Introduction
Mammoth Lakes, California, known for its stunning natural beauty, is a popular destination for outdoor enthusiasts year-round. From the world-class skiing and snowboarding in the winter to the breathtaking hiking and fishing opportunities in the summer, Mammoth Lakes has something for everyone. As a result, the short-term rental market in this picturesque town has been thriving in recent years. In this blog post, we’ll explore the current state of the Airbnb and short-term rental market in Mammoth Lakes, using data and insights to understand the trends and factors driving this market. Additionally, we will delve into the local demographic and tourism landscape to provide a comprehensive overview of the area.
Market Overview
To gain a better understanding of the short-term rental market in Mammoth Lakes, let’s explore some important data points.
Supply
As of October 2024, the most popular homes are 2-bedroom homes, comprising 24.91% of inventory. This is followed by 1 and 3-bedroom homes at 24.24% and 22.34% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Mammoth Lakes experienced an depreciation of -0.18%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Mammoth Lakes have depreciated by -0.18%. The median home value in Mammoth Lakes is $793,500 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, Mammoth Lakes boasts a significant Airbnb rental market, with approximately 2,955 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
The median ADR for the market is $310 .The Average Daily Rate is the highest for 5-bedroom homes $424 followed by 4-bedrooms and 3 bedrooms at $341 and $329 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 55.65% for Airbnb rentals in Mammoth Lakes. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Mammoth Lakes ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.16 in Mammoth Lakes. This figure suggests that short-term rentals in the city offer a favorable return on investment. Mammoth Lakes is ranked #80 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Mammoth Lakes earn an average of $37,578 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Average Gross Yield
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 4.74% in Mammoth Lakes. This figure suggests that short-term rentals in the city offer a favorable return on investment.
Hosts
Property management firms dominate the market. The largest host is RedAwning with 4.59% of the total inventory and an average review of 4.46 ⭐️s.
Property Tax
According to SmartAsset, the average property tax in San Diego is 0.72%. 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 Mammoth Lakes come from California and are within driving distance. 17% of all guests are from Los Angeles followed by San Diego with 7%.
Regulations
Mammoth Lakes 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.
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Local Demographics and Tourism Landscape
To better understand the dynamics of the short-term rental market in Mammoth Lakes, it’s crucial to consider the local demographics and tourism patterns.
Median Household Income
The median household income in Mammoth Lakes, CA, is a significant factor influencing the demand for short-term rentals. A higher median income generally implies a greater ability to afford vacation accommodations.
Climate
Mammoth Lakes enjoys a four-season climate, with cold winters for skiing and warm summers for outdoor activities. The diverse climate contributes to year-round tourism.
Population Size
Mammoth Lakes is a relatively small town, with a population of approximately 8,100 residents. The town’s size allows it to maintain its pristine natural beauty, making it a sought-after destination.
Visitors and Tourism
Mammoth Lakes attracts visitors from various locations, with a significant number of tourists coming from nearby cities in California. The total number of visitors varies seasonally, with peaks during the winter and summer months.
Sports Teams and Colleges
Mammoth Lakes is not home to major sports teams or colleges, which further highlights its appeal as a peaceful retreat.
Local Attractions and Peak Seasons
Understanding the attractions and peak seasons in Mammoth Lakes is crucial for hosts in the short-term rental market.
Tourist Attractions
Some of the most prominent tourist attractions in Mammoth Lakes include the Mammoth Mountain Ski Area, Devils Postpile National Monument, and the Mammoth Lakes Basin. These natural wonders draw visitors from around the world.
Peak Season
The peak season in Mammoth Lakes typically occurs during the winter months when skiers and snowboarders flock to the area. However, the summer season also sees a significant influx of visitors, thanks to hiking, fishing, and other outdoor activities.
Conclusion
The Airbnb and short-term rental market in Mammoth Lakes, CA, is robust and dynamic, offering lucrative opportunities for property owners. Despite fluctuations in the housing market, the demand for vacation rentals remains strong, thanks to the town’s natural beauty and year-round outdoor activities. Hosts can capitalize on the town’s appeal to generate significant rental income. As the market evolves, it will be essential to stay informed about housing trends and visitor patterns to make the most of this thriving short-term rental market.
