Introduce
Cape Coral, a city in Southwest Florida, has been gaining popularity as a tourist destination over the years. The city is known for its beautiful beaches, water sports, and fishing opportunities, making it an ideal location for vacationers.
Market Overview
To understand the dynamics of the short-term rental market in Cape Coral, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 49.36% of inventory. This is followed by 3 and 1-bedroom homes at 25.67% and 13.13% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Cape Coral experienced an depreciation of -5.40. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Cape Coral have depreciated by -5.40%. The median home value in Cape Coral is $378,400 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, Cape Coral boasts a significant Airbnb rental market, with approximately 3,558 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 $262. The Average Daily Rate is the highest for 5-bedroom homes ($420) followed by 4-bedrooms and 2 bedrooms at $332 and $290 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 50% for Airbnb rentals in Cape Coral. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Cape Coral ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.14% in Cape Coral. This figure suggests that short-term rentals in the city offer a favorable return on investment. Cape Coral is ranked #40 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Cape Coral earn an average of $30,788 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Regulations
Cape Coral’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.
Property Tax
According to SmartAsset, the average property tax in Cape Coral is 0.95%. 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
Population & Demographics
Cape Coral is a city located in Lee County, Florida. The city’s population is approximately 200,000, making it one of the largest cities in the county. The city is known for its many waterways, which have earned it the nickname “Waterfront Wonderland.” Additionally, the city boasts a thriving tourism industry, making it a popular destination for travelers from all over the world.
According to the United States Census Bureau, the median household income in Cape Coral, FL is $62,664. This figure is higher than the median income for the state of Florida, which is $55,660.
Hosts
The market is dominated by property management firms. The largest host is Roelens with 4.70% of the total inventory and an average review of 4.67 ⭐️s .
Climate
Cape Coral has a tropical climate, with hot summers and mild winters. The city experiences high humidity throughout the year, with an average of 54 inches of rainfall annually.
Sports and Education
Cape Coral is home to a variety of sports teams, including the Florida Tarpons, a professional indoor football team, and the Fort Myers Miracle, a minor league baseball team.
While there are no colleges or universities located within the city limits of Cape Coral, several institutions are located nearby. These include Florida Gulf Coast University, Hodges University, and Edison State College.
Guests
The majority of the guests come from inside of Florida. 4.35% of all guests are from Miami followed by Cape Coral with 1.53%.
Crime Rates and Tourism
According to NeighborhoodScout, the crime rate in Cape Coral is lower than the national average. The city has a low crime rate, making it a safe destination for tourists.
Cape Coral attracts visitors from all over the world. The city’s biggest markets for tourism are Canada, Germany, and the United Kingdom. In total, Cape Coral sees approximately 1.3 million visitors each year.
Tourist Attractions and Peak Season
Cape Coral is home to several popular tourist attractions. These include the Sun Splash Family Waterpark, Cape Coral Historical Museum, and the Four Mile Cove Ecological Preserve.
The peak season for tourism in Cape Coral is from December to April. During this time, the city sees an influx of visitors seeking warm weather and sunny skies.
Conclusion
The short-term rental market in Cape Coral, FL, is a growing industry that presents a great opportunity for real estate investors. With a steady increase in short-term rental supply and high occupancy rates, investors can expect good returns on their investment. Moreover, the city’s low property tax rates and investor-friendly regulations make it an attractive location for property owners. As a result, it is no surprise that Cape Coral is becoming a popular destination for short-term rental investors.
