Hollywood, Florida, is located in Broward County, south Florida. It is a popular tourist destination with a population of approximately 150,000 people. Hollywood is known for its beautiful beaches, parks, and vibrant downtown area and has become a popular location for Airbnb rentals.
In this guide, we will take a closer look at the short-term rental market in Hollywood, FL, including data points such as home appreciation rates, median home values, active short-term rental listings, average daily rates, occupancy rates, revenue, supply, gross yield, property taxes, and regulations.
Market Overview
To understand the dynamics of the short-term rental market in Dallas, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are studio homes, comprising 26.36% of inventory. This is followed by 1 and 2-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Hollywood experienced an depreciation of 1.83%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Hollywood have depreciated by 1.83%. The median home value in Hollywood is $456,800 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Hollywood boasts a significant Airbnb rental market, with approximately 4,847 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $326. The Average Daily Rate is the highest for 4-bedroom homes $466, followed by 5-bedrooms and 3 bedrooms at $454 and $407 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 50.69% for Airbnb rentals in Holywood. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Hollywood ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 12.33% in Hollywood. This figure suggests that short-term rentals in the city offer a favorable return on investment. Hollywood is ranked #38 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Hollywood earn an average of $38,115 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Hollywood
Hollywood’s top submarkets for Airbnb investments include areas like ZIP code 33021, which has the highest gross yield at 10% and an annual revenue of $45,460. In contrast, ZIP code 33019 offers more extensive opportunities with 4,797 full-time listings, but a lower gross yield of 7%.
Hosts
The market is dominated by property management firms. The largest host is Stay Sol with 4.77% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Hollywood is 1.00%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Hollywood come from Florida and are within driving distance. 3.8% of all guests are from New York followed by Miami with 3.5%.
Regulations
Hollywood’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Climate and Weather
Hollywood, FL, has a tropical climate, which means it is warm and humid throughout the year. The city experiences hot summers, with average temperatures ranging from 81°F to 91°F. Winters in Hollywood are mild, with temperatures ranging from 62°F to 77°F. The city is known for its frequent rainfall, which is why it has lush greenery and vegetation.
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Population and Median Household Income
As mentioned earlier, Hollywood, FL, has a population of around 150,000. The median household income in Hollywood, FL, is $56,912, lower than the national median household income.
Sports Teams and Colleges
FL Hollywood, FL, is home to the Miami Dolphins NFL football team, which plays at the Hard Rock Stadium. The city also has the Muvico Paradise 24 theater, which has been rated as one of the best movie theaters in the United States. When it comes to colleges, there is a satellite campus of Broward College in Hollywood.
Crime Rate
The crime rate in Hollywood, FL, is higher than the national average, according to NeighborhoodScout. However, the city has taken several measures to reduce crime and improve safety, including technology and community policing.
Visitor Demographics and Tourist Attractions
Visitors to Hollywood, FL, come from all over the world, with a significant number of tourists from Canada and Europe. The total number of visitors to Hollywood, FL, is approximately 10 million per year, with the majority of them visiting the city for its beaches, attractions, and cultural events.
Some of the biggest tourist attractions in Hollywood, FL, include the Hollywood Beach Boardwalk, the Anne Kolb Nature Center, the Seminole Hard Rock Hotel & Casino, and the Art and Culture Center of Hollywood. The city is also known for its vibrant downtown area, which has a variety of restaurants, shops, and entertainment options.
Peak Season
The peak season in Hollywood, FL, is from December to April, when the weather is mild, and the city is bustling with tourists. During this time, hotels and short-term rental properties tend to be more expensive, and attractions and beaches can be crowded. For those looking for a quieter experience, visiting Hollywood, FL during the off-peak season can be a good option.
Conclusion
The short-term rental market in Hollywood, FL, is thriving. With a high demand for short-term rentals, a growing supply, and favorable regulations, the market is attractive to property owners. Home appreciation rates and median home values are strong, and the average daily rate and occupancy rate suggest that there is a steady demand for short-term rentals in the area. The data points provided in this guide can be valuable for property owners looking to maximize their rental income and investment return.
