Introduction
Taos, New Mexico, known for its stunning landscapes and rich cultural heritage, has become a sought-after destination for travelers seeking a unique experience. The short-term rental market, dominated by platforms like Airbnb, has played a significant role in shaping the local economy. In this blog post, we will delve into the dynamics of Taos’s short-term rental market, analyzing key data points and addressing questions about the region’s demographics, climate, and more.
Market Overview
Property Values and Depreciation
According to Zillow, Taos has seen a slight depreciation in home values, with a decline of -7.60%. This may be attributed to the increasing popularity of short-term rentals, which can sometimes lead to a shift in the real estate market.
Median Home Value
The median home value in Taos stands at $430,618, indicating that the housing market is relatively upscale. This figure is essential for understanding the economic landscape and the potential profitability of short-term rentals.
Short-Term Rentals
As of the latest data from Chalet, Taos boasts a total of 446 active short-term rentals, reflecting the high demand for lodging in the area. These properties are listed on platforms like Airbnb, catering to tourists seeking comfortable accommodations.
Rental Performance Metrics
- Average Daily Rate: Short-term rentals in Taos command an average daily rate of $240.70, making it an attractive prospect for property owners looking to generate income.
- Occupancy Rate: The occupancy rate in Taos hovers at a healthy 61%, indicating consistent demand throughout the year.
- Annual Revenue: Short-term rentals in Taos generate an annual revenue of approximately $46,000, showcasing their potential for profitability.
- Gross Yield: With an average gross yield of 10.68%, Taos’s short-term rental market offers an attractive return on investment for property owners.
Property Taxes
According to SmartAsset, the average property tax rate in Taos is 0.86%. Property tax rates are an essential consideration for property investors, impacting their overall profitability.
