Airbnb Data on 2,854 Active Vacations Rental in South Padre Island

In this guide, we will explore the current state of the Airbnb rental market in South Padre Island, examining key statistics and trends, and providing insights for potential investors.

Market Overview

To gain a comprehensive understanding of the short-term rental market in South Padre Island, let’s examine some key data points:

Property Appreciation and Value

According to Zillow, homes in South Padre Island have appreciated by 2.70%, indicating a positive trend in property values. The median home value in the area is $443,896, demonstrating the potential for profitable real estate investments.

Short-Term (Airbnb) Rental Supply and Performance

Chalet reports that South Padre Island currently has 2,854 active short-term rentals, showcasing a healthy inventory for potential investors. The average daily rate for these rentals is $345.40, indicating the income potential for property owners. Additionally, the occupancy rate stands at 54%, suggesting a steady stream of rental bookings.

Revenue and Yield

The annual revenue for Airbnb rentals in South Padre Island is estimated at $54,900, providing an attractive income opportunity for property owners. The average gross yield, which measures the return on investment, is 12.37%. This figure indicates that investors can expect a solid return on their property purchases.

The Local Context

To fully understand the investment potential of South Padre Island’s short-term rental market, it is important to consider various aspects of the local environment.

Median Household Income

The median household income in South Padre Island is an important indicator of the residents’ economic status and potential demand for short-term rentals. Unfortunately, specific data on median household income for South Padre Island is not available in the provided information.

Climate

South Padre Island enjoys a tropical climate, with warm temperatures throughout the year. The area experiences mild winters and hot summers, making it an attractive destination for tourists seeking to escape colder climates.

Population Size

South Padre Island has a relatively small population, with approximately 2,816 residents as of the knowledge cutoff in 2021. However, during peak tourist seasons, the population swells significantly, resulting in increased demand for short-term rentals.

Sports Teams and Colleges

South Padre Island does not have any major professional sports teams or colleges based within its boundaries.

Crime Rate

While crime rates can fluctuate over time, South Padre Island is generally considered a safe destination for visitors. Local law enforcement and security measures prioritize the safety and well-being of residents and tourists.

Visitor Demographics and Attractions

South Padre Island attracts visitors from various locations, with many coming from neighboring states such as Texas, Louisiana, and Oklahoma. Additionally, due to its proximity to Mexico, the island also attracts international visitors.

Some of the biggest tourist attractions in South Padre Island include:

1. Beautiful Beaches: South Padre Island boasts pristine sandy beaches, making it an ideal spot for sunbathing, swimming, and beachside activities.
2. Water Sports and Activities: Visitors can enjoy a wide range of water-based activities, including surfing, jet skiing, parasailing, and fishing charters.
3. Schlitterbahn Waterpark: This expansive water park offers thrilling water slides, lazy rivers, and various attractions for families and adventure seekers.
4. Dolphin Watching: South Padre Island provides opportunities to observe dolphins in their natural habitat through guided tours and boat trips.
5. Sea Turtle, Inc.: This conservation organization focuses on the rehabilitation and protection of sea turtles. Visitors can learn about these fascinating creatures and their conservation efforts.

Peak Season

The peak season in South Padre Island typically aligns with the summer months, from June to August. During this time, families and vacationers flock to the island to enjoy its sunny weather and vibrant atmosphere. Spring break, which usually occurs in March, is another popular period for visitors, particularly college students.

Conclusion

The Airbnb rental market in South Padre Island, TX, presents a promising investment opportunity for individuals looking to capitalize on the island’s thriving tourism industry. With appreciating home values, solid rental revenue, and an investor-friendly regulatory environment, the market offers attractive prospects for property owners. While considering the local context, such as climate, population size, and visitor demographics, investors can make informed decisions when venturing into the South Padre Island short-term rental market. Whether it’s the stunning beaches, exciting water sports, or family-friendly attractions, South Padre Island continues to captivate visitors and sustain a robust short-term rental market.