Santa Rosa Beach. One of Florida’s best but lesser-known beaches. Its natural scenery and robust tourism industry make investing in Airbnb Santa Rosa Beach FL a viable option for investors who are looking to expand their real estate portfolio and generate additional income.
Investing in Airbnb Santa Rosa Beach FL: What Real Estate Investors Should Know
When it comes to real estate investments, one can never be too careful, even if the market is as charming and picturesque as Santa Rosa Beach. For this reason, we gathered some important information that can help potential investors make the most confident decision.
Santa Rosa Beach, Florida: The Breathtaking Bliss of the Sunshine State’s Emerald Coast
Santa Rosa Beach is one of 16 beautiful coastal neighborhoods in South Walton County, located in the Sunshine State’s northwestern region. The entire coastline boasts of clear sparkling green waters hence its nickname, Emerald Coast. It offers a pretty laid-back atmosphere that goes well with its Southern hospitality.
Geographically, Santa Rosa Beach is South Walton’s largest beach neighborhood, stretching from Choctawhatchee Bay in the north all the way to the Gulf of Mexico down south.
And because of its powdery white sandy beaches, breathtaking scenery, and turquoise waters, it continues to attract countless tourists and in-migrants, including celebrities and famous personalities who have made the scenic 30A their home.
What Is There to See in Santa Rosa Beach FL? Why Is It Worth Visiting?
What does Santa Rosa Beach offer tourists and in-migrants? Here are some of the most notable and outstanding things about this charming beach neighborhood:
1. Scenic Beauty of the Emerald Coast
Perhaps the best thing that attracts tourists to this hidden gem year in and year out is its natural beauty and surroundings. There are nice coastal cities, and then there’s Santa Rosa Beach on 30A. Its white sandy beaches, crystal clear emerald waters, and protected natural surroundings make a lot of visitors consider buying property and relocating here.
2. Historical Relevance
Aside from its breathtaking natural charm, Santa Rosa Beach is filled with a rich history. It is home to the historic Point Washington community where the Wesley Mansion – one of the very few treasures of the community – is found. The beachfront community was founded along Hogtown Bayou in 1910.
3. Arts and Culture
Santa Rosa Beach is considered by many as an arts hub along the 30A. From different art galleries and underwater museums to theater and music, the neighborhood is home to a diverse art scene that can be enjoyed by people from all walks of life.
4. Family-Friendly Activities
This coastal town has a little bit of something for everyone. On top of spending a fun day on the beach, Santa Rosa Beach has several activities that are perfect for families. Folks can explore fun shops and boutiques, ride a bike or go paddle boarding, take a boat ride or cruise out on the coast, go on tours and day trips, go fishing, or just chill and relax. This neighborhood has all types of visitors covered.
5. World-Class Cuisine
If all of those things still don’t convince you that Santa Rosa Beach is worth the trip, then its award-winning world-class cuisine will. Foodies will definitely go gaga over the wide variety of dishes and specialties 30A has to offer. From Mexican treats and Italian dishes to Japanese delicacies and local breweries, folks will always find something to satisfy their cravings.
Is Santa Rosa Beach FL a Good Location for an Airbnb Investment?
Making money in real estate typically involves either reselling properties or converting them into rentals. One of the surefire ways of getting a good return on investment in real estate is by converting a property into a vacation rental and getting it listed on Airbnb.
However, there are a lot of things to consider for an Airbnb rental strategy. Unlike traditional rentals, vacation homes do not provide the stability of rental payments on a regular basis.
On the other hand, most Airbnb rentals are found to earn up to three times more than what a landlord would from a long-term rental property. With that said, many investors would prefer an Airbnb Santa Rosa Beach FL to add to their existing portfolio.
There’s also the aspect of managing the home. Hiring a trustworthy property management team can help investors run the day-to-day operations without having to worry about bookings and maintenance. However, property managers require a certain fee to help run the business.
And then one must also consider what the local tourism is like? Is it strong enough to keep the property regularly booked? The success of a short term rental property depends on how often it is booked. Can the local tourism scene sustain the property’s operations and upkeep?
Lastly, an investor needs to find relevant information and accurate data about the neighborhood and the city the property is located in. What do the numbers show? Are the stats promising enough to move forward with the investment? Or do they imply that investors should look elsewhere?
Here are some of the important data that investors need to consider when investing in Airbnb Santa Rosa Beach FL:
Median Price
- January 2022: $1,180,406
- December 2011: $1,108,227
In just one month, there has been a huge increase in Santa Rosa Beach’s median rates. The $72,000-increase is brought about by several different factors but generally, the upward trend is quite common – and expected – with real estate investments. More increases are expected before the year ends. People who are seriously considering investing in Airbnb Santa Rosa Beach FL should start now before the prices go beyond their reach.
Average Price per Square Foot
- January 2022: $563 per sq. ft.
- December 2021: $533 per sq. ft.
One of the reasons why the median property price in Santa Rosa Beach went up significantly is the accompanying increase in prices per square foot. As real estate typically appreciates over time, expect the prices to continue to go up this year. As a result, investors should take action now before prices get too steep.
Days on Market
- January 2022: 84 days
- December 2021: 63 days
Days on market is a good indicator of whether a specific location is a seller’s or buyer’s market. The higher the DOM figure, the weaker the market. It means that the market is more favorable to buyers. On the other hand, the opposite is indicative of a seller’s market.
With the increase of 21 days in the average DOM, it shows that the market in January was weaker compared to how it was in December 2021. With that in mind, now is probably a good time for an investor to consider buying property for Airbnb in Santa Rosa Beach FL and add to their real estate portfolio.
Airbnb Listings
- January 2022: 198 listings
- December 2021: 230 listings
Airbnb demand has grown significantly over the past year since travel restrictions have eased. While the Florida housing market, in general, has somewhat been on the road to recovery, for some reason, Airbnb in Santa Rosa Beach FL has experienced a decline in listings. Several factors can be considered here, from pandemic-related factors to seasonal tourism matters.
However, investors can expect the demand to pick up once again in a few months, especially during the spring and summer seasons.
Airbnb Daily Rate
- January 2022: $272
- December 2021: $317
With the decrease in listings for the Airbnb Santa Rosa Beach FL market, the daily rental rate has also gone down. Daily rates tend to fluctuate due to several factors like peak and off-peak seasons, the law of supply and demand, and hosts or owners setting custom prices for their vacation rentals.
Airbnb Occupancy Rate
- January 2022: 58%
- December 2021: 47%
Occupancy for Airbnb in Santa Rosa Beach FL has increased by nearly 12% over the past month. The Airbnb occupancy rate will most likely continue to go up over the next few months as Santa Rosa Beach slowly approaches Florida’s busiest months, provided that travel restrictions continue to ease.
Monthly Airbnb Rental Income
- January 2022: $4,316
- December 2021: $3,365
Despite the nearly $50-decrease in Airbnb monthly rates, the average monthly income for Airbnb Santa Rosa Beach FL has gone up by nearly $1000 in just four weeks.
Airbnb Cash on Cash Return
- January 2022: 2.31%
- December 2022: 1.64%
An important metric that real estate investors use to see whether a particular market – in this case, the Santa Rosa Beach real estate market – is worth investing in is the cash on cash return. Good cash on cash return, according to real estate industry experts and insiders, is between 8% and 12%.
However, a lot of them also agree that properties that yield numbers like those are few and far between. The increase from 1.64% to 2.31% in four weeks shows there is good potential for vacation rentals in the location for 2022, particularly for an Airbnb Santa Rosa Beach FL.
Walk Score
- January 2022: 10
- December 2021: 10
Nothing much has changed by way of walk score for Santa Rosa Beach as it remains at 69. According to Redfin, having a walk score between 0 and 24 means that a car is needed to get around the city to get stuff done.
This huge dependency on cars may not be suitable for in-migrants or tourists who enjoy getting around on foot and having greater accessibility to different features and amenities that make life more convenient.
Real estate investing in Airbnb income property in Santa Rosa Beach requires careful planning and precise execution considering the numbers above, especially with a seven-digit median price for properties.
Investors must be willing to perform extensive due diligence to ensure they come up with the best short term rental strategy to help them achieve their investment goals in the Florida real estate market.
To guarantee a positive cash flow and an optimal return on investment, investors should make sure the math checks out. This is where an Airbnb calculator comes in handy.
his investment property calculator allows both experienced and first-time investors to analyze all the important data, including the ones above, and locate properties that suit their needs and fall into their investment criteria.
This tool has already saved numerous investors hundreds of hours and thousands of dollars in research and market analysis. Online real estate marketplace website, Mashvisor, has one of the best Airbnb calculators available today.
Mashvisor’s Airbnb Calculator Can Help Investors Analyze Airbnb Santa Rosa Beach FL Properties
What’s the Verdict? Is Santa Rosa Beach FL a Good Place for Airbnb Investment?
With the right data and strategies, investing in vacation rentals in the 30A can be very rewarding. Investors can easily access up-to-date and accurate real estate market data on Mashvisor to know if a certain location is worth the risk or not. With its own distinct charm and visual style, Santa Rosa Beach is a place that will continue to attract tourists and visitors from all over the country.
So, is an Airbnb Santa Rosa Beach FL worth investing in? Yes, it is. However, at the end of the day, the decision is still up to you. If the numbers add up and you’re confident with all the information you gathered, then Santa Rosa Beach FL is a good place to purchase a rental property in. Making the best investment decisions is easier to do as long as you do your homework.
If you are serious about real estate investments, then investing in Airbnb Santa Rosa Beach FL just might be for you. Just keep in mind that successful investment requires putting in the necessary work. It means performing your due diligence.
Do you have questions about Mashvisor? Read our FAQs and learn about our tools.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.