Introduction
Grand Rapids, Michigan, known for its vibrant culture, thriving arts scene, and beautiful landscapes, has become a popular destination for both tourists and business travelers. With the rise of platforms like Airbnb, short-term rentals have become a significant part of the city’s accommodation landscape. In this blog post, we’ll delve into the short-term rental market in Grand Rapids, examining key statistics, trends, and answering some important questions about the city.
Short-Term Rental Market Statistics
Let’s start by looking at some crucial data points related to the short-term rental market in Grand Rapids:
1. Property Appreciation
According to Zillow, homes in Grand Rapids depreciated by 8.00% recently. This suggests that the housing market may be favorable for potential short-term rental investors, as lower property values can result in lower initial investment costs.
2. Median Home Value
The median home value in Grand Rapids is $267,304, as reported by Zillow. This figure provides context for potential short-term rental property prices in the area.
3. Number of Active Short-Term Rentals
Chalet reports that there are currently 407 active short-term rentals in Grand Rapids. This indicates a robust market with plenty of options for both hosts and guests.
4. Average Daily Rate
The average daily rate for short-term rentals in Grand Rapids is $190.40, according to Chalet. Hosts can use this information to set competitive pricing for their listings.
5. Occupancy Rate
Chalet also notes that the occupancy rate for short-term rentals in Grand Rapids stands at 53%. This demonstrates that there is consistent demand for such accommodations in the city.
6. Annual Revenue
The annual revenue for short-term rentals in Grand Rapids is estimated to be $30,000, according to Chalet. This data can help potential hosts assess the income potential of their properties.
7. Gross Yield
The average gross yield in Grand Rapids for short-term rentals is 11.22%, which showcases the potential return on investment for property owners.
8. Property Tax
SmartAsset reports that the average property tax in Grand Rapids is 1.31%. This is an important factor for property owners to consider when calculating their expenses.
