Introduction
Burlington, Vermont, nestled on the eastern shore of Lake Champlain, boasts a vibrant culture, stunning natural scenery, and a robust economy. With its charming streets, rich history, and plethora of outdoor activities, Burlington attracts visitors from all over the world. This influx of tourists has spurred the growth of the short-term rental market, particularly through platforms like Airbnb. In this blog post, we delve into the dynamics of Burlington’s short-term rental market, exploring key metrics, trends, and factors influencing its landscape.
Overview of Burlington’s Short-term Rental Market
According to data from Chalet, Burlington currently boasts 300 active short-term rental listings, with an average daily rate of $237.20. The occupancy rate stands at 64%, contributing to an annual revenue of approximately $45,900 per rental unit. However, it’s essential to consider the broader economic context of Burlington to understand these figures fully.
Economic Context
In recent years, Burlington’s housing market has experienced modest depreciation, with homes depreciating by 4.40% according to Zillow. Despite this, the median home value remains relatively high at $496,998, indicating a stable and somewhat resilient housing market. However, the average gross yield for short-term rental properties is 9.24%, suggesting a potential gap between rental income and property value.
Factor in the average property tax rate of 2.13%, and property owners must carefully evaluate the financial viability of short-term rentals in Burlington.
