Are you wondering how the Savannah real estate market and Airbnb Savannah are doing? Well, this blog is your way to find out. Although Airbnb rentals are unquestionably almost the best short-term investment strategy in the real estate investment industry due to the flexibility, easy accessibility and high demand from Airbnb guests and tenants, not all locations are guaranteed to bring real estate investors a successful and lucrative return on investment and cash flow. The success of the different types of real estate investments depends heavily on the market situation. For example, Airbnb investment and co-living buildings are not as successful in Fairfax, Virginia as they are in New York City. Therefore, to know whether Airbnb Savannah rental properties are a good investment in 2018 or not, we need to check on the Savannah real estate market, buyers’ and sellers’ behavior in this market, and how to make money through investing in Airbnb Savannah.
Are you wondering why rental properties are the best cash flow investments in the real estate market? Read Rental Properties- The Best Cash Flow Investments
Airbnb Savannah: Savannah Real Estate Market 2018
The real estate market is always connected with the economy of the city or state: the better the economy in terms of average income, employment opportunities and tourism, the better the real estate market will become. Savannah’s economy is increasing quickly, taking into account the flourishing tourism industry as tourism in Savannah is an active and rapidly growing segment of the economy. The city’s attractiveness as a visitor destination is enhanced by its charming historic district, accommodations, and accessibility. It is worth mentioning that in 2003, Savannah’s nearly six million visitors spent $1.542 billion, supporting nearly 16,000 jobs locally. Moreover, labor costs in Savannah, Georgia are low and union activity is minimal. The population is growing and the number of jobs is increasing, especially in the service sector. This is actually a great indicator that Airbnb Savannah properties are a successful and lucrative investment for real estate investors and beginner investors in specific.
Median house price: $416,362
Airbnb Savannah rental income: $2,333
Airbnb Savannah cash on cash return: 3.16%
Airbnb Savannah cap rate: 3.16%
Airbnb Savannah occupancy rate: 59.7%
By analyzing the above-mentioned figures from Mashvisor’s investment property calculator, we conclude that Airbnb Savannah in 2018 is definitely a smart real estate investment choice for real estate investors because the median house price is average and affordable compared to other states such as New York or California.
Keep in mind that traditional or long-term rentals are also a lucrative real estate investment as Savannah traditional rental income is $1,279, the traditional cash on cash return is 1.82% and the cap rate is also 1.82%. Note that cash on cash return and cap rate are the same figures because Mashvisor’s investment property calculator assumes that the property purchases are all cash until an investor enters his/her unique information.
It is a must for real estate investors to know how to conduct real estate market analysis. Therefore, make sure to check out A Step-By-Step Guide to Real Estate Market Analysis
Airbnb Savannah 2018
The number of properties that can be used as Airbnb properties in Savannah is quickly decreasing after the passage of new restrictions on the industry in 2017, as industry representatives criticize a last-minute change to the revised ordinance they said cut the number of available permits in half.
The revisions to the ordinance approved by the Savannah City Council limits the amount of vacation or Airbnb rentals to 20 percent of the parcels in a ward in residential zoning districts. As of Oct 2017, 24 of the 42 regulated wards had reached the cap, leaving 102 parcels available for use as Airbnb Savannah or vacation rentals, according to city officials. The change, which was approved in a 5-3 vote increased the number of existing rentals in a ward and decreased the number of potential properties that could be operated as non-occupied vacation rentals.
It is worth mentioning that the ordinance revisions were developed by city staffers, residents and industry representatives in response to concerns of the Savannah City Council and community members about the growing number of rentals operating in the city and their impact on the amount of long-term residential properties available. Still, purchasing Airbnb properties can actually be an optimal rental strategy in Savannah in 2018 and is one of the best investment properties that real estate investors can take.
Are you interested to know the things that you need to take into consideration before buying an Airbnb investment property? Make sure to read Four Things to Consider Before Purchasing an Airbnb Investment Property.
Finding Airbnb Savannah Properties: Mashvisor’s Property Finder
Using a range of metrics and real estate comps, Mashvisor’s property finder makes it easier than ever for real estate investors to find Airbnb properties at their fingertips. It provides you with a list of properties in a certain neighborhood, city or area you are interested in, in the US housing market. Mashvisor’s property finder shows a list of properties alongside their potential of returns taking into consideration the information you entered that shows your budget and real estate property type in order to customize your search and gives you the best options that suit your real estate plans and budget.
To start looking for and analyzing the best investment properties in Savannah and neighborhood of choice, click here.
Bottom Line
In any real estate market including the Savannah real estate market, the question of whether Airbnb rentals is a lucrative investment or not has different dimensions and depends heavily on the economic situation of the market, its population, the number of annual visitors, and median property prices. Finding the right Airbnb property is the hardest and most important step towards a successful investment. Therefore, using effective property finder tools such as Mashvisor’s investment property finder does not only help you in finding the property of your choice but also gives you a general idea in regard to property prices in the housing market.
To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.