatively mild winters, with average temperatures ranging from the mid-30s to mid-50s Fahrenheit (2-12 degrees Celsius) in January. Summers are hot and humid, with average temperatures ranging from the low 70s to mid-90s Fahrenheit (21-35 degrees Celsius) in July. Charlotte receives a moderate amount of rainfall throughout the year, making it important for short-term rental owners to consider seasonal fluctuations and weather patterns.
Population Size
As of the latest data, the population of Charlotte, NC, stands at approximately [insert current population figure]. With a steadily growing population, Charlotte offers a large pool of potential visitors for short-term rentals. The city’s thriving economy, cultural attractions, and diverse job market attract both residents and tourists alike.
Sports Teams
Charlotte boasts a vibrant sports scene, with several professional teams representing the city. Some of the notable sports teams based in Charlotte, NC, include:
- Charlotte Hornets (NBA): The city’s professional basketball team.
- Carolina Panthers (NFL): Charlotte’s football team, competing in the National Football League.
- Charlotte Checkers (AHL): A professional ice hockey team, affiliated with the NHL’s Florida Panthers.
These teams contribute to the city’s sports culture and attract fans from near and far, potentially increasing the demand for short-term (Airbnb) rentals during sporting events.
Colleges in Charlotte
Charlotte is home to several renowned educational institutions, providing a steady flow of students, faculty, and visiting academics. Some of the colleges located in Charlotte, NC, include:
- University of North Carolina at Charlotte (UNC Charlotte): A public research university with a diverse student body and a range of academic programs.
- Queens University of Charlotte: A private university offering undergraduate and graduate programs across various disciplines.
- Johnson & Wales University: A private career-focused university known for its culinary arts and hospitality programs.
The presence of these colleges contributes to the demand for short-term rental accommodations, as visitors and families often seek temporary housing during academic events and visits.
Crime Rate
While crime rates can fluctuate, it’s important to be aware of the safety and security landscape when considering investment opportunities. Charlotte, like any other major city, experiences its share of crime. It’s advisable for investors to conduct thorough research on crime statistics and consult local authorities to make informed decisions regarding property investments and management.
Visitor Demographics and Origin
Charlotte attracts visitors from various locations, both domestically and internationally. While specific data on visitor demographics and origin may not be available for the purpose of this blog post, it’s safe to assume that the city’s economic growth, cultural attractions, and sporting events appeal to a diverse range of travelers. Understanding visitor demographics can help short-term (Airbnb) rental owners tailor their offerings to target specific markets effectively.
Tourist Attractions
Charlotte offers an array of attractions that draw visitors year-round. Some of the city’s biggest tourist attractions include:
- NASCAR Hall of Fame: A museum celebrating the history of stock car racing and the drivers who have contributed to the sport.
- U.S. National Whitewater Center: An outdoor recreational facility offering whitewater rafting, kayaking, rock climbing, and hiking.
- Discovery Place Science: A hands-on science museum that engages visitors of all ages with interactive exhibits and educational programs.
- The Mint Museum: A comprehensive art museum with collections ranging from ancient artifacts to contemporary works.
- Carowinds: A popular amusement park featuring thrilling rides, live entertainment, and a water park.
These attractions, along with others, make Charlotte an appealing destination for leisure and business travelers, increasing the demand for short-term rental accommodations.
Peak Season in Charlotte
The peak season in Charlotte, NC, generally aligns with the warmer months, particularly from late spring to early fall. The pleasant weather, outdoor events, and festivals during this period attract a significant number of tourists. However, it’s important to note that peak seasons can vary depending on specific events, holidays, and local factors. Monitoring local calendars, event schedules, and historical data can help short-term rental owners maximize their occupancy and revenue during peak periods.
Conclusion
Charlotte, NC, offers an exciting and promising Airbnb rental market for investors. With a growing number of active rentals, healthy appreciation rates, and favorable regulations, the city presents opportunities for financial success. Additionally, Charlotte’s population, economic growth, sports teams, colleges, and tourist attractions contribute to the demand for temporary accommodations. By considering key data points, understanding the local climate, and tailoring offerings to target markets, investors can thrive in Charlotte’s vibrant short-term rental market. So, whether you’re a seasoned investor or looking to enter the industry, Charlotte holds immense potential for your short-term rental endeavors.
