Introduction
Nestled in the heart of the Rocky Mountains, Breckenridge, Colorado, is a charming and picturesque town known for its world-class ski resorts, stunning natural beauty, and vibrant cultural scene. It’s no surprise that Breckenridge has become a hotspot for tourists seeking the perfect winter wonderland or summer escape. With the growth of the short-term rental market, including Airbnb listings, Breckenridge has witnessed significant changes in its real estate landscape. In this blog post, we’ll delve into the dynamics of the Airbnb and short-term rental market in Breckenridge, CO, while also addressing some key questions about the town.
Market Overview
To understand the dynamics of the short-term rental market in Breckenridge, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 30.15% of inventory. This is followed by 2 and 4-bedroom homes at 24.62% and 23.28% of the total inventory, respectively.
Homes Appreciation
As of November 2024, according to Zillow, homes in Breckenridge experienced a depreciation of -0.64%. This data indicates a significant decrease in property values.
Median Home Value
As of November of 2024, Homes in Breckenridge have depreciated by -0.64%. The median home value in Breckenridge is $1,200,000 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of November 2024, Breckenridge boasts a significant Airbnb rental market, with approximately 2,047 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $427. The Average Daily Rate is the highest for 5-bedroom homes ($283) followed by 4-bedrooms and 3 bedrooms at $227 and $148 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 61% for Airbnb rentals in Breckenridge. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Breckenridge ?
As of November 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 5.98% in Breckenridge. This figure suggests that short-term rentals in the city offer a favorable return on investment. Breckenridge is ranked #88 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Breckenridge earn an average of $68,820 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Breckenridge is 0.34%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Breckenridge’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Hosts
The market is dominated by property management firms. The largest host is Vacasa Colorado with 4.66% of the total inventory and an average review of 4.78 ⭐️s .
Median Household Income
The median household income in Breckenridge, CO, is $67,507, which reflects the economic diversity of the town. While it’s an attractive destination for high-income tourists, the local community is supported by a variety of industries.
Climate
Breckenridge is known for its stunning alpine climate. Winters offer excellent skiing opportunities, while summers provide a cool and comfortable escape from the heat. The average temperature in January is 28°F, while July sees an average high of 70°F.
Population Size
Breckenridge has a population of approximately 4,849 residents. However, this number significantly swells during peak tourist seasons, making the town a bustling and dynamic community.
Guests
The majority of the guests come from inside of Colorado. 10.44% of all guests are from Denver followed by Houston with 2.58%.
Sports Teams and Colleges
While Breckenridge may not host major professional sports teams, it is a hub for winter sports enthusiasts. The town is famous for its ski resorts, attracting athletes and visitors from around the world. There are no colleges located in Breckenridge, but nearby institutions provide education options.
Crime Rate
Breckenridge maintains a relatively low crime rate, making it a safe and welcoming destination for tourists and residents alike. The local law enforcement agencies prioritize the safety and security of the community.
Tourism in Breckenridge
Visitor Demographics
Tourists come to Breckenridge from various regions, including nearby Colorado cities, neighboring states, and international destinations. Denver, just over two hours away, is a significant source of visitors.
Total Number of Visitors
Breckenridge welcomes approximately 1.8 million visitors annually, making it a major tourist destination in Colorado.
Tourist Attractions
Breckenridge offers a wide range of attractions, from the renowned Breckenridge Ski Resort to historic Main Street, where visitors can explore quaint shops, restaurants, and cultural events. Other popular attractions include the Breckenridge Arts District and the beautiful McCullough Gulch Trail.
Peak Season
The peak seasons in Breckenridge vary with the weather. Winter, primarily from December to March, is the high season for skiing and snow sports. Summer, from June to August, is another busy period when tourists flock to the town for hiking, biking, and various outdoor activities.
Conclusion
Breckenridge, Colorado, is not just a destination for outdoor enthusiasts but also a lucrative market for short-term rentals, including Airbnb properties. With its robust short-term rental market, favorable property tax rates, and diverse tourism appeal, it remains an attractive choice for investors looking to capitalize on the demand for vacation rentals. As the town continues to evolve and grow, it offers unique opportunities for property owners and a memorable experience for all who visit its stunning landscapes and vibrant community.
