Raleigh, North Carolina, has become an attractive destination for both tourists and real estate investors. With its vibrant culture, thriving economy, and proximity to major universities and research centers, Raleigh offers a promising landscape for short-term (Airbnb) rental investments.
In this guide, we will delve into the key factors that make Raleigh an appealing market for Airbnb rentals and provide insights into local regulations, market trends, and tourist attractions.
Home Appreciation and Median Home Value
According to Zillow, homes in Raleigh have appreciated by 3.00% recently. This indicates a steady and positive growth trend in the local real estate market. The median home value in Raleigh is reported to be $434,407, which reflects the overall strength and stability of the housing market.
Supply
The most popular homes are 3-bedroom homes, comprising 35.03% of inventory. This is followed by 2 and 1-bedroom homes at 24.41% and 20.15% of the total inventory, respectively.
Short-Term (Airbnb) Rental Statistics
Chalet data reveals that there are currently around 1,596 active short-term rentals in Raleigh. These properties contribute significantly to the local economy and offer an alternative accommodation option for visitors.
Average Daily Rate
The median ADR for the market is $175.10. The Average Daily Rate is the highest for 6-bedroom homes ($285) followed by 5-bedrooms and 4 bedrooms at $231 and $213 respectively.
Gross Yield
The average gross yield, which represents the annual return on investment, is currently at 6.49%. This figure suggests that short-term rentals in Raleigh can offer a lucrative income stream for property owners.
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Property Tax and Regulation
Property taxes are an important consideration for real estate investors. In Raleigh, the average property tax rate is reported to be 0.96% according to SmartAsset. It’s crucial to factor in these expenses when calculating the profitability of short-term rental investments.
In terms of regulation, Raleigh’s Airbnb rental market is somewhat investor-friendly. While there are zoning regulations and limitations in place, the city has not imposed overly restrictive measures on short-term rentals. Moreover, new laws are being considered that may make it even easier for investors to own and operate short-term rentals in the future.
Hosts
The market is not dominated by property management firms. The largest host is Stacy with 1.9% of the total inventory and an average review of 5.00 ⭐️s .
Exploring Raleigh, NC
Now that we have examined the key aspects of the short-term (Airbnb) rental market in Raleigh, let’s delve into some essential information about the city itself.
Median Household Income
The median household income in Raleigh, NC, is not mentioned in the provided data points. However, as of my knowledge cutoff date in September 2021, the median household income in Raleigh was approximately $67,000 per year. It’s worth noting that this figure may have changed, and it’s advisable to refer to the latest data for the most accurate information.
Climate and Population Size
Raleigh, like much of North Carolina, experiences a humid subtropical climate. The summers are hot and humid, with average temperatures ranging from the 80s to low 90s Fahrenheit (around 26-35 degrees Celsius). Winters are generally mild, with temperatures averaging in the 40s and 50s Fahrenheit (around 4-15 degrees Celsius).
As for the population size, Raleigh has been experiencing rapid growth in recent years. As of my knowledge cutoff date, the estimated population of Raleigh was around 474,000. However, it’s essential to note that this number may have increased since then due to the city’s ongoing development and population influx.
Guests
The majority of the guests come from inside of North Caroline. 4.96% of all guests are from Raleigh followed by Charlotte with 3.51%.
Sports Teams and Colleges
Raleigh is home to several notable sports teams, including:
- Carolina Hurricanes (NHL): The Carolina Hurricanes are a professional ice hockey team based in Raleigh. They have a dedicated fan base and play their home games at the PNC Arena.
- North Carolina FC (USL League One): North Carolina FC is a professional soccer team based in Cary, a neighboring town of Raleigh. They compete in the USL League One and play their home matches at the WakeMed Soccer Park.
Raleigh is also known for its renowned educational institutions, including:
- North Carolina State University (NCSU): NCSU is a prominent public research university located in Raleigh. It is known for its strong programs in engineering, agriculture, and veterinary sciences.
- Meredith College: Meredith College is a private liberal arts college for women located in Raleigh. It offers a wide range of undergraduate and graduate programs in various disciplines.
Crime Rate and Tourist Attractions
Unfortunately, the provided data points do not include information about the crime rate in Raleigh, NC. It’s advisable to refer to the latest crime statistics or official sources for the most accurate and up-to-date information on crime rates in the city.
Raleigh boasts a diverse range of tourist attractions that cater to a variety of interests. Some of the notable attractions include:
- North Carolina Museum of Natural Sciences: This museum is the largest natural history museum in the Southeast and offers a wide range of exhibits, including dinosaur fossils, live animals, and interactive displays.
- North Carolina Museum of Art: The North Carolina Museum of Art features an extensive collection of artworks, including European paintings, American art, and contemporary works. The museum also has beautiful outdoor sculpture gardens.
- Pullen Park: Pullen Park is a picturesque park in Raleigh with various recreational activities, including paddle boats, a miniature train ride, and a historic carousel. It’s a popular spot for families and outdoor enthusiasts.
- Marbles Kids Museum: Designed for children, Marbles Kids Museum offers interactive exhibits and hands-on activities that engage young minds in science, art, and imaginative play.
Visitor Demographics and Peak Season
While the data points provided do not specifically mention the visitor demographics or the total number of visitors to Raleigh, NC, it’s worth noting that Raleigh attracts visitors from various locations. As the capital city of North Carolina and a hub for research, technology, and education, Raleigh draws both domestic and international visitors.
The peak season in Raleigh typically aligns with the summer months, from June to August. During this time, the city experiences pleasant weather and hosts various events and festivals. However, it’s essential to note that Raleigh has a thriving business and academic scene, leading to consistent tourism throughout the year.
Conclusion
The short-term rental market in Raleigh, NC, presents an appealing opportunity for real estate investors. With steady home appreciation, a favorable median home value, healthy occupancy rates, and a growing supply of Airbnb rentals, Raleigh offers a potentially profitable investment landscape. Moreover, the city’s somewhat investor-friendly regulations and the potential ease of operating short-term rentals make it an attractive destination.
Beyond the real estate market, Raleigh’s diverse attractions, vibrant culture, and strong educational institutions contribute to its allure as a tourist destination. Whether visitors are interested in museums, parks, sports events, or exploring the city’s lively atmosphere, Raleigh has something to offer for everyone.
As with any investment, it’s crucial to conduct thorough research, analyze the latest data, and consult with local experts to make informed decisions. By keeping a pulse on the market trends and understanding the dynamics of Raleigh’s short-term rental market, investors can position themselves for success in this dynamic and promising city.
