Introduction
Portland, Maine, known for its stunning coastal landscapes, vibrant arts scene, and delectable seafood, has become an attractive destination for travelers seeking a taste of authentic New England charm. In recent years, the short-term rental market, primarily dominated by Airbnb, has experienced significant growth in this picturesque city. This blog post will delve into the ins and outs of the short-term rental market in Portland, ME, exploring key statistics, market trends, and insights that will help both hosts and travelers make informed decisions.
Home Values and Depreciation
To understand the dynamics of the short-term rental market in Portland, it’s essential to first look at the local real estate landscape. According to Zillow, homes in the area have depreciated by 9.30% recently, which may be a significant factor contributing to the increase in short-term rental activity.
The median home value in Portland, ME, currently stands at $531,148, making it clear that owning property in this city is a substantial financial commitment.
Short-Term Rental Inventory
Chalet, a platform specializing in vacation rental data analytics, reports that there are currently 621 active short-term rentals in Portland. This figure demonstrates the growing popularity of Airbnb and similar platforms among homeowners in the area.
Pricing and Occupancy
The average daily rate for short-term rentals in Portland, ME, is $336.90, a figure that reflects the city’s desirability as a tourist destination. Furthermore, the occupancy rate for these properties is at a healthy 63%, indicating that hosts are enjoying a consistent flow of guests.
Revenue and Yield
Chalet also estimates that short-term rentals in Portland generate an annual revenue of approximately $60,800. This translates to an average gross yield of 11.45%, which is a promising return on investment for property owners.
Property Taxes
For those considering entering the short-term rental market, it’s crucial to factor in property taxes. In Portland, the average property tax rate is 1.20%, which should be considered when evaluating the financial feasibility of hosting.
