As one of Ohio’s largest cities, Cleveland has been an attractive destination for both business and leisure travelers. With a strong industrial base, a growing tech scene, and several renowned tourist attractions, the city has a diverse range of visitors throughout the year. As a result, the Airbnb rental market in Cleveland has been growing steadily in recent years.
In this blog post, we’ll take a closer look at the data points that define the current state of the short-term rental market in Cleveland.
Market Overview
To understand the dynamics of the short-term rental market in Pigeon Forge, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 1-bedroom homes, comprising 26.36% of inventory. This is followed by 2 and studio homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Cleveland experienced an appreciation of 10.79%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Pigeon Forge have appreciated by 10.79%. The median home value in Cleveland is $110.963 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, Cleveland boasts a significant Airbnb rental market, with approximately 1,619 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 $161. The Average Daily Rate is the highest for 5-bedroom homes $209, followed by 4-bedrooms and 3 bedrooms at $190 and $171 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 60.21% for Airbnb rentals in Cleveland. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Cleveland ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 30.11% in Cleveland. This figure suggests that short-term rentals in the city offer a favorable return on investment. Cleveland is ranked #2 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Cleveland earn an average of $20,401 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Cleveland
Cleveland’s top submarkets for Airbnb investments include areas like ZIP code 44112, which has the highest gross yield at 43% and an annual revenue of $28,196. In contrast, ZIP code 44103 offers more extensive opportunities with 50 full-time listings, but a lower gross yield of 25%.
Home values also vary significantly, with properties ranging from $59.5K in 44104 to $232.9K in 13042, 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 Mark with 4.94% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Cleveland is 2.33%. 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 Cleveland come from Ohio and are within driving distance. 4.3% of all guests are from Cleveland followed by Columbus with 4.0%.
Regulations
Cleveland’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.
Demographics and Economy
Cleveland has a population of approximately 380,000 people. The median household income in Cleveland is $31,095, which is below the national median of $68,703. Despite this, Cleveland has a thriving economy that is anchored by several key industries, including healthcare, manufacturing, and technology. In recent years, Cleveland has also seen an influx of startup companies and entrepreneurs who are drawn to the city’s supportive business environment.
H2: Climate and Sports Cleveland experiences a humid continental climate, which means that summers are warm and humid while winters are cold and snowy. Average temperatures range from around 24°F in the winter to 81°F in the summer. This makes Cleveland a great destination for outdoor activities like hiking, biking, and water sports.
Sports are a big part of life in Cleveland, and the city is home to several professional sports teams. These include the Cleveland Browns (NFL), the Cleveland Cavaliers (NBA), and the Cleveland Indians (MLB). The teams have passionate fan bases that come out in force to support their players.
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Colleges and Crime Rate
Cleveland is also home to several colleges and universities, including Case Western Reserve University, Cleveland State University, and John Carroll University. These institutions attract students from around the country and the world, adding to the city’s diverse population.
The crime rate in Cleveland is higher than the national average, particularly in the areas of property crime and violent crime. However, the city has taken steps in recent years to improve public safety, including increasing police presence and community engagement programs.
Tourism and Attractions
Cleveland is a popular tourist destination, with visitors coming from around the world to experience the city’s rich history and cultural attractions. In 2019, the city welcomed over 19 million visitors. Some of the biggest tourist attractions in Cleveland include the Rock and Roll Hall of Fame, the Cleveland Museum of Art, and the Cleveland Metroparks Zoo.
The peak season in Cleveland is typically from June to August, when the weather is warm and many outdoor events and festivals take place. However, the city has a vibrant cultural scene year-round, with concerts, theater performances, and other events happening throughout the year.
Conclusion
The Airbnb rental market in Cleveland has been growing steadily in recent years. With over 1,619 active rentals, an average daily rate of $160.87, and an occupancy rate of 60.21%, the market shows strong potential for investors. Moreover, the relatively low median home value and the high gross yield make Cleveland an attractive market for short-term rental investors. The city’s investor-friendly regulation is another positive factor that contributes to the market’s growth. While the higher-than-average property tax should be considered, Cleveland’s short-term rental market presents a compelling opportunity for those interested in the space.
