Introduction
Lexington, Kentucky, often referred to as the “Horse Capital of the World,” is a city known for its rich history, scenic landscapes, and vibrant culture. Over the years, the city has become a popular destination for tourists and travelers seeking a taste of Southern charm. With the rise of Airbnb and other short-term rental platforms, Lexington’s housing market has witnessed significant changes. In this blog post, we will delve into the short-term rental market in Lexington, exploring key data points and providing insights for both hosts and travelers.
The Real Estate Landscape
Property Depreciation
According to Zillow, homes in Lexington experienced a 7.00% depreciation, making it an attractive market for potential real estate investors looking for affordable properties.
Median Home Value
The median home value in Lexington, KY, stands at $292,304, offering a range of options for short-term rental property investments.
Airbnb in Lexington
Active Short-Term Rentals
Chalet reports a staggering 1,026 active short-term rentals in Lexington, showcasing the popularity of this market among property owners.
Average Daily Rate
The average daily rate for short-term rentals in the city is $229.30, making it a competitive market for hosts looking to maximize their rental income.
Occupancy Rate
Chalet also reveals an occupancy rate of 49%, indicating consistent demand for short-term rental properties throughout the year.
Annual Revenue
Hosts in Lexington can expect an annual revenue of approximately $33,400 from their short-term rental properties.
Gross Yield
The average gross yield for short-term rentals in Lexington is an attractive 11.43%, making it a lucrative investment opportunity.
Property Tax
SmartAsset reports an average property tax rate of 0.89%, which can be a factor for property owners to consider when operating short-term rentals.
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Understanding Lexington, KY
Now that we have explored the Airbnb market in Lexington, let’s take a closer look at the city itself.
Median Household Income
The median household income in Lexington, KY, plays a crucial role in the affordability of short-term rental properties and the potential market for hosts.
Climate
Lexington enjoys a moderate climate with four distinct seasons, making it an attractive year-round destination.
Population Size
The city is home to a population of approximately 330,000 residents, creating a diverse and dynamic environment for hosts and travelers alike.
Sports Teams
Lexington is known for its college sports, with the University of Kentucky Wildcats being the most prominent team in the region.
Colleges
Apart from the University of Kentucky, Lexington is home to other higher education institutions like Transylvania University.
Crime Rate
While Lexington is generally safe, understanding the local crime rate is essential for both hosts and travelers to ensure a secure stay.
Visitor Demographics
Knowing where visitors are coming from can help hosts tailor their listings to cater to specific demographics.
Total Number of Visitors
Understanding the volume of visitors to Lexington allows hosts to gauge demand and pricing strategies.
Tourist Attractions
The city boasts attractions like Keeneland Race Course, the Kentucky Horse Park, and bourbon distilleries that draw tourists year-round.
Peak Season
Identifying the peak season in Lexington helps hosts plan their rental availability and pricing accordingly.
Conclusion
The short-term rental market in Lexington, KY, presents an exciting opportunity for both property investors and travelers. With its appealing property values, steady demand, and diverse attractions, Lexington continues to shine as a top destination in the Airbnb landscape. Whether you’re looking to host or explore this charming city, understanding the data and nuances presented in this blog post can help you make informed decisions and enjoy all that Lexington has to offer.
