Galveston, TX, located in Galveston County, is a popular vacation destination for many tourists seeking sun, sand, and sea. With its beautiful beaches, numerous attractions, and rich history, it’s no surprise that the (Airbnb) short-term rental market in Galveston is thriving.
In this blog post, we will explore some key data points about the short-term rental market in Galveston, including its growth, revenue, and regulations.
Market Overview
To understand the dynamics of the short-term rental market in Galveston, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 35.23% of inventory. As of October 2024. this is followed by 2 and 4-bedroom homes at 21.59% and 19.9% of the total inventory, respectively.
Annual Revenue
According to Chalet, short-term rentals in Galveston earn an average of $28,288 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Active Short Term Rentals
As of October 2024, Galveston boasts a significant Airbnb rental market, with approximately 4,307 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
As of October 2024. the median ADR for the market is $275. The Average Daily Rate is the highest for 5-bedroom homes ($358) followed by 4-bedrooms and 3 bedrooms at $324 and $263 respectively.
Regulations
Galveston’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.
How profitable is Airbnb in Galveston ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.14% in Galveston. This figure suggests that short-term rentals in the city offer a favorable return on investment. Galveston is ranked #39 by return on investment on Airbnb rentals in the United States.
Property Tax
According to SmartAsset, the average property tax in Galveston is 1.62%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Homes Appreciation
As of October 2024, according to Zillow, homes in Pigeon Forge experienced an depreciation of -2.35. This data indicates a significant decrease in property values.
As of October of 2024, Homes in Galveston have depreciated by -2.35%. The median home value in Galveston is $347,549 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Occupancy Rate
Chalet data reveals an occupancy rate of 50.87% for Airbnb rentals in Galveston. This high demand ensures a consistent stream of income for property owners and investors.
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Median Household Income and Climate
In addition to the short-term rental market data, we must also consider the median household income and climate in Galveston, TX. According to the U.S. Census Bureau, the median household income in Galveston is $52,899, which is lower than the national median household income. As for the climate, Galveston experiences hot and humid summers and mild winters, with an average temperature of 77 degrees Fahrenheit.
Top Places for Airbnb in Galveston
Galveston’s top submarkets for Airbnb investments include areas like ZIP code 77551, which has the highest gross yield at 9% and an annual revenue of $25,239. In contrast, ZIP code 77554 offers more extensive opportunities with 3,132 full-time listings, but a lower gross yield of 7%.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Texas with 4.56% of the total inventory and an average review of 4.46 ⭐️s .
Population Size
According to the U.S. Census Bureau, the population size of Galveston, TX, was 49,935 as of 2020. This figure includes both permanent residents and seasonal residents who own vacation homes in the city.
Sports Teams
While Galveston does not have any major professional sports teams, it does have several recreational sports leagues and events throughout the year. For example, the city hosts the annual Sand Crab 5K/10K Run and Walk, which is a popular event for locals and visitors alike.
Guests
The majority of the guests come from inside of Texas. 16.55% of all guests are from Houston followed by Austin with 5.59%.
Colleges
Galveston is home to several colleges, including Texas A&M University at Galveston and Galveston College. Texas A&M University at Galveston is a branch campus of Texas A&M University, and it focuses on marine and maritime studies.
Crime Rate
According to NeighborhoodScout, the overall crime rate in Galveston, TX, is higher than 91% of U.S. cities. However, the city’s crime rate has been declining recently, and local law enforcement agencies are working hard to keep residents and visitors safe.
Visitor Statistics
Galveston is a popular destination for tourists from around the world, with many visitors coming from within Texas and neighboring states. According to the Galveston Island Convention and Visitors Bureau, the total number of visitors to the island was 7.5 million in 2019.
Biggest Tourist Attractions
There are many tourist attractions in Galveston, including:
- Galveston Island Historic Pleasure Pier: A family-friendly amusement park with rides, games, and food.
- Moody Gardens: An educational and entertaining complex featuring a rainforest, aquarium, and other attractions.
- The Bryan Museum: A museum that showcases the history and culture of Texas and the American West.
- Galveston Island State Park: A beautiful park that offers camping, fishing, and other outdoor activities.
- The Strand Historic District: A historic district with unique shops, restaurants, and attractions.
Peak Season
The peak season in Galveston, TX, is during the summer months, from June through August, when the weather is warm and sunny. However, the city also attracts many visitors during the fall and winter months, thanks to its mild climate and holiday events.
Conclusion
The short-term rental market in Galveston, TX, is thriving, with significant growth in the supply and appreciation of homes. Investors looking to enter the market can potentially earn a high gross yield with relatively low property taxes. Short-term rental regulations in Galveston are generally favorable to investors but with zoning restrictions. As with any investment, you must do your due diligence and consult with local professionals to ensure compliance with all applicable laws and regulations.
