Galveston, TX, located in Galveston County, is a popular vacation destination for many tourists seeking sun, sand, and sea. With its beautiful beaches, numerous attractions, and rich history, it’s no surprise that the (Airbnb) short-term rental market in Galveston is thriving.
In this blog post, we will explore some key data points about the short-term rental market in Galveston, including its growth, revenue, and regulations.
Supply
The most popular homes are 3-bedroom homes, comprising 35.23% of inventory. This is followed by 2 and 4-bedroom homes at 21.59% and 19.9% of the total inventory, respectively.
Investors looking to enter the Galveston short-term rental market may be interested in the average gross yield and property tax. The average gross yield in Galveston is 14.10%, which is competitive with other vacation destinations. The average property tax in Galveston is 1.92%, which is relatively low compared to other cities and counties in Texas.
Appreciation and Median Home Value
Another significant factor in the Galveston short-term rental market is the appreciation of homes. According to Zillow, homes in Galveston depreciated by -1.00% over the past year. The median home value in Galveston is currently $343,334, which is lower than the national median home value.
Average Daily Rate
The median ADR for the market is $324.60. The Average Daily Rate is the highest for 6-bedroom homes ($364) followed by 5-bedrooms and 7 bedrooms at $363 and $353 respectively.
Airbnb Laws and Regulationss
Short-term rental regulation in Galveston is generally considered investor-friendly, with zoning restrictions in place. However, it’s important to note that specific regulations may vary depending on the location and type of property. Investors should consult with a local attorney or real estate professional to ensure compliance with all applicable laws and regulations.
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Median Household Income and Climate
In addition to the short-term rental market data, we must also consider the median household income and climate in Galveston, TX. According to the U.S. Census Bureau, the median household income in Galveston is $52,899, which is lower than the national median household income. As for the climate, Galveston experiences hot and humid summers and mild winters, with an average temperature of 77 degrees Fahrenheit.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Texas with 7.84% of the total inventory and an average review of 4.46 ⭐️s .
Population Size
According to the U.S. Census Bureau, the population size of Galveston, TX, was 49,935 as of 2020. This figure includes both permanent residents and seasonal residents who own vacation homes in the city.
Sports Teams
While Galveston does not have any major professional sports teams, it does have several recreational sports leagues and events throughout the year. For example, the city hosts the annual Sand Crab 5K/10K Run and Walk, which is a popular event for locals and visitors alike.
Guests
The majority of the guests come from inside of Texas. 16.55% of all guests are from Houston followed by Austin with 5.59%.
Colleges
Galveston is home to several colleges, including Texas A&M University at Galveston and Galveston College. Texas A&M University at Galveston is a branch campus of Texas A&M University, and it focuses on marine and maritime studies.
Crime Rate
According to NeighborhoodScout, the overall crime rate in Galveston, TX, is higher than 91% of U.S. cities. However, the city’s crime rate has been declining recently, and local law enforcement agencies are working hard to keep residents and visitors safe.
Visitor Statistics
Galveston is a popular destination for tourists from around the world, with many visitors coming from within Texas and neighboring states. According to the Galveston Island Convention and Visitors Bureau, the total number of visitors to the island was 7.5 million in 2019.
Biggest Tourist Attractions
There are many tourist attractions in Galveston, including:
- Galveston Island Historic Pleasure Pier: A family-friendly amusement park with rides, games, and food.
- Moody Gardens: An educational and entertaining complex featuring a rainforest, aquarium, and other attractions.
- The Bryan Museum: A museum that showcases the history and culture of Texas and the American West.
- Galveston Island State Park: A beautiful park that offers camping, fishing, and other outdoor activities.
- The Strand Historic District: A historic district with unique shops, restaurants, and attractions.
Peak Season
The peak season in Galveston, TX, is during the summer months, from June through August, when the weather is warm and sunny. However, the city also attracts many visitors during the fall and winter months, thanks to its mild climate and holiday events.
Conclusion
The short-term rental market in Galveston, TX, is thriving, with significant growth in the supply and appreciation of homes. Investors looking to enter the market can potentially earn a high gross yield with relatively low property taxes. Short-term rental regulations in Galveston are generally favorable to investors but with zoning restrictions. As with any investment, you must do your due diligence and consult with local professionals to ensure compliance with all applicable laws and regulations.
