Introduction
Colorado Springs, located at the eastern foot of the Rocky Mountains, is known for its stunning natural landscapes and a vibrant tourism industry. As an attractive destination for outdoor enthusiasts, the city has seen a surge in short-term rental properties, often listed on platforms like Airbnb. In this article, we will delve into the short-term rental market in Colorado Springs, examining key statistics and trends, and providing insights for potential hosts and travelers. Whether you’re interested in investing in a short-term rental property or planning a vacation in this picturesque city, this information will be invaluable.
Market Overview
Property Appreciation and Value
According to Zillow, the housing market in Colorado Springs has experienced a modest depreciation of 0.40%. However, the median home value remains relatively high at $449,123. This information is essential for potential investors looking to purchase property for short-term rentals.
Short-Term Rental Supply and Demand
As of the latest data from Chalet, there are 2,323 active short-term rental listings in Colorado Springs. The average daily rate for these properties stands at $201.80, with an occupancy rate of 62%. These figures indicate a healthy demand for short-term accommodations, making it an attractive prospect for property owners.
Revenue and Growth
The annual revenue for short-term rentals in Colorado Springs is estimated at $36,400. This suggests that the market is growing, which may present opportunities for those considering short-term rentals as a source of income.
Investment Potential
The average gross yield, a key metric for investors, is 8.10%. This means that short-term rentals in Colorado Springs can provide a relatively high return on investment. Additionally, property taxes are reasonable, at just 0.61% of the property’s value according to SmartAsset, making it an appealing choice for property investors.
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Local Insights
Median Household Income
The median household income in Colorado Springs is approximately $70,000. Understanding the income level of potential guests is crucial when pricing your short-term rental property.
Climate
Colorado Springs boasts a semi-arid climate, characterized by moderate temperatures and plenty of sunshine. Summers are warm, while winters can be cold and snowy, making it a year-round destination for visitors seeking both outdoor adventures and cozy getaways.
Population Size
The city of Colorado Springs has a population of around 500,000 residents, making it a vibrant and growing community.
Sports Teams and Colleges
The city is home to several sports teams, including the Colorado Springs Switchbacks FC, a professional soccer team, and the Colorado Springs Sky Sox, a minor league baseball team. Additionally, it hosts the United States Olympic & Paralympic Training Center. There are also several colleges and universities in the area, including the United States Air Force Academy and Colorado College.
Crime Rate
Colorado Springs has a crime rate that is slightly higher than the national average. While it is generally considered a safe city, it’s essential for hosts and visitors to be aware of the local safety conditions.
Tourism Insights
Visitor Demographics
Tourists visit Colorado Springs from various parts of the United States and the world. Understanding the origin of your potential guests can help you tailor your marketing efforts.
Total Visitors
Colorado Springs welcomes millions of visitors each year, drawn by its natural beauty, outdoor activities, and historical attractions.
Tourist Attractions
Some of the city’s most popular tourist attractions include the Garden of the Gods, Pikes Peak, the Air Force Academy, and the Manitou Incline. These iconic landmarks attract visitors year-round, making them ideal locations for short-term rental properties.
Peak Season
The peak tourist season in Colorado Springs typically occurs during the summer months when outdoor activities are in full swing. However, the city also attracts visitors during the winter for activities like skiing and snowboarding.
Conclusion
The short-term rental market in Colorado Springs, CO, offers exciting opportunities for property owners and a variety of accommodations for travelers. With data indicating a growing demand for short-term rentals and promising investment potential, this picturesque city in the heart of Colorado is a prime destination for those looking to explore the world of Airbnb and short-term rentals. Whether you’re seeking an income source or planning your next vacation, Colorado Springs has much to offer.
