Introduction
Vail, Colorado is one of the most popular ski destinations in the United States, attracting thousands of visitors each year.
The short-term rental market in Vail has grown rapidly in recent years, as property owners have taken advantage of the opportunity to earn additional income by renting out their homes to tourists.
Market Data
According to Zillow, homes in Vail have appreciated 4.30% over the past year. The median home value in Vail is $1,674,665 making it one of the most expensive real estate markets in the country. Despite the high home prices, Airbnb rental properties remain popular with investors, as they offer the potential for high rental yields.
Supply
The most popular homes are 2-bedroom homes, comprising 29.81% of inventory. This is followed by 1 and 3-bedroom homes at 26.56% and 20.76% of the total inventory, respectively.
Investment Potential
One of the key reasons that the short-term (Airbnb) rental market in Vail is attractive to investors is the potential for high rental yields. The average gross yield for Airbnb rental properties in Vail is 7.19%. This is higher than the average gross yield for long-term rental properties, which is typically around 4-5%.
Another factor that makes Vail an attractive market for short-term rental investors is the relatively low property tax rate. According to SmartAsset, the average property tax rate in Vail is 0.42%, which is lower than many other real estate markets in the United States. This means that investors can potentially earn higher net rental yields, as they are paying less in property taxes.
Average Daily Rate
The median ADR for the market is $812.70. The Average Daily Rate is the highest for 7 bedroom homes ($975) followed by 6-bedrooms and 5 bedrooms at $886 and $779 respectively.
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Airbnb Laws and Regulations
One of the factors that have contributed to the growth of the short-term rental market in Vail is the investor-friendly regulatory environment. Unlike some other markets, Vail has relatively relaxed regulations when it comes to short-term rentals.
Property owners are not required to obtain a special license or permit in order to rent out their homes on a short-term basis. However, there are some basic requirements that must be met, such as obtaining a sales tax license and complying with safety and health regulations.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Colorado with 10.01% of the total inventory and an average review of 4.65⭐️s .
Demographics and Climate
Vail has a small population of approximately 5,400 people, according to the U.S. Census Bureau. The median household income in Vail is $103,870, which is higher than the national median household income. This is not surprising given that Vail is a popular tourist destination and a hub for luxury tourism.
The climate in Vail is predominantly cold and snowy. Winters are long and harsh, with temperatures often dropping below freezing. Summers are mild and sunny, with temperatures averaging around 70 degrees Fahrenheit. The town receives an average of 200 inches of snowfall per year, making it a popular destination for winter sports enthusiasts.
Sports and Education
Vail is home to several sports teams, including the Vail Valley Soccer Club and the Vail Grizzlies baseball team. The town is also known for its world-renowned ski resorts, which attract thousands of skiers and snowboarders every year.
Vail does not have any colleges or universities within its borders. However, there are several colleges and universities located nearby, including Colorado Mountain College and the University of Colorado Boulder.
Guests
The majority of the guests come from inside of Colorado. 10.54% of all guests are from Denver followed by New York with 2.39%.
Crime and Tourism
Vail has a low crime rate compared to other towns in the United States. According to NeighborhoodScout, the crime rate in Vail is 54% lower than the national average. This makes Vail a safe and secure destination for tourists and residents alike.
Vail is a popular destination for tourists from all over the world. According to the Vail Valley Foundation, visitors to Vail come from all over the United States, as well as from international destinations such as Mexico, Canada, and Australia. In 2019, Vail welcomed a total of 1,744,212 visitors, making it one of the most popular tourist destinations in the United States.
Tourist Attractions and Peak Season
Vail is known for its world-class ski resorts, which attract skiers and snowboarders from all over the world. Other popular tourist attractions in Vail include the Betty Ford Alpine Gardens, the Vail Mountain Bike Park, and the Vail Village Farmers’ Market.
The peak season in Vail is during the winter months, from December to February. This is when the ski resorts are at their busiest and when the town is filled with tourists. However, Vail is also a popular destination during the summer months, when visitors come to enjoy the town’s natural beauty and outdoor activities.
Conclusion
Overall, the short-term rental market in Vail, CO remains an attractive opportunity for investors who are looking for high rental yields and a relatively low tax burden. With the market continuing to grow and the supply of short-term rental properties increasing, there is still plenty of opportunity for new investors to enter the market. However, as with any real estate investment, it is important to do thorough research and due diligence before making a purchase, in order to ensure that you are making a sound investment decision.
