Introduction
The city of Birmingham, Alabama, known for its rich history and vibrant culture, has been witnessing a significant growth in its short-term rental market. Whether you’re a property owner looking to invest or a traveler seeking accommodation, understanding the dynamics of this market is crucial. In this comprehensive guide, we’ll delve into the short-term rental landscape in Birmingham, AL, using both “Airbnb” and “Short-term” interchangeably, to ensure you have all the information you need.
Birmingham’s Real Estate Landscape
Before we dive into the world of short-term rentals, let’s get a grasp of Birmingham’s real estate scene. According to Zillow, homes in Birmingham have depreciated by -4.90%, making it an attractive destination for potential property investors. The median home value in the city is $126,949, offering a wide range of options for property buyers and short-term rental hosts.
Short-Term Rental Statistics
Supply and Demand
As of the latest data from Chalet, Birmingham boasts a robust short-term rental market with approximately 1,335 active listings. This indicates a thriving ecosystem of hosts and properties available for travelers seeking a temporary home away from home.
Pricing and Occupancy
The average daily rate for short-term rentals in Birmingham stands at $178.20, making it an affordable option for travelers of all budgets. The occupancy rate, which is currently at 52%, indicates a healthy demand for short-term rentals in the city. Hosts can expect an annual revenue of $28,400, making this market financially appealing.
Return on Investment
Investors and property owners will be pleased to know that Birmingham offers an average gross yield of 22.37%, making it a potentially lucrative market. Additionally, the average property tax is a reasonable 0.32%, adding to the financial attractiveness of short-term rental investments.
