Introduction
Clearwater, FL is a coastal city located in Pinellas County, Florida, with a population of over 116,000. The city is known for its beautiful beaches, vibrant nightlife, and ample recreational opportunities, making it a popular tourist destination. The Airbnb rental market in Clearwater, FL is growing, and this article will provide an overview of the market, including important data points and factors that impact it.
Market Overview
To understand the dynamics of the short-term rental market in Clearwater, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 29.94% of inventory. This is followed by 2 and 1-bedroom homes at 26.59% and 18.17% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Clearwater experienced an appreciation of 0.06%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Clearwater have appreciated by 0.06%. The median home value in Vail is $370,500 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, Clearwater boasts a significant Airbnb rental market, with approximately 1,844 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 $272. The Average Daily Rate is the highest for 5 bedroom homes ($498) followed by 4-bedrooms and 3 bedrooms at $445 and $364 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 53% for Airbnb rentals in Vail. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Clearwater ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 7.92% in Clearwater. This figure suggests that short-term rentals in the city offer a favorable return on investment. Clearwater is ranked #42 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Clearwater earn an average of $29,349 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Clearwater is 0.81%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Top 200 Airbnb Rental Markets
Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US
Regulations
Clearwater’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.
Top Places for Airbnb in Clearwater
Clearwater’s top submarkets for Airbnb investments include areas like ZIP code 33763, which has the highest gross yield at 11% and an annual revenue of $23,991. In contrast, ZIP code 33765 offers more extensive opportunities with 108 full-time listings, but a lower gross yield of 8%.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Florida with 4.60% of the total inventory and an average review of 4.63⭐️s .
Median Household Income
The median household income in Clearwater, FL is $49,941, according to the U.S. Census Bureau. This data point is important for real estate investors to consider as it can impact demand for short-term rentals.
Climate
The climate in Clearwater, FL is warm and humid, with an average temperature of 71.2°F. The city experiences hot summers and mild winters, making it an attractive destination for tourists year-round.
Guests
The majority of the guests come from inside of Florida. 2.9% of all guests are from Tampa followed by Orlando with 2.36%.
Population and Crime Rate
Clearwater, FL has a population of over 116,000, and the crime rate is 44% higher than the national average, according to NeighborhoodScout. While this may be a concern for some potential visitors, it is important to note that the city has a strong police force and community initiatives in place to address crime.
Visitor Demographics and Tourist Attractions
Visitors to Clearwater, FL come from all over the world, with a significant portion coming from within the United States. The city’s top tourist attractions include Clearwater Beach, Pier 60, and the Clearwater Marine Aquarium, which is home to Winter the Dolphin. Clearwater, FL is also known for its sports teams, including the Philadelphia Phillies, who hold their spring training in the city.
Peak Season
The peak season in Clearwater, FL is typically between February and April, when the weather is warm and sunny. However, the city attracts visitors year-round, with summer being another popular time for tourists to visit.
In conclusion, the short-term rental market in Clearwater, FL is growing, and several factors impact it, including median home value, Airbnb rental market data, regulations, median household income, climate, population, crime rate, visitor demographics and tourist attractions, and peak season. Real estate investors looking to invest in short-term rental properties in Clearwater, FL should consider these factors to make an informed decision. With a favorable regulatory environment and strong demand from tourists, investing in short-term rental properties in Clearwater, FL can be a profitable venture. Additionally, the city’s warm and sunny climate, beautiful beaches, and ample recreational opportunities make it an attractive destination for tourists year-round.
