Introduction
Fort Lauderdale, FL, known as the “Venice of America” due to its extensive network of canals, is a popular destination for tourists seeking sun, sand, and vibrant city life.
With its beautiful beaches, thriving arts and culture scene, and a variety of recreational activities, Fort Lauderdale offers a unique experience to its visitors. In recent years, the city has witnessed significant growth in the (Airbnb) short-term rental market, providing an attractive investment opportunity for homeowners and investors alike.
In this guide post, we will delve into the current state of the short-term rental market in Fort Lauderdale, exploring key data points and shedding light on the market’s dynamics.
Market Overview
To understand the dynamics of the short-term rental market in Fort Lauderdale, let’s delve into some key statistics and figures.
Home Value and Depreciation
According to Zillow, the median home value in Fort Lauderdale stands at an impressive $512,196 However, it’s worth noting that homes in the area experienced a slight depreciation of -0.12% over a certain period. This indicates a potential market correction or a fluctuation in home values.
Occupancy Rate
This substantial number demonstrates the city’s attractiveness for homeowners and investors looking to capitalize on the growing tourism market. Additionally, the occupancy rate of 56% signifies a healthy demand for short-term rentals.
Average Daily Rate
The median ADR for the market is $341. The Average Daily Rate is the highest for 7-bedroom homes ($645) followed by 6-bedrooms and 5 bedrooms at $640 and $594 respectively.
Revenue
This figure suggests that property owners can command a lucrative income from their rentals. With an annual revenue of $48,084, investors can potentially generate a steady stream of income from short-term rentals in the area.
Supply Analysis
As per Chalet, there are currently 4,686 active (Airbnb) short-term rentals in Fort Lauderdale. The most popular homes are 1-bedroom homes, comprising 28.26% of inventory. This is followed by 2 and 3-bedroom homes at 22.16% and 20.14% of the total inventory, respectively.
Gross Yield
This surge in supply indicates a growing market and heightened investor interest. The average gross yield of 9.31% further underlines the financial viability of investing in short-term rentals in the city.
Host Info
The market is dominated by property management firms. The largest host is RoomPicks with 5.52% of the total inventory and an average review of 4.67 ⭐️s .
Property Tax and Regulation
Property owners should consider the average property tax rate, which stands at 1.20% in Fort Lauderdale, as reported by SmartAsset. This information is crucial for calculating potential expenses and determining the profitability of short-term rentals.
Moreover, the city’s short-term rental regulation is investor-friendly, with varying zoning regulations and limitations. It is essential for investors to familiarize themselves with the local regulations to ensure compliance and avoid any legal issues.
Guests
The majority of the guests come from outside of Florida. 4.56% of all guests are from New York followed by Fort Lauderdale with 2.93%.
Answering Key Questions
Median Household Income, Climate, and Population Size
To better understand the local context, let’s address some important questions about Fort Lauderdale.
