If you are a real estate investor looking to enter the short-term rental market, you might want to consider Myrtle Beach, South Carolina. Known as the “Grand Strand,” Myrtle Beach is a popular tourist destination with a vibrant economy and an investor-friendly regulatory environment.
In this guide, we will explore the (Airbnb) short-term rental market in Myrtle Beach, including market trends, revenue potential, and regulations. We will also answer some common questions about Myrtle Beach, such as the climate, population size, and tourist attractions.
Market Trends
According to Zillow, homes in Myrtle Beach have appreciated by 0.30% over the past year, making it a strong market for real estate investors. The median home value is $299,291 which is slightly higher than the national average.
Supply
The most popular homes are 2-bedroom homes, comprising 24.49% of inventory. This is followed by 1 and 3-bedroom homes at 22.64% and 22.29% of the total inventory, respectively.
Regulations
Myrtle Beach has a relatively investor-friendly regulatory environment when it comes to short-term rentals. Unlike some other cities, Myrtle Beach does not require a permit or license to operate a short-term rental.
However, short-term rental owners must comply with certain rules and regulations, such as obtaining a business license, paying local and state taxes, and complying with building and safety codes. Additionally, Airbnb rentals must follow noise and occupancy restrictions, and they must display emergency contact information and the property’s street address.
Average Daily Rate
The median ADR for the market is $299. The Average Daily Rate is the highest for 7-bedroom homes ($449) followed by 6-bedrooms and 5 bedrooms at $423 and $422 respectively.
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Climate, Population, and Income
Myrtle Beach has a subtropical climate, with mild winters and hot summers. The average temperature in July, the hottest month, is 88 degrees Fahrenheit, while the average temperature in January, the coldest month, is 54 degrees Fahrenheit. Myrtle Beach has a population of approximately 34,695 people, according to the United States Census Bureau.
The median household income in Myrtle Beach is $51,828, which is lower than the national average. However, Myrtle Beach has a strong tourism industry that provides many job opportunities and supports the local economy.
Hosts
The market is dominated by property management firms. The largest host is Luxury Beach with 3.68% of the total inventory and an average review of 4.70 ⭐️s .
Sports Teams and Colleges
Myrtle Beach is home to several sports teams, including the Myrtle Beach Pelicans, a Minor League Baseball team affiliated with the Chicago Cubs. The Pelicans play at TicketReturn.com Field, which has a seating capacity of 6,600.
Myrtle Beach is also home to Coastal Carolina University, a public university with over 10,000 students. Coastal Carolina University offers over 70 undergraduate and graduate degree programs in fields such as business, education, and science.
Guests
The majority of the guests come from outside of South Caroline. 4.4% of all guests are from Charlotte followed by Raleigh with 1.77%.
Crime Rate
Like any city, Myrtle Beach has its share of crime. According to NeighborhoodScout, the city’s overall crime rate is higher than the national average.
However, the crime rate has been decreasing in recent years, thanks in part to increased police presence and community engagement. Visitors to Myrtle Beach can take steps to stay safe, such as locking their cars and hotel rooms, staying in well-lit areas at night, and being aware of their surroundings.
Tourism
Tourism is a major industry in Myrtle Beach, with millions of visitors coming to the city each year. According to the Myrtle Beach Area Chamber of Commerce, the total number of visitors to Myrtle Beach in 2021 was
approximately 19.5 million, with an estimated economic impact of $8.2 billion. Visitors to Myrtle Beach come from all over the country, with the largest percentage coming from the Southeast region. Popular activities for tourists include visiting the beach, golfing, shopping, and dining at local restaurants.
Tourist Attractions
Myrtle Beach has a wide range of tourist attractions to suit all interests. Of course, the biggest draw is the beach itself, with over 60 miles of sandy shoreline. Other popular attractions include:
- Broadway at the Beach: A shopping and entertainment complex with over 75 stores, restaurants, and attractions, including an aquarium and an amusement park.
- Myrtle Beach SkyWheel: A 187-foot tall Ferris wheel with enclosed gondolas that provide panoramic views of the ocean and the city.
- Myrtle Beach Boardwalk and Promenade: A 1.2-mile wooden boardwalk that runs along the beach and features shops, restaurants, and attractions.
- Ripley’s Aquarium: An indoor aquarium with over 10,000 sea creatures, including sharks, stingrays, and sea turtles.
- Myrtle Waves Water Park: A water park with over 20 slides and attractions, including a lazy river and a wave pool.
Peak Season
The peak season in Myrtle Beach runs from Memorial Day (late May) to Labor Day (early September), when the weather is warmest and the beaches are busiest. During this time, rental rates and occupancy rates are typically higher, making it a lucrative time for short-term rental owners. However, Myrtle Beach is a popular destination year-round, with events and activities happening throughout the year, such as the Carolina Country Music Festival in June and the Myrtle Beach Marathon in March.
Conclusion
In conclusion, Myrtle Beach, SC is a thriving market for short-term rentals, with strong market trends, attractive revenue potential, and an investor-friendly regulatory environment. The city’s tourism industry and wide range of attractions make it an appealing destination for visitors from all over the country. As with any investment, there are risks and challenges to consider, such as competition from other short-term rentals and potential changes in regulations. However, for real estate investors looking to enter the short-term rental market, Myrtle Beach is certainly worth considering.
