Introduction
Atlantic City, New Jersey, known for its vibrant casinos and bustling boardwalk, has also become a popular destination for short-term (Airbnb) rentals. With its attractive location on the East Coast and a range of entertainment options, Atlantic City offers an appealing opportunity for real estate investors.
In this guide, we will delve into the Airbnb rental market in Atlantic City, exploring key data points, market trends, and regulations that shape the industry.
Market Overview
According to Zillow, the housing market in Atlantic City has experienced a healthy appreciation, with homes appreciating by 15.70%. This positive trend indicates a favorable investment environment for potential short-term (Airbnb) rental owners. The median home value in Atlantic City stands at $199,019, making it an affordable market for both investors and vacationers.
Chalet, a leading provider of data and analytics for the short-term rental industry, reports that there are currently 1,146 active Airbnb rentals in Atlantic City. These properties generate an average daily rate of $326, contributing to an annual revenue of $41,500. However, despite the potential earnings, the occupancy rate for short-term rentals in Atlantic City sits at 43%.
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Returns and Expenses
Investors considering short-term rentals in Atlantic City will also want to evaluate the potential returns and expenses associated with such properties. The average gross yield, which represents the return on investment before expenses, stands at 20.85%. However, it’s essential to consider costs such as property taxes, which average 2.93% in Atlantic City, according to SmartAsset. Investors should factor in these expenses to get an accurate understanding of their potential profits.
Regulation Environment
The regulatory landscape for short-term rentals in Atlantic City is somewhat investor-friendly, though it does involve certain zoning regulations and limitations. However, there are new laws in the pipeline that may further ease the process of owning and operating short-term rentals, making it an attractive market for real estate investors.
Responding to Additional Questions
To provide a comprehensive view of Atlantic City, let’s address the additional questions about the city.
Median Household Income, Climate, and Population
The median household income in Atlantic City, NJ, is not specified in the provided data points. However, as of my knowledge cutoff in September 2021, the median household income in Atlantic County, where Atlantic City is located, was approximately $57,554.
Atlantic City enjoys a humid subtropical climate, characterized by hot summers and mild winters. The city experiences four distinct seasons, with average high temperatures ranging from the 40s°F (4-9°C) in winter to the 80s°F (26-31°C) in summer.
As for the population size, Atlantic City had an estimated population of 37,743 as of 2020, according to the U.S. Census Bureau.
Sports Teams and Colleges
Atlantic City is home to various sports teams, including the Atlantic City Blackjacks of the National Arena League (NAL), a professional indoor football team. Additionally, the Atlantic City Surf, a minor league baseball team, previously operated in the city.
In terms of colleges and universities, Atlantic City doesn’t have any institutions within its immediate vicinity. However, Stockton University, which is part of the New Jersey state system, has a campus located in nearby Galloway Township.
Crime Rate
While crime rates can fluctuate, it’s worth noting that Atlantic Cityhas experienced some challenges with crime in the past. However, efforts have been made to improve safety and security in the city. It is advisable for visitors and potential investors to stay informed about current crime rates and take necessary precautions to ensure their well-being.
Visitors and Tourist Attractions
Atlantic City attracts visitors from various locations, both domestically and internationally. The specific data on visitor demographics and origin is not provided in the given information.
As a renowned tourist destination, Atlantic City offers a plethora of attractions. The city’s iconic boardwalk is a major draw, featuring a wide array of shops, restaurants, and entertainment venues. Additionally, Atlantic City is famous for its numerous casinos, which offer gambling, live shows, and upscale dining experiences. Other notable attractions include the Steel Pier amusement park, the Absecon Lighthouse, and the Atlantic City Aquarium.
Peak Season
The peak season in Atlantic City typically aligns with the summer months, from June to August. During this time, visitors flock to the city to enjoy the beach, boardwalk, and various entertainment options. The warm weather and a vibrant atmosphere make it an ideal time for vacationers and tourists to explore all that Atlantic City has to offer.
Conclusion
Atlantic City, NJ, presents a promising market for short-term rentals, with appreciating home values and a growing supply of rental properties. Despite the current occupancy rate and potential expenses such as property taxes, the market offers an attractive gross yield for investors. Moreover, with investor-friendly short-term rental regulations and potential future developments, the industry is poised for further growth.
As a destination, Atlantic City offers a diverse range of attractions, from its renowned boardwalk and casinos to its vibrant entertainment scene. While being mindful of certain factors such as crime rates, investors and visitors can find opportunities to enjoy the city’s offerings and contribute to its dynamic economy.
Overall, the short-term rental market in Atlantic City, NJ, showcases promising potential, making it an intriguing option for those seeking investment opportunities in the real estate and hospitality sectors.
