Introduction
Honolulu, Hawaii, is a captivating destination known for its stunning landscapes, vibrant culture, and warm climate. As one of the most sought-after vacation spots, it’s no surprise that the short-term rental market, including Airbnb, thrives in this paradise. In this blog post, we will delve into the current state of the short-term rental market in Honolulu, HI, exploring key data points and answering pertinent questions.
Market Insights
Property Trends
According to Zillow, the median home value in Honolulu, HI is $787,369. However, homeowners should be aware that homes in Honolulu have depreciated by -1.00% in recent times. This trend may be driven by the increasing popularity of short-term rentals, impacting the local housing market.
Airbnb and Short-Term Rentals
Chalet, a leading data provider for short-term rentals, reports that Honolulu boasts a staggering 7,525 active short-term rentals. The average daily rate for these rentals stands at $280.10, reflecting the strong demand for accommodations in the city. With an impressive occupancy rate of 73%, property owners can enjoy a high level of bookings. The annual revenue generated from short-term rentals in Honolulu is approximately $67,100, making it a lucrative option for property owners. When evaluating the potential return on investment, the average gross yield in the short-term rental market is an attractive 8.52%.
Property Taxes
Property taxes are a significant consideration for short-term rental owners. In Honolulu, the average property tax rate is 0.32% of the property’s assessed value. This factor should be taken into account when assessing the profitability of short-term rental investments.
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Answering Key Questions
Median Household Income
The median household income in Honolulu, HI is approximately $80,000, but this figure may vary by neighborhood and individual circumstances.
Climate
Honolulu enjoys a tropical climate with warm temperatures year-round. The average temperature ranges from 75°F (24°C) in the winter to 85°F (29°C) in the summer, making it an ideal destination for those seeking sun and sea.
Population Size
As of my last knowledge update in January 2022, Honolulu had a population of around 350,000. However, it’s essential to verify this data as it may have changed over time.
Sports Teams and Colleges
Honolulu is home to the University of Hawaii at Manoa, which fields various college sports teams. The city hosts the University of Hawaii Rainbow Warriors, competing in NCAA Division I.
Crime Rate
The safety of a destination is a key concern for travelers and property investors. As of 2022, Honolulu had a relatively low crime rate compared to many mainland U.S. cities. To get the most up-to-date information, it’s advisable to consult the local police department or relevant authorities.
Visitor Demographics
Tourists flock to Honolulu from all corners of the globe. Visitors primarily arrive from the U.S. mainland, Japan, Canada, Australia, and other Asian countries. The city’s diverse appeal makes it a melting pot of cultures and nationalities.
Total Number of Visitors
As a popular tourist destination, Honolulu typically sees millions of visitors annually. The exact number can vary from year to year, so it’s advisable to check the latest tourism statistics for the most accurate data.
Tourist Attractions
Honolulu boasts a myriad of tourist attractions, including the iconic Waikiki Beach, Pearl Harbor, Diamond Head, Hanauma Bay, and the Polynesian Cultural Center. These sites offer diverse experiences that cater to different interests and ages.
Peak Season
Honolulu’s peak tourist season usually aligns with the winter months when many people seek respite from colder climates. However, the city sees visitors throughout the year, thanks to its consistently pleasant weather.
Conclusion
The short-term rental market in Honolulu, HI, is thriving, with a significant number of properties and strong demand from visitors. While property depreciation and taxes may be factors to consider, the potential for high occupancy rates and substantial revenue makes it an attractive investment opportunity. Honolulu’s unique blend of culture, natural beauty, and vibrant city life ensures its enduring appeal as a top vacation destination. As such, the short-term rental market is likely to remain robust for years to come.
