Introduction
Charlottesville, Virginia, nestled in the foothills of the Blue Ridge Mountains, is a charming city known for its historical significance, natural beauty, and vibrant culture. It’s no wonder that this picturesque town has become a hotspot for short-term rentals, often facilitated through platforms like Airbnb. In this comprehensive guide, we’ll delve into the Airbnb (short-term) rental market in Charlottesville, examining key statistics, market trends, and essential information for both investors and travelers.
Market Overview
1. Housing Market Trends
According to Zillow, the housing market in Charlottesville experienced a 4.10% depreciation in recent times, making it a less attractive option for traditional real estate investment. The median home value stands at $467,200, which may have driven more homeowners to explore short-term rental opportunities to maximize their property’s potential.
2. Short-Term Rental Landscape
Chalet reports that Charlottesville boasts a robust short-term rental market with 665 active listings. These listings offer an average daily rate of $294, resulting in an occupancy rate of 54%. This data paints a promising picture for potential investors, with annual revenue for short-term rentals averaging $46,700.
3. Return on Investment
Investors can expect an attractive average gross yield of 10.00% in Charlottesville’s short-term rental market. This promising figure, combined with the city’s charm, is undoubtedly a draw for property investors.
4. Property Taxes
For those considering short-term rental investments, it’s essential to note that the average property tax in Charlottesville stands at 1.05%, as reported by SmartAsset. This factor should be factored into your financial calculations.
