Introduction
In recent years, the short-term rental market has become a lucrative avenue for homeowners in Knoxville, TN, seeking to capitalize on the city’s growing tourism industry. With its unique blend of Southern charm, vibrant culture, and scenic beauty, Knoxville offers an enticing destination for travelers looking for a memorable getaway. In this blog post, we’ll delve into the dynamics of the short-term rental market in Knoxville, exploring key data points, market trends, and factors driving its growth.
Understanding the Market Landscape
According to Zillow, homes in Knoxville appreciated by 12.00% in recent times, yet the median home value remains robust at $343,120. These figures indicate the resilience of Knoxville’s real estate market, despite fluctuations. Leveraging this, many homeowners have turned to platforms like Airbnb to tap into the burgeoning demand for short-term accommodations.
Key Metrics and Insights
Chalet, a leading analytics platform for short-term rentals, reports 1,051 active short-term rentals in Knoxville. These properties command an average daily rate of $197, with an occupancy rate of 54%. This translates to an impressive annual revenue of $32,300 per property, showcasing the profitability of the short-term rental market. Additionally, the average gross yield stands at a healthy 9,41%, making it an attractive investment opportunity for property owners.
Financial Considerations
It’s essential for potential investors to weigh the financial implications of short-term rentals in Knoxville. With an average property tax rate of 0.66%, according to SmartAsset, investors can anticipate manageable overhead costs, further bolstering the appeal of this investment avenue.
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Responding to Key Questions
1. Median Household Income
According to recent census data, the median household income in Knoxville, TN, is $39,593, reflecting the economic landscape of the city.
2. Climate
Knoxville boasts a temperate climate, characterized by hot summers and mild winters. This pleasant weather attracts visitors year-round, contributing to the demand for short-term accommodations.
3. Population Size
As of the latest estimates, Knoxville has a population of approximately 191,000 residents, making it a mid-sized city with ample growth potential.
4. Sports Teams
Knoxville is home to the University of Tennessee Volunteers, a prominent collegiate sports program that garners significant attention and tourism to the city.
5. Colleges
Apart from the University of Tennessee, Knoxville is also home to several other colleges and universities, fostering a vibrant academic community.
6. Crime Rate
While crime exists in any urban area, Knoxville maintains a relatively moderate crime rate compared to other cities of similar size, ensuring a safe environment for residents and visitors alike.
7. Visitor Demographics and Attractions
Visitors flock to Knoxville from various regions, drawn by its rich cultural offerings, outdoor recreational opportunities, and iconic attractions such as the Knoxville Zoo, Market Square, and the Sunsphere.
8. Peak Season
Peak tourism season in Knoxville typically coincides with the spring and fall months when mild weather and various events, including festivals and college sports, attract throngs of visitors to the city.
Conclusion
As evidenced by the data and insights provided, Knoxville, TN, presents a compelling opportunity for property owners interested in venturing into the short-term rental market. With its favorable market conditions, robust demand from visitors, and diverse attractions, Knoxville stands poised to continue its ascent as a premier destination for travelers seeking unforgettable experiences. Whether you’re a homeowner looking to maximize your property’s earning potential or an investor seeking high-yield opportunities, Knoxville offers a promising landscape to explore in the realm of short-term rentals.
