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
To understand the dynamics of the short-term rental market in Joshua Tree, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 2-bedroom homes, comprising 26.36% of inventory. This is followed by 3 and 1-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Joshua Tree experienced an depreciation of -4.76%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Joshua Tree have depreciated by -4.76%. The median home value in Joshua Tree is $381,657 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, Joshua Tree boasts a significant Airbnb rental market, with approximately 1,124 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 $383. The Average Daily Rate is the highest for 5-bedroom homes $516, followed by 4-bedrooms and 2 bedrooms at $455 and $283 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 60.31% for Airbnb rentals in Joshua Tree. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Joshua Tree ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 10.99% in Joshua Tree. This figure suggests that short-term rentals in the city offer a favorable return on investment. Joshua Tree is ranked #12 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Joshua Tree earn an average of $41,936 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Hosts
The market is dominated by property management firms. The largest host is Hi-Desert Dwellings with 4.99% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Joshua Tree is 0.78%. 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 Joshua Tree come from California and are within driving distance. 22.00% of all guests are from Los Angeles followed by San Diego with 5.00%.
Regulations
Joshua Tree’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.
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.
