Introduction
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.
Market Overview
To understand the dynamics of the short-term rental market in Buffalo, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 30.15% of inventory. This is followed by 2 and 1-bedroom homes at 24.62% and 23.28% of the total inventory, respectively.
Homes Appreciation
As of November 2024, according to Zillow, homes in Buffalo experienced an appreciation of 6.18%. This data indicates a significant decrease in property values.
Median Home Value
As of November of 2024, Homes in San Antonio have depreciated by 6.18%. The median home value in Buffalo is $226,300 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 November 2024, Buffalo boasts a significant Airbnb rental market, with approximately 727 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 $154. The Average Daily Rate is the highest for 5-bedroom homes ($290) followed by 4-bedrooms and 3 bedrooms at $260 and $220 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 56% for Airbnb rentals in San Antonio. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in San Antonio ?
As of November 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 13.80% in Buffalo. This figure suggests that short-term rentals in the city offer a favorable return on investment. Buffalo is ranked #28 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Buffalo earn an average of $31,193 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 Buffalo is 2.43%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Buffalo’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 Buffalo
Minneapolis top submarkets for Airbnb investments include areas like ZIP code 14211, which has the highest gross yield at 25% and an annual revenue of $24,815. In contrast, ZIP code 14204 offers more extensive opportunities with 51 full-time listings, but a lower gross yield of 14%.
Home values also vary significantly, with properties ranging from $250.4K in 14223 to $100K in 14211, making each submarket unique in terms of investment potential and entry cost.
Hosts
The market is not dominated by property management firms. The largest host is Harjot with 4.92% of the total inventory and an average review of 4.94 ⭐️s .
Top 200 Airbnb Rental Markets
Instantly compare 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.
Guests
The majority of the guests come from outside of New York. 8.83% of all guests are from Toronto followed by New York with 3.55%.
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.
