Florida Continues To Dominate The Vacation Rental Market

Vacation rental
Florida continues to top the charts for vacation rentals!

Florida’s reputation as a vacation paradise is nothing new. But according to a recent study by Clever Real Estate, the Sunshine State isn’t just a popular destination – it’s the undisputed champion of the vacation rental market. To determine the top vacation rental markets for 2024, this study analyzed the top 50 biggest metro markets throughout the country. We discuss the results below.

The top vacation rental markets

To determine the top rental markets for vacationers in the country, the following parameters were used to score each city:

  • 4x: Median home sale price 
  • 4x: Rabbu return-on-investment (ROI) score
  • 3x: Occupancy rate
  • 3x: Average annual revenue for property owners
  • 3x: Property value change in the last five years
  • 2x: Google search volume for terms related to short-term rentals
  • 1x: Rabbu’s percentage of listings suitable for Airbnb
  • 1x: Zillow current property values
  • 1x: Number of total listings 
RankCityMedian Sale PriceTotal Listings% Suitable as AirbnbsAverage ROI Score
1.Tampa, FL$362,43216,0202.06%50
2. Orlando, FL$375,63611,0255.63%49
3.Jacksonville, FL$333,9197,8071.90%49
4.Boston, MA$631,5425,4970.22%59
5.Miami, FL$441,24340,5042.64%45

The study highlights Florida’s robust vacation rental industry, boasting a compound annual growth rate (CAGR) of over 5%. This means the market has been steadily expanding year after year, attracting both tourists and investors.

What makes Florida a vacation rental powerhouse?

  • Tourist Treasure Trove: With endless sunshine, pristine beaches, world-class theme parks, and vibrant cities, Florida offers something for everyone. This diversity keeps tourists flocking back, fueling the demand for vacation rentals.
  • Thriving Short-Term Rental Market: Platforms like Airbnb and Vrbo have made vacation rentals more accessible than ever. Florida, with its abundance of vacation homes and condos, has become a prime target for these short-term rentals.
  • Economic Powerhouse: The vacation rental industry is a significant contributor to Florida’s economy. Studies show Airbnb alone generated a whopping $387 million in taxes for the state in 2023.

Summary

If you’re considering investing in an income-producing property, Florida might be the golden ticket. With its booming tourism industry and a constantly growing vacation rental market, the Sunshine State offers a promising investment opportunity.

Florida’s vacation rental market shows no signs of slowing down. With its ever-growing popularity and strong economic fundamentals, the Sunshine State remains a prime target for investors seeking a slice of the vacation rental pie. By carefully considering the market and implementing strategic planning, you can position yourself to capitalize on this thriving industry.

Are you thinking about investing in an investment property? At Live South Florida Realty, Inc., we have assisted many clients with their real estate investment portfolio. Contact Natasha for a free consultation today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.