A mixture of coastline cities and rural areas, Connecticut is one of the most populated states in the USA. The state is located in New England however its boundaries have been blended with the coastal areas. Agriculture, tech, and manufacturing are key departments that are supporting the economy of this state. You cannot neglect the hefty $5 billion annual generation by the tourism and film industry of the state. In between all these things, the Connecticut short term rental market is also a suitable place for your investments.
The presence of some unique places such as the Mystic Seaport Museum and the beautiful coastline is attracting a huge number of visitors every year. Similarly, the population of Connecticut is more than 3.6 Billion. It is ranked 29th in population but 48th on the basis of area in the USA. So this factor could make your investment in the Connecticut market the right decision.
But when you plan to invest in a place, you want to know more success factors as well. Knowing these factors will help you to understand your chances of success. It will make you choose the right place for investment. Let’s explore those other factors as well that create more success opportunities for investors in the Connecticut market.
Success Factors Behind the Connecticut Short Term Rental Investment
High Taxes
Tax rates are pretty high in Connecticut. Property taxes are considerably high. The effective property tax rate is just above 2 percent which is not acceptable for everyone. It’s the 4th highest property tax rate in the whole United States. Not everyone can afford that tax and prefer to live in rental homes instead of buying their own. Therefore, the Connecticut rental market keeps on developing every day.
The rise in Property Rates
Property rates are on a surge in Connecticut. The median value of property in Connecticut is way higher than the national value. During the past few years, the prices have increased by almost 5%. And this rise has not stopped yet. It may go around a further increase of 4% this year. High property rates make it difficult for people to get their own property. This will create the need for rental homes that makes the Connecticut market a suitable place for investment.
Tourists
Tourists all across the globe come here to see some amazing natural beauty. The chances of finding American history in the towns of Connecticut are also attracting visitors. This high number of tourists makes it suitable for you to invest in the Connecticut rental market in the touring season.
Rental Data Analysis of Some Top Places in Connecticut
Going through the rental data analysis of some top places will help you to find the right place to invest in the Connecticut market. So, let’s start exploring this data analysis.
1. Brooklyn
Home to an agricultural fair, some historical things, and helpful people, Brooklyn is a really nice place to live. Here is the rental data analysis of the Brooklyn.
- The total occupancy rate is 70%
- The average daily rate is $125. However, the rate in February is the highest at $415.
- Rental demand is maximum for private rooms instead of entire homes.
- There are only 10 active rentals in Brooklyn.
2. Portland
Portland is a town in Middlesex County of Connecticut. Being a very short town, it lacks personal properties. So, people who visit it or come to live usually opt for a rental home, making the Portland a good investment option.
3. New Haven
Home to the world-famous Yale University, New Haven is an iconic place in the Connecticut short term rental market.
- The average occupancy rate is 71% which will be 87% in August.
- The average daily rate is about $180.
- Traditional rental income is more than $1900
- The main thing that makes the New Haven market a successful place for investment is ROI which is pretty high at more than 4%.
- 1 and 2-bedroom homes are in high demand.
4. Stamford
The Stamford market has a lot to offer you. Its rental data analysis shows some excellent trends.
- The average occupancy rate is 63% which will be higher when visitors start arriving.
- The average daily rate is $195.
- Return on investment is pretty high as it is always something between 2 to 3 percent.
- There are more than 170 active rentals present in Stamford.
- 82% of total rental demand is for entire homes only. This demand is higher for 1 bedroom homes.
- Traditional rental income in Stanford on a single rental property is about $2400-2500.
5. Manchester
Silk City, Manchester is a well-known name in the Connecticut short term rental market. It is the home of the world’s biggest silk factory, so understand why we called it the silk city. Apart from manufacturing, the Manchester market is also a good place for many investors. Let’s have a look at its rental data analysis.
- The average occupancy rate is at a staggering percentage of 81. The rate is highest in April, with 100% occupancy.
- The average daily rate is $137-150.
- ROI ratio is pretty acceptable at about 1.5 to 1.8 percent.
- The average total rental income per property will be about $1300.
6. Bristol
You may never know but one of the world’s famous sports channels, ESPN is based in Bristol. But ESPN does not broadcast the rental data analysis of the Bristol which could bring a lot of opportunities for young entrepreneurs or investors. We have brought this data to you.
- The average occupancy rate is 70%, which will be around 90% in February.
- The average daily rate is about $90.
- ROI ratio is about 3 percent. But if you choose the right property it will go up to 7% or even higher.
- Rental demand is about84 with 82% of it being only for entire homes.
- It has been showing 27% quarterly growth.
7. Greenwich
This Greenwich is not like the one in the UK but still, it’s one of the richest cities in the USA. The Greenwich rental investment could help you to earn some hefty seasonal amount.
- The average occupancy rate is 71%.
- The average daily rate is around $279.
- The return on investment ratio is about 1.3 or 1.4%.
- Rental demand is high for entire homes.
Final Words
Now you know why investment in the Connecticut short term rental market is worth it. The high number of visitors in cities like Greenwich and Stamford and the high ROI ratio in Bristol and New Haven are producing some amazing opportunities for you. Find a suitable place to invest in real estate in Connecticut and start earning some good profits.
Go ahead, take a peak in the online app!
