(Gross Yields from 13.47%, 55% Occupancy Rate)
Quick Facts
Population: – City – 1,953,000 (2020)
- The largest city is Fort Lauderdale with a population of 189,000.
- The surge in demand for homes can be due to low-interest rates and residents turning to renting rather than buying after the economic crash in the 2000s. However, residents have begun to shift back to owning homes in recent years, as opposed to the rental trend since the crash. COVID and the “Work From Home” culture have brought an influx of buyers from the Northeast.
- The population is expected to grow at 3.3% from 2020 to 2045.
- Fort Lauderdale-Hollywood International Airport (FLL), is ranked 18th in the U.S. in total passenger traffic and 10th in international traffic. With more than 350 average daily flights, FLL offers non-stop service to more than 85 U.S. cities and global connectivity to more than 62 international destinations in 33 countries.
Cost of Living: Payscale ranks the cost of living in Fort Lauderdale to be 16% higher than the national average. Fort Lauderdale has 51% higher housing expenses than the national average.
Active Rentals
There are 16120 active rentals in Broward County. Almost 69% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 1321 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Fort Lauderdale is $162 dollars.
Throughout the year, the rate fluctuates by $40 from that average with the highest Average Daily in January ($202) and the lowest in February ($136).
Occupancy Rate
Occupancy Rates in Broward County were high in the winter through this spring. The Occupancy Rate at an annual level is 56%.
The lowest occupancy rate was in October (33%) and the highest was in March (95%). Drop-in occupancy rates in the Spring of 2021 can be partially explained by a surge in COVID cases.
High-Performance Properties
Chalet’s research shows that studios have the highest percentage of homes in high yield territory* (40.91%) therefore could be a good strategy for this market.
Chalet considers properties with a gross yield greater than 15% as high yield properties. Gross yield equals Gross Income/Purchase Price
Demand
The majority of the Broward County short-term rental guests are domestic guests from the United States, though March is when the presence of international guests is most noticeable.
International guests in March barely cross the 8% threshold of total guests. The majority of international guests visit from Canada, Argentina, Germany, Brazil, and Colombia.
The majority of Broward County guests come from U.S. cities located within driving distance. We expect drive-to locations/cities to continue to do well in the post-covid world.
Other Facts
The average property tax rate is 0.83% which is double the state average according to SmartAsset. It is 0.27% greater than the national average of 1.1%.
According to Zillow, homes in Broward County appreciated 29.2% year-over-year (YoY) and the median home price for active listings was $886,167 (as of June 2022).
Homes in Broward County average 38 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Fort Lauderdale fell to 2.5% in April of 2022, which is lower than the national average of 3.6%.
Short-Term Rental Regulation
Some areas of Broward County are very friendly to short-term rentals.
- Short-term rentals in Fort Lauderdale must be registered with the city’s program on an annual basis. The registration fee is $350 and is outlined below.
- In addition, renewals for owner-occupied vacation rentals are $80 or $160 for non-owner-occupied vacation rentals.
- A Vacation Rental must be registered annually on or before September 30th of each year.
See Chalet’s detailed analysis of short-term rental regulation in Greater Fort Lauderdale.
