As the largest city in Minnesota, Minneapolis has a thriving economy, a bustling arts scene, and a growing tourism industry. For homeowners looking to capitalize on this, the short-term rental market can be an attractive option.
In this guide, we’ll take a closer look at the short-term (Airbnb) rental market in Minneapolis, including occupancy rates, revenue potential, and regulations.
Supply
The most popular homes are 2-bedroom homes, comprising 46.82% of inventory. This is followed by 1 and 3-bedroom homes at 31.36% and 13.64% of the total inventory, respectively.
Property Tax
However, it’s important to note that property taxes in Minneapolis are 1.32%, slightly above the national average, which can affect the profitability of short-term rentals. SmartAsset provides a useful tool for estimating property taxes based on the value of a property, which can help homeowners calculate their expenses and profits.
Home Values and Appreciation
According to Zillow, the median home value in Minneapolis is $312,872. Additionally, homes in Minneapolis have appreciated by 1.50%. Home values and appreciation rates are important factors to consider when investing in real estate, as they can affect the potential return on investment.
Average Daily Rate
The median ADR for the market is $191.40. The Average Daily Rate is the highest for 6 bedroom homes ($120) followed by 3-bedrooms and 4 bedrooms at $119 and $116 respectively.
Airbnb Rental Regulations
Minneapolis has regulations in place that govern short-term rentals. While these regulations are generally considered investor-friendly, they do limit investors to owning only one short-term rental property. This can be a drawback for property owners looking to build a portfolio of short-term rental properties.
Median Household Income and Climate
The median household income in Minneapolis is $70,099, according to the U.S. Census Bureau. It’s important to consider the median household income of a city when investing in short-term rentals, as this can affect the demand for long-term rental properties.
Minneapolis has a continental climate, with cold winters and warm summers. The city receives an average of 53 inches of snowfall each year, which can impact the demand for short-term rentals during the winter months.
Hosts
The market is not dominated by property management firms. The largest host is Sonder with 3.24% of the total inventory and an average review of 4.58⭐️s .
Population
Minneapolis is the largest city in Minnesota, with a population of over 425,000 people. The city is known for its thriving arts scene, diverse communities, and thriving economy. In recent years, Minneapolis has also become a popular tourist destination, with a growing number of visitors each year.
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Sports Teams
Minneapolis is home to several professional sports teams, including the Minnesota Vikings (football), the Minnesota Twins (baseball), and the Minnesota Timberwolves (basketball). These teams have a strong following among local residents and visitors alike, and attending a game can be a fun and exciting way to experience the city’s sports culture.
Guests
The majority of the guests come from inside of Minnesota. 8.31% of all guests are from Minneapolis followed by Chicago with 3.01%.
Colleges
Minneapolis is also home to several notable colleges and universities, including the University of Minnesota, Augsburg University, and North Central University. These institutions are known for their academic excellence and contribute to the city’s vibrant intellectual and cultural communities.
Crime Rate
Like many cities, Minneapolis has a crime rate that is higher than the national average. According to recent statistics, the city has a crime rate of 58 per 1,000 residents. However, it’s important to note that crime rates can vary widely depending on the specific neighborhood and location within the city.
Tourism Industry
Minneapolis has a thriving tourism industry, with visitors coming from all over the world to experience the city’s unique culture and attractions. In 2019, the city welcomed over 33 million visitors, with many of them coming from nearby states like Wisconsin, Iowa, and Illinois.
Tourist Attractions
Minneapolis has several popular tourist attractions that draw visitors from near and far. Some of the most notable include the Mall of America, the Walker Art Center, the Minneapolis Sculpture Garden, and the Chain of Lakes. These attractions offer a wide range of experiences, from shopping and dining to art and nature.
Peak Season
The peak season for tourism in Minneapolis typically falls between May and September, when the weather is warm, and many outdoor events and festivals take place. However, the city is also popular during the winter months, thanks to its many indoor attractions and winter sports activities.
Conclusion
Conclusion In summary, Minneapolis has a thriving short-term rental market with consistent demand and strong revenue potential. However, investors should carefully consider the property tax rates, short-term rental regulations, home values, and appreciation rates before deciding. With the right approach, short-term rentals can be a profitable investment in this growing city.
