Gatlinburg, Pigeon Forge, TN Now The # 2 Market For New Short Term Rental Listings
NASHVILLE, Tennessee (WKRN) – Investors are heading east, buying or building properties in Gatlinburg and Pigeon Forge for rent.
Data shows that short-term rental occupancy levels in this region have skyrocketed, ranking second in the new short-term rental listing market for the past two years.
“Because there is more demand, people can charge a higher price,” said Pam Knudsen, senior director of compliance at Avalara.
Avalara is the first and only tax collection and remittance software used by Airbnb, VRBO, HomeAway, and virtually all of the major regional and national vacation rental platforms.
Investors are taking notice of the growth. The owner of Stony Brook Cabins showed News 2’s sister station, WATE, a new 7,000 square foot rental home in Bluff Mountain with 8 bedrooms, 7 bathrooms – at a cost of $ 2.5 million.
If you book it for the week before Christmas, with all the additional fees and taxes, it will cost you around $ 14,000.
“The average growth in rental income is just over $ 47,000, so it’s really one of those things that says it’s a good market to enter because it’s growing and affordable. and everything else right now, ”Knudsen said.
Short-term rentals at Gatlinburg and Pigeon Forge have increased by more than 19% in the past two years.
“People start to look and say ‘hey can I potentially do that with my second home’ or ‘can I now afford a second home because I can rent it out for a lot of the time. year to help pay it off and compensate it, ”Knudsen said.
According to AirDNA data, there are nearly 4,000 active rentals in Gatlinburg. This same data shows that there are just over 6,000 in all of Davidson County.
Nationally, travel demand in September was 4.7% higher than in 2019 and 33.7% higher than the same period last year. Short term rental rates and occupancy rates are expected to rise even more during this holiday season.
“The holidays are a hot time of year, they are very reserved,” Knudsen said. “If you haven’t booked it already, you might not find a place.
And if you do, expect to pay a pretty penny. High levels of booking activity have pushed rates even higher for this holiday season. Overall, ADRs are around $ 346 a night for Thanksgiving weekend and $ 415 a night for Christmas through New Year’s Eve week. These rates are 30% higher than customers paid in 2019.