Short-term rentals are an ideal investment for anyone looking for high rental income and a good return on investment. As Airbnb continues its meteoric rise, demand for these properties will remain strong in the foreseeable future. But like everything in real estate investing, generating a profit from a short-term rental property is only possible if you invest in the right location.
A good example of such a location is Panama City Beach, Florida. So what are some of the trends that impact the profitability of Panama City Beach vacation rentals? And what should you consider when investing in Panama City Beach real estate?
In this article, we will give you a detailed overview of Airbnb Panama City Beach and make the case for why it is the perfect investment for you.
The Reasons Why You Should Consider Investing in Airbnb Panama City Beach
The Panama City Beach real estate market has a lot going for it. In fact, it is one of the hottest markets in the state of Florida. The economy is as strong as ever and demand for income property in Panama City Beach has never been higher. This is especially the case when it comes to Panama City Beach vacation rentals.
Let’s take a look at some of the factors that make Airbnb Panama City Beach such a viable investment.
1– Panama City Beach Airbnb laws are very lax
Airbnb regulations are an important variable to consider when investing in short-term rentals. Any area that restricts this activity by requiring the presence of the owner or imposing very strict zoning laws is not an ideal short-term rental market.
As far as the Panama City Beach housing market is concerned, the local authorities have taken a hands-off approach when it comes to regulating short-term rentals. And with the general changes that may take place soon for the Airbnb Florida market as a whole, non-owner occupied rentals may actually see growing support.
As a result, Panama City Beach real estate investors will be able to focus on managing and marketing their Airbnb property instead of worrying about potential legal issues.
Related: Is Airbnb a Good Investment Considering All of the Regulations?
2- Airbnb is profitable in the Panama City Beach real estate market
Mashvisor’s Airbnb analytics shows that investing in Panama City Beach vacation rentals is very profitable:
- Median Listing Price: $385,711
- Price per Square Foot: $290
- Monthly Airbnb Rental Income: $3,141
- Airbnb Cash on Cash Return: 3.4%
- Airbnb Occupancy Rate: 60%
3- The area boasts a wide range of amenities
One of the main reasons why you should consider making a Panama City Beach real estate investment is the sheer variety of amenities that the area boasts. Relative to its population, the city has an impressive number of facilities and its overall infrastructure is impeccable.
Most notably, Panama City Beach boasts a considerable amount of open space and parks, which is something tourists usually appreciate. Needless to say, the plethora of amenities bodes very well for the profitability of Panama City Beach short-term rentals.
4- The city has many attractions that bring tourists
The wide range of Panama City Beach attractions guarantees a constant influx of tourists to the area. It goes without saying that the strong tourism industry is beneficial to real estate investors who own Panama City Beach rentals. Here are the main attractions that help drive demand for Airbnb Panama City Beach:
- Sea Dragon Pirate Cruise: A treasure hunting themed adventure geared towards kids.
- Seacrest Wolf Preserve: This is a wolf sanctuary that allows families to interact with wild wolves.
- Gulf World Marine Park: A marine show that features an interactive stingray tank.
- Panama City Beach Winery: A great place for wine tasting and socializing between adults.
After going over why you should invest in Airbnb Panama City Beach, let’s now delve into a brief overview of the city’s real estate market.
Panama City Beach FL Real Estate Market Overview
Before investing in a Panama City Beach investment property, you should first have an idea of how the market is at the moment and how it will be in 2020. This will allow you to set realistic objectives and approach your Panama City Beach real estate investing in a data-centric manner. Here are some key points that you need to keep in mind when investing in Airbnb Panama City Beach FL.
1- Panama City Beach is a seller’s market
Due to the high demand for Panama City Beach rental properties, the market currently favors sellers. Unlike a buyer’s market, a seller’s market is characterized by low inventory and a fast pace of sales. In order to navigate these markets, working with an experienced real estate agent is highly advisable.
Additionally, you should consider using advanced investing tools when looking for Panama City Beach houses for sale. The Mashvisor Rental Property Finder is a good example of such a tool.
Related: Is It a Buyer’s Market or a Seller’s Market?
2- The economy is strong
The strength of the local economy is a major factor in the success of a real estate investment. In the case of Airbnb Panama City Beach, the local housing market is anchored by a particularly strong economy. In fact, the city outperforms the national average in virtually every economic metric.
For example, jobs in the city are expected to grow at a rate of 34.3% over the next ten years. By comparison, the national growth rate for the same period will be around 33%. Other positive indicators that should prompt you to invest in Airbnb Panama City Beach include a low tax rate and an overall diverse job market.
3- Home values will continue to appreciate
High rental income is not the only thing that you can look forward to when you invest in Panama City Beach vacation rentals. In fact, you can also expect a steady appreciation in home value. According to Zillow’s recent data, home values will increase by almost 5% within the next year.
Related: 6 Things to Know About Real Estate Appreciation
4- Real estate development will continue its expansion
The future outlook of a real estate market is directly tied to the rate of property development in the area. Like many cities in the Florida housing market, Panama City Beach has a lot of space and development is not expected to slow down anytime soon. The healthy property development rate will help sustain the market and satisfy the ever-increasing demand for Panama City Beach vacation rentals.
How to Find Airbnb Investment Properties in Panama City Beach
As mentioned, the best way to start your search for investment property in the Panama City Beach housing market is with Mashvisor’s Rental Property Finder:
To give you an idea of the profitable Airbnb Panama City Beach properties you can find with this real estate investment tool, here is the data for a few active listings:
- List Price: $85,000
- Airbnb Cash on Cash Return: 16%
- List Price: $192,000
- Airbnb Cash on Cash Return: 10%
- List Price: $129,000
- Airbnb Cash on Cash Return: 10%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes!
The Bottom Line
As you can see, investing in Panama City Beach condos, apartments, or beachfront houses and renting out on a short-term basis is a highly profitable strategy. All trends point to a bright future for the market and investors stand to profit from both appreciation and high rental income.
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