Panama City Beach, FL, is a popular tourist destination that has experienced significant growth in the short-term rental market in recent years.
According to Chalet, there are currently 14,543 active short-term rentals in Panama City Beach, FL.
The occupancy rate is 58%, and the annual revenue for short-term rentals is $50,600.
Property Values
The real estate market in Panama City Beach, FL, has been growing rapidly. According to Zillow, the median home value in Panama City Beach, FL, is $496,566.
Home values have also depreciated by -0.30%, indicating a strong real estate market.
Supply
The most popular homes are 3-bedroom homes, comprising 26.94% of inventory. This is followed by 2 and 1-bedroom homes at 24.88% and 18.3% of the total inventory, respectively.
Average Gross Yield and Property Taxes
The average gross yield in Panama City Beach, FL, is 10.19%, which is a very good return for short-term rental investors. Additionally, the average property tax rate in Panama City Beach, FL, is 0.69%, according to SmartAsset. This is a low property tax rate compared to other tourist destinations, making it an attractive location for investors in Airbnb rentals.
Average Daily Rate
The median ADR for the market is $295.80. The Average Daily Rate is the highest for 7-bedroom homes ($534) followed by 6-bedrooms and 5 bedrooms at $523 and $449 respectively.
Location
Panama City Beach, FL, is located in Bay County, Florida. It is a popular vacation spot due to its beautiful beaches and crystal-clear waters. The area offers a wide range of tourist activities, including fishing, kayaking, paddle boarding, and other outdoor activities.
Short-Term Rental Regulation
Short-term rental regulation in Panama City Beach, FL, is investor-friendly. There are zoning restrictions for STRs in Panama City Beach. High, Medium, and Low-Intensity Commercial districts, Limited and Unlimited Multi-family districts, and Townhouse districts allow (Airbnb) short-term rentals of less than 181 consecutive nights.
See our detailed analysis of short-term rental regulation in Panama City Beach, FL.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Florida with 6.87% of the total inventory and an average review of 4.51 ⭐️s .
Median Household Income
The median household income in Panama City Beach, FL, is approximately $70,131. While this is slightly lower than the national median income, the cost of living is also slightly lower, which means that residents in the area can still enjoy a high quality of life.
Guests
The majority of the guests come from outside of Florida. 4.27% of all guests are from Atlanta followed by Houston with 3.19%.
Climate
Panama City Beach, FL, has a subtropical climate, which means it is warm and humid throughout the year. The area receives an average of 320 days of sunshine annually, making it an excellent destination for those seeking warm weather. In the summer, temperatures can reach up to 90 degrees Fahrenheit, while in the winter, temperatures can drop to around 50 degrees Fahrenheit.
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Population
According to the US Census Bureau, the population of Panama City Beach, FL, is around 18,294 people. This number increases significantly during peak tourist season, making it a bustling and vibrant area.
Sports Teams and Colleges
There are no major professional sports teams based in Panama City Beach, FL. However, the area does have several community sports leagues, including softball, soccer, and volleyball. As for colleges, there are several institutions in the area, including Gulf Coast State College and Florida State University Panama City.
Crime Rate
Like many tourist destinations, Panama City Beach, FL, has a slightly higher crime rate than other areas. However, the area is still considered relatively safe.
Tourism
Panama City Beach, FL, attracts visitors from all over the world. According to Visit Panama City Beach, the largest number of visitors come from neighboring states like Alabama, Georgia, and Tennessee. Other visitors come from across the United States, as well as from countries like Canada, the United Kingdom, and Germany.
Panama City Beach, FL, has a wide range of tourist attractions to suit every taste. One of the biggest draws of the area is the beach itself, which is renowned for its white sand and clear water. Other popular attractions include Gulf World Marine Park, Shipwreck Island Waterpark, and St. Andrews State Park.
Peak Season
The peak season in Panama City Beach, FL, runs from March through August. During this time, the area is bustling with tourists looking to enjoy the warm weather and beautiful beaches. If you’re looking to visit during the peak season, be sure to book your accommodations well in advance to avoid disappointment.
Conclusion
Overall, the (Airbnb) short-term rental market in Panama City Beach, FL, is thriving. The area’s strong real estate market, low property tax rates, and investor-friendly short-term rental regulations make it an attractive location for investors. With a high occupancy rate, strong gross yield, and an increase in supply, Panama City Beach, FL, is a promising destination for those looking to invest in short-term rentals.
