The short-term rental (Airbnb) market in Joshua Tree, CA has been gaining popularity among investors, homeowners, and travelers in recent years.
The city’s natural beauty and proximity to Los Angeles make it a desirable destination for weekend getaways and outdoor adventures.
In this guide, we will delve into the current state of the short-term rental (Airbnb) market in Joshua Tree, CA, and explore the various factors that make it a lucrative investment opportunity.
Market Overview
According to Zillow, the median home value in Joshua Tree, CA is $385,941 home prices in the city appreciated by -10.20% in the past year, indicating a stable and growing housing market.
With a population of around 7,500 residents, Joshua Tree has seen a surge in short-term rental properties in recent years. According to Chalet, there are currently 1,362 active (Airbnb) short-term rentals in Joshua Tree, with an average daily rate of $314.60 and an occupancy rate of 54%.
Supply
The most popular homes are 2-bedroom homes, comprising 35.12% of inventory. This is followed by 3 and 1-bedroom homes at 30.31% and 17.34% of the total inventory, respectively.
Revenue
The average gross yield for short-term (Airbnb) rentals in Joshua Tree is 14.56%, making it a potentially lucrative investment opportunity. Additionally, the city’s investor-friendly (Airbnb) short-term rental regulations have made it easier for property owners to operate short-term rental businesses.
Average Daily Rate
The median ADR for the market is $314.60. The Average Daily Rate is the highest for 7-bedroom homes ($691) followed by 6 bedrooms and 5 bedrooms at $461 and $453 respectively.
Financial Overview
For those considering investing in the short-term rental market in Joshua Tree, CA, it is important to take into account the financial aspects of the investment.
According to Chalet, the annual revenue for Airbnb rentals in the city is $56,200, based on the current average daily rate and occupancy rate. Property taxes in Joshua Tree are relatively low, with an average property tax rate of 1.03% according to SmartAsset.
Hosts
The market is dominated by property management firms. The largest host is Hi-Desert Dwellings with 2.83% of the total inventory and an average review of 4.99 ⭐️s .
Demographics and Climate
The city of Joshua Tree has a population of around 7,500 residents. According to the United States Census Bureau, the median household income in Joshua Tree is $44,202. The city has a dry, desert climate, with hot summers and mild winters.
During the summer months, temperatures can exceed 100 degrees Fahrenheit, while winters are relatively mild with temperatures ranging between 40 to 60 degrees Fahrenheit.
Guests
The majority of the guests come from inside of California. 19.96% of all guests are from Los Angeles followed by San Diego with 7.43%.
Sports and Education
Despite its small size, Joshua Tree is home to several sports teams, including the Joshua Tree Vipers Football Club and the Joshua Tree Coyotes Baseball Club. There are no colleges or universities located within the city limits, but nearby institutions include Copper Mountain College and the College of the Desert.
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Crime Rate
According to NeighborhoodScout, the crime rate in Joshua Tree is lower than the national average. The city’s crime rate is 32 crimes per 1,000 residents, which is significantly lower than the national average of 47.7 crimes per 1,000 residents.
Tourism Industry
Joshua Tree’s natural beauty and proximity to Los Angeles have made it a popular tourist destination. Visitors from all over the world come to explore the Joshua Tree National Park, which offers stunning desert landscapes and unique rock formations. According to the National Park Service, the park had 2.4 million visitors in 2020, making it one of the most visited national parks in California. The city also offers various outdoor activities, such as hiking, rock climbing, and stargazing.
Tourist Attractions and Peak Season
The biggest tourist attractions in Joshua Tree include the aforementioned Joshua Tree National Park, as well as the Noah Purifoy Outdoor Museum, and the Integratron, a unique dome structure that offers sound baths. The peak season in Joshua Tree is typically during the fall and spring months when temperatures are more mild. During the peak season, visitors from all over the world come to the city to experience its natural wonders and outdoor activities.
Visitor Demographics
According to a study by the National Park Service, the majority of visitors to the Joshua Tree National Park come from California, followed by Arizona, Texas, and New York. The park also attracts international visitors, with the highest number of foreign visitors coming from Canada, the United Kingdom, and Germany.
Conclusion
The short-term rental market in Joshua Tree, CA offers investors a potentially lucrative investment opportunity. With a stable and growing housing market, a surge in short-term rental supply, and investor-friendly regulations, the city is poised for growth in the short-term rental industry. Additionally, the city’s natural beauty and proximity to Los Angeles make it a desirable destination for travelers, further adding to the investment potential of the market.
