Introduction
Santa Cruz, California, with its stunning coastline, vibrant culture, and beautiful natural surroundings, is a highly sought-after destination for travelers. The city’s Airbnb and short-term rental market has been growing steadily, making it an attractive option for homeowners looking to capitalize on the demand for vacation accommodations. In this blog post, we will delve into the dynamics of the short-term rental market in Santa Cruz, covering everything from market statistics to local attractions.
Market Statistics
Let’s begin by examining some key statistics that provide insights into the short-term rental market in Santa Cruz:
Home Value Trends
According to Zillow, the median home value in Santa Cruz stands at an impressive $1,331,113. It’s important to note that homes have appreciated by 3.10% recently, suggesting a potential shift in the real estate market.
Short-Term Rental Supply
Chalet reports that there are currently 563 active short-term rentals in Santa Cruz, showcasing the popularity of this market among homeowners.
Rental Rates and Occupancy
The average daily rate for these short-term rentals is $425.90, with an impressive occupancy rate of 61%. This leads to an annual revenue of approximately $76,200 for hosts in Santa Cruz, CA.
Investment Potential
The average gross yield for short-term rentals in Santa Cruz is around 5.72%, making it an attractive option for investors.
Property Taxes
Homeowners should also consider property taxes, which, on average, amount to 0.82% of the property’s value, according to SmartAsset.
Demographics and Local Insights
Before diving deeper into the short-term rental market, let’s explore some relevant information about Santa Cruz:
