As one of Ohio’s largest cities, Cleveland has been an attractive destination for both business and leisure travelers. With a strong industrial base, a growing tech scene, and several renowned tourist attractions, the city has a diverse range of visitors throughout the year. As a result, the Airbnb rental market in Cleveland has been growing steadily in recent years.
In this blog post, we’ll take a closer look at the data points that define the current state of the short-term rental market in Cleveland.
Market Size and Performance
According to Chalet, there are currently 2,126 active short-term (Airbnb) rentals in Cleveland. These rentals have an average daily rate of $160.80. The occupancy rate for Airbnb rentals in Cleveland is 50%, which means that on average, rentals are occupied for about 20 days in a month. This occupancy rate is a good indicator of demand for short-term rentals in the city.
The annual revenue for Airbnb rentals in Cleveland is $24,500. While this number may seem low compared to other cities, it’s important to note that Cleveland has a relatively low median home value of $100,734. As a result, investors can enter the market with relatively low capital requirements. Moreover, the average gross yield for short-term rentals in Cleveland is 24.32%, which is above the national average of 20.54%. This metric measures the return on investment (ROI) for short-term rentals, which is a good indicator of profitability.
Market Trends and Regulation
Airbnb rentals have been growing in popularity in Cleveland in recent years. In Q1 of 2023, there was a 20.00% increase in the supply of short-term rentals compared to the previous year. This trend is expected to continue as more investors recognize the potential of the market. In addition, homes in Cleveland appreciated by 5.80% according to Zillow, which is another positive sign for investors.
One of the key reasons why the short-term rental market in Cleveland has been attractive to investors is the investor-friendly regulation. The city has minimal regulations for short-term rentals, which means that investors can enter the market with fewer restrictions. However, it’s important to note that the average property tax in Cleveland is 2.51%, which is higher than the national average. Investors should factor in this cost when considering their ROI.
Demographics and Economy
Cleveland has a population of approximately 380,000 people. The median household income in Cleveland is $31,095, which is below the national median of $68,703. Despite this, Cleveland has a thriving economy that is anchored by several key industries, including healthcare, manufacturing, and technology. In recent years, Cleveland has also seen an influx of startup companies and entrepreneurs who are drawn to the city’s supportive business environment.
H2: Climate and Sports Cleveland experiences a humid continental climate, which means that summers are warm and humid while winters are cold and snowy. Average temperatures range from around 24°F in the winter to 81°F in the summer. This makes Cleveland a great destination for outdoor activities like hiking, biking, and water sports.
Sports are a big part of life in Cleveland, and the city is home to several professional sports teams. These include the Cleveland Browns (NFL), the Cleveland Cavaliers (NBA), and the Cleveland Indians (MLB). The teams have passionate fan bases that come out in force to support their players.
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Colleges and Crime Rate
Cleveland is also home to several colleges and universities, including Case Western Reserve University, Cleveland State University, and John Carroll University. These institutions attract students from around the country and the world, adding to the city’s diverse population.
The crime rate in Cleveland is higher than the national average, particularly in the areas of property crime and violent crime. However, the city has taken steps in recent years to improve public safety, including increasing police presence and community engagement programs.
Tourism and Attractions
Cleveland is a popular tourist destination, with visitors coming from around the world to experience the city’s rich history and cultural attractions. In 2019, the city welcomed over 19 million visitors. Some of the biggest tourist attractions in Cleveland include the Rock and Roll Hall of Fame, the Cleveland Museum of Art, and the Cleveland Metroparks Zoo.
The peak season in Cleveland is typically from June to August, when the weather is warm and many outdoor events and festivals take place. However, the city has a vibrant cultural scene year-round, with concerts, theater performances, and other events happening throughout the year.
Conclusion
The Airbnb rental market in Cleveland has been growing steadily in recent years. With over 1899 active rentals, an average daily rate of $158.30, and an occupancy rate of 51%, the market shows strong potential for investors. Moreover, the relatively low median home value and the high gross yield make Cleveland an attractive market for short-term rental investors. The city’s investor-friendly regulation is another positive factor that contributes to the market’s growth. While the higher-than-average property tax should be considered, Cleveland’s short-term rental market presents a compelling opportunity for those interested in the space.
