If you’re thinking about investing in the (Airbnb) short-term rental market in West Palm Beach, FL, there are a few key trends and data points you should know.
In this blog post, we’ll explore the latest data on the short-term rental market in West Palm Beach and what it means for investors.
Overview of the Short-Term Rental Market
West Palm Beach, located in Palm Beach County, Florida, is a popular tourist destination known for its beautiful beaches, cultural attractions, and warm weather year-round. As a result, the Airbnb rental market in West Palm Beach has seen significant growth over the past few years.
As of October 2024, according to Chalet, there are currently 1,000 active short-term rentals in West Palm Beach, with an average daily rate of $214 and an occupancy rate of 54.76%. This translates to an annual revenue of $34,941 for short-term rental owners..
Property Values and Rental Yields in West Palm Beach
As the short-term rental market in West Palm Beach continues to grow, so too does the value of properties in the area. According to Zillow, homes in West Palm Beach appreciated by 3.43% over the past year, with a median home value of $409,272. This makes West Palm Beach an attractive market for investors looking to generate a high return on their investment.
As of October 2024, in fact, the average gross yield for (Airbnb) short-term rentals in West Palm Beach is 8.54%, which is significantly higher than the national average. This means that short-term rental owners in West Palm Beach can expect to generate a strong return on their investment.
However, it’s important to keep in mind that property taxes in West Palm Beach can be relatively high. According to SmartAsset, the average property tax in West Palm Beach is 0.98%. This means that investors should factor in property taxes when calculating their potential returns.
Short-Term Rental Regulations
Investors in the short-term rental market in West Palm Beach can rest assured that the city’s regulations are investor-friendly.
Climate
The climate in West Palm Beach is subtropical, with hot and humid summers and mild winters. The average temperature in the summer months is around 90°F, while the winter months average around 75°F. The city also experiences frequent thunderstorms and occasional hurricanes during the summer and fall months.
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Population
West Palm Beach has a population of approximately 112,000 people according to US Census Bureau. The median household income in the city is $58,311, slightly higher than the national median household income.
Sports Teams
West Palm Beach is home to two major sports teams: the Miami Marlins and the Washington Nationals. Both teams hold their spring training camps in the city, drawing thousands of baseball fans to the area each year.
Colleges
West Palm Beach is home to several colleges and universities, including Palm Beach Atlantic University, Keiser University, and Lincoln College of Technology. These institutions offer a variety of undergraduate and graduate programs, as well as continuing education and professional development courses.
Crime Rate
The crime rate in West Palm Beach is higher than the national average, with a higher incidence of property crime and violent crime. However, the city has taken steps to address these issues, including increased police presence and community engagement programs.
Tourism
West Palm Beach is a popular tourist destination, drawing millions of visitors from all over the world each year. In fact, the city welcomed over 8 million visitors in 2019 alone. Many visitors come from nearby cities like Miami and Fort Lauderdale, while others come farther afield.
Tourist Attractions
West Palm Beach is home to several major tourist attractions, including:
- The Norton Museum of Art
- The Henry Morrison Flagler Museum
- The Palm Beach Zoo and Conservation Society
- CityPlace, an outdoor shopping and dining destination
- The South Florida Science Center and Aquarium
Peak Season
The peak season in West Palm Beach is typical during the winter months when temperatures are mild and snowbirds from the north flock to the city. The peak season runs from December through April, with the highest number of visitors typically occurring in February and March.
Conclusion
In conclusion, the short-term rental market in West Palm Beach, FL, is a promising investment opportunity for those looking to generate a strong return on their investment. With a high gross yield, increasing demand for short-term rentals, and investor-friendly regulations, West Palm Beach is a market worth considering. However, as with any investment, it’s important to do your due diligence and stay informed about any potential changes to regulations or other factors that could impact your investment.
