Introduction
Savannah, Georgia, a city renowned for its historic charm and Southern hospitality, has emerged as a popular destination for short-term rentals, particularly through platforms like Airbnb. In this blog post, we will delve into the lucrative short-term rental market in Savannah, shedding light on key statistics, market dynamics, and the factors that make this coastal gem a sought-after destination for both tourists and property investors.
Home Values and Depreciation
According to Zillow, the median home value in Savannah stands at $307,925. Interestingly, the real estate market in Savannah has seen a 10.50% appreciation. This dip in home values has created opportunities for property investors looking to acquire homes for short-term rental purposes.
Supply
The most popular homes are 2-bedroom homes, comprising 28.46% of inventory. This is followed by 3 and 1-bedroom homes at 25.69% and 18.13% of the total inventory, respectively.
Short-Term Rental Landscape
Chalet data reveals that Savannah boasts 3,217 active short-term rentals, making it a vibrant market for property owners and entrepreneurs, they enjoy an impressive 61% occupancy rate. As a result, short-term rental owners can generate an annual revenue of $61,100, reflecting a robust opportunity for profit in this market.
Average Daily Rate
The median ADR for the market is $332.70. The Average Daily Rate is the highest for 10 bedroom homes ($682) followed by 9-bedrooms and 7 bedrooms at $674 and $556 respectively.
Returns and Expenses
For those considering short-term rentals in Savannah, it’s important to note that the average gross yield stands at 19.84%, a promising figure for potential investors. Additionally, property taxes in Savannah average 1.21%, which should be factored into financial considerations.
Top 200 Airbnb Rental Markets
Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US by returns on investment, occupancy rates, revenue, home price, and more…
To gain a comprehensive understanding of the short-term rental market in Savannah, it’s essential to consider the broader context of the city. Here are some additional key facts:
Demographics
Savannah, GA, has a median household income, but its value can fluctuate over time. This income level impacts the potential customer base for short-term rentals and is an important consideration for property investors.
Hosts
The market is dominated by property management firms. The largest host is Lucky Savannah with 8.66% of the total inventory and an average review of 4.72⭐️s .
Climate
Savannah enjoys a pleasant subtropical climate, with warm summers and mild winters. This favorable climate contributes to the city’s year-round appeal to tourists and vacationers.
Population
Savannah, GA, has a population size that varies over time, and it is essential to track these figures to assess the demand for short-term rentals.
Sports and Education
Savannah is home to various sports teams and colleges, making it a destination for sports enthusiasts and students alike. Proximity to sports events and educational institutions can be a selling point for short-term rental properties.
Guests
The majority of the guests come from inside of Georgia. 6.64% of all guests are from Atlanta followed by Charlotte with 2.16%.
Crime Rate
Understanding the safety of a city is crucial when considering short-term rentals. Keeping an eye on Savannah’s crime rate is essential for the safety and satisfaction of your guests.
Attracting Visitors to Savannah
To thrive in the short-term rental market in Savannah, it’s vital to know your audience. Consider the following factors:
Visitor Demographics
Understanding where visitors come from and what they seek in Savannah can help you tailor your short-term rental property to cater to their needs.
Total Visitors
Keep an eye on the total number of visitors to Savannah to gauge the demand for short-term rentals and seasonal fluctuations.
Exploring Savannah’s Top Attractions
Savannah, Georgia, boasts a plethora of tourist attractions, including Forsyth Park, historic districts, ghost tours, and riverboat cruises. These attractions contribute to the city’s allure and the demand for short-term rental accommodations.
Peak Season
Savannah’s peak tourist season typically occurs during the spring and fall when the weather is most favorable. Short-term rental property owners can maximize their profits during these high-demand periods.
In conclusion, Savannah, GA, presents an enticing opportunity for those interested in the Airbnb or short-term rental market. With a growing supply of rentals, attractive returns, and a host of local attractions, it’s no wonder that investors and property owners are flocking to this picturesque Southern city. Whether you’re considering entering the market or planning a trip to Savannah, understanding the dynamics of the short-term rental industry and the city itself is crucial for a successful and enjoyable experience.
