Introduction
Savannah, Georgia, a city renowned for its historic charm and Southern hospitality, has emerged as a popular destination for short-term rentals, particularly through platforms like Airbnb. In this blog post, we will delve into the lucrative short-term rental market in Savannah, shedding light on key statistics, market dynamics, and the factors that make this coastal gem a sought-after destination for both tourists and property investors.
Market Overview
To understand the dynamics of the short-term rental market in Savannah, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 28.46% of inventory. This is followed by 3 and 1-bedroom homes at 25.69% and 18.13% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Savannah experienced an appreciation of 5.52%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Savannah have depreciated by 5.52%. The median home value in Savannah is $318,100 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, Savannah boasts a significant Airbnb rental market, with approximately 3,171 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 $289. The Average Daily Rate is the highest for 5 bedroom homes ($439) followed by 4-bedrooms and 2 bedrooms at $408 and $367 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 59% for Airbnb rentals in Savannah. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Savannah ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 19.48% in Savannah. This figure suggests that short-term rentals in the city offer a favorable return on investment. Savannah is ranked #8 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Savannah earn an average of $39,822 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 Savannah is 1.01%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
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Regulations
Savannah’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.
To gain a comprehensive understanding of the short-term rental market in Savannah, it’s essential to consider the broader context of the city. Here are some additional key facts:
Demographics
Savannah, GA, has a median household income, but its value can fluctuate over time. This income level impacts the potential customer base for short-term rentals and is an important consideration for property investors.
Top Places for Airbnb in Savannah
Savannah’s top submarkets for Airbnb investments include areas like ZIP code 31415, which has the highest gross yield at 15% and an annual revenue of $22,045. In contrast, ZIP code 31404 offers more extensive opportunities with 336 full-time listings, but a lower gross yield of 11%.
Hosts
The market is dominated by property management firms. The largest host is Lucky Savannah with 4.72% of the total inventory and an average review of 4.72⭐️s .
Climate
Savannah enjoys a pleasant subtropical climate, with warm summers and mild winters. This favorable climate contributes to the city’s year-round appeal to tourists and vacationers.
Population
Savannah, GA, has a population size that varies over time, and it is essential to track these figures to assess the demand for short-term rentals.
Sports and Education
Savannah is home to various sports teams and colleges, making it a destination for sports enthusiasts and students alike. Proximity to sports events and educational institutions can be a selling point for short-term rental properties.
Guests
The majority of the guests come from inside of Georgia. 6.64% of all guests are from Atlanta followed by New York with 2.16%.
Crime Rate
Understanding the safety of a city is crucial when considering short-term rentals. Keeping an eye on Savannah’s crime rate is essential for the safety and satisfaction of your guests.
Attracting Visitors to Savannah
To thrive in the short-term rental market in Savannah, it’s vital to know your audience. Consider the following factors:
Visitor Demographics
Understanding where visitors come from and what they seek in Savannah can help you tailor your short-term rental property to cater to their needs.
Total Visitors
Keep an eye on the total number of visitors to Savannah to gauge the demand for short-term rentals and seasonal fluctuations.
Exploring Savannah’s Top Attractions
Savannah, Georgia, boasts a plethora of tourist attractions, including Forsyth Park, historic districts, ghost tours, and riverboat cruises. These attractions contribute to the city’s allure and the demand for short-term rental accommodations.
Peak Season
Savannah’s peak tourist season typically occurs during the spring and fall when the weather is most favorable. Short-term rental property owners can maximize their profits during these high-demand periods.
In conclusion, Savannah, GA, presents an enticing opportunity for those interested in the Airbnb or short-term rental market. With a growing supply of rentals, attractive returns, and a host of local attractions, it’s no wonder that investors and property owners are flocking to this picturesque Southern city. Whether you’re considering entering the market or planning a trip to Savannah, understanding the dynamics of the short-term rental industry and the city itself is crucial for a successful and enjoyable experience.
