Research firm lists Port Angeles as a top investment for STRs

PORT ANGELES — Port Angeles ranks among the top 10 cities in the nation for short-term rental investment, according to a rental industry research firm.

According to research firm AirDNA, Port Angeles ranks No. 8 on their list of best places to invest in short-term rentals in 2024.

Port Angeles, “is a practical entry into real estate with an affordable typical home value of $390,480,” the report said. It can be found at https://www.airdna.co/best-places-to-invest-in-vacation-rentals

The University of Washington’s Center for Real Estate Research puts the median price of a home in 2023 at $474,100 for Clallam County and $636,000 for Jefferson County.

“Investors can appreciate its strategic location, close to the Port Angeles Fine Arts Center and the stunning Olympic National Park,” the report said.

“As the STR industry gets more and more competitive, choosing the right market and the right property is crucial,” said Jamie Lane, SVP of Analytics at AirDNA in a story published by PR Newswire.

“Our recent integration of homes for sale into the AirDNA platform opens up new avenues for investors all in one place, allowing them to discover, analyze, and even browse properties for sale in the most promising markets, fully tailoring AirDNA’s investor toolkit to their individual needs,” Lane said.

According to AirDNA’s list, Port Angeles has an occupancy rate of 64 percent; an average daily rate of $289 and an average annual revenue of $47,000.

“Port Angeles’s steady occupancy rate of 64.3% speaks to its popularity among outdoor enthusiasts and its reliability in the short-term rental market, making it an attractive starting point for short-term rental ventures,” AirDNA said.

AirDNA also has data for a much larger survey area extending as far west as Sappho and to Agnew in the east and includes a total of 565 listings — though many of those are duplicate listings advertised on more than one site — for an 18 percent increase in the past year.

Data collected by GovOS on behalf of the city found 234 total STRs operating within city limits, roughly 3 percent of the housing stock, defined as duplexes and single-family homes.

Airbnb is the most popular rental platform, making up 56 percent of the area’s listings with 18 percent on VRBO and 26 percent on both. The vast majority of the listings, 93 percent, are for entire homes versus only 7 percent for single rooms.

According to the data, the area’s average annual revenue grew 19 percent in the last year to $60,000.

The largest three STR managers in the area are Joyce-based Whiskey Creek Management with 23 units; Evolve Vacation Rental, headquartered in Denver with 21 units and Vacasa of Portland with 19 units.

Regulations over short-term rentals, or STRs, have become a controversial topic in the City of Port Angeles, with the City Council extending their regular meeting over two days to tackle the issue. On Wednesday, council members voted to limit the number of STRs in the city to 200, but that was after some members had initially supported a limit of 100 the day before.

The study was cited by Council member Lindsey Schromen-Wawrin during Tuesday’s debate over STR regulations.

“That should be alarm bells for us,” he said of Port Angeles’ ranking.

AirDNA takes regulation into account, and Port Angeles’ ranking includes a note that the city is looking at regulations that would cap the number of rentals in the city.

Supporters of STR have pointed to tax revenue generated by the rentals and their benefit to the local tourism economy while opponents have blamed the increase in short-term rentals in exacerbating the area’s lack of affordable housing.

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Reporter Peter Segall can be reached at peter.segall@peninsulanews.us.

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