Introduction
Pompano Beach, FL is a beautiful coastal city located in Broward County, Florida. It is a popular tourist destination due to its sandy beaches, crystal-clear waters, and laid-back atmosphere. The city is also attracting real estate investors who are capitalizing on the short-term rental market in Pompano Beach, FL. In this article, we will discuss the various aspects of the short-term (Airbnb) rental market in Pompano Beach, FL, including the growth in supply, the performance of the rental market, and the regulatory environment.
Market Overview
To understand the dynamics of the short-term rental market in Pompano Beach, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 30.15% of inventory. This is followed by 2 and 1-bedroom homes at 24.62% and 23.28% of the total inventory, respectively.
Homes Appreciation
As of November 2024, according to Zillow, homes in Pompano Beach experienced an depreciation of -0.71%. This data indicates a significant decrease in property values.
Median Home Value
As of November of 2024, Homes in San Antonio have depreciated by -0.71%. The median home value in Pompano Beach is $360,900 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 November 2024, Pompano Beach boasts a significant Airbnb rental market, with approximately 910 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 $293. The Average Daily Rate is the highest for 5-bedroom homes ($580) followed by 4-bedrooms and 3 bedrooms at $480 and $400 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 52% for Airbnb rentals in Pompano Beach. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in San Antonio ?
As of November 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 11.84% in San Antonio. This figure suggests that short-term rentals in the city offer a favorable return on investment. Pompano Beach is ranked #40 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Pompano Beach earn an average of $42,911 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Pompano Beach is 1.00%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Pompano Beach’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.
Top Places for Airbnb in Pompano Beach
Pompano Beach top submarkets for Airbnb investments include areas like ZIP code 33060, which has the highest gross yield at 11% and an annual revenue of $48,648. In contrast, ZIP code 33062 offers more extensive opportunities with 1,314 full-time listings, but a lower gross yield of 6%.
Home values also vary significantly, with properties ranging from $502K in 33062 to $263.2K in 33069, making each submarket unique in terms of investment potential and entry cost.
Hosts
The market is dominated by property management firms. The largest host is RoomPicks with 4.53% of the total inventory and an average review of 4.90 ⭐️s .
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Population and Median Household Income
According to the US Census Bureau, the population of Pompano Beach, FL is 112,806. The median household income in the city is $56,109. The city has a diverse population, with a mix of locals and visitors from different parts of the world.
Guests
The majority of the guests come from outside of Florida. 4.46% of all guests are from New York followed by Fort Lauderdale with 2.88%.
Climate
Pompano Beach, FL, enjoys a tropical climate with an average temperature of 75°F. The city experiences long, hot summers and mild winters. The average high temperature in the summer is 90°F, while the average low temperature in the winter is 59°F. Pompano Beach, FL, is known for its sunny and warm weather, making it an ideal destination for beach lovers.
Sports Teams and Colleges
Pompano Beach, FL, is home to several sports teams, including the Pompano Beach Piranhas, a professional swim team, and the Pompano Beach Baseball Club, a youth baseball league. The city also has two colleges, Florida College of Natural Health and Cross International Training Center.
Crime Rate
The crime rate in Pompano Beach, FL is higher than the national average. According to NeighborhoodScout, the city’s crime rate is 34 per 1,000 residents. However, the city has taken measures to improve its public safety, including investing in more police officers and installing surveillance cameras.
Tourism
Pompano Beach, FL is a popular tourist destination, attracting visitors from different parts of the world. The city is famous for its stunning beaches, clear water, and water activities, such as fishing, snorkeling, and scuba diving. Visitors can also enjoy a variety of cultural and recreational activities, including museums, parks, and live music.
Visitor Statistics
According to Visit Florida, the number of visitors to Pompano Beach, FL in 2019 was 1.12 million. The majority of visitors came from within the United States, with a significant number coming from Canada and Europe.
Tourist Attractions
Pompano Beach, FL has several attractions that draw visitors to the city. One of the most popular attractions is Pompano Beach Pier, where visitors can enjoy breathtaking ocean views, fishing, and shopping. Another attraction is the Pompano Beach Amphitheater, which hosts concerts, festivals, and other events throughout the year. The Butterfly World and the Pompano Beach Cultural Center are also popular tourist attractions.
Peak Season
The peak season in Pompano Beach, FL is from November to April, when the weather is mild and sunny. During this time, visitors can enjoy various outdoor activities, such as water sports and beach activities. The off-season is from May to October, the city’s rainy season, with frequent thunderstorms and high humidity.
Conclusion
Pompano Beach, FL, offers a lucrative investment opportunity for Airbnb rental investors. The supply growth, the impressive performance of the short-term rental market, and the investor-friendly regulatory environment are all factors that make Pompano Beach an attractive location for short-term rental investment. As the city continues to attract more tourists, we can expect the short-term rental market to continue to grow, providing investors with a profitable investment opportunity.
