New Buffalo, Michigan, is a popular summer vacation destination located right on the shores of Lake Michigan, just across the state border from Chicago. New Buffalo MI real estate agent Chad Gradowski points up the city’s charming downtown, wine trail, and proximity to casinos as tourist attractions. New Buffalo also presents an appealing opportunity for investors and entrepreneurs to profit from the strong tourism demand through Airbnb vacation rentals. Here are some reasons why you should consider investing in this prime location:
High tourism means built-in demand
New Buffalo, a popular summer travel destination less than two hours from Chicago, attracts a steady stream of leisure visitors due to its proximity to the city’s population. Smith Travel Research reports that New Buffalo experiences high hotel occupancy rates in July and August and hosts numerous annual festivals and events to attract tourists. This consistent visitor demand makes vacation rental income potential strong for Airbnb hosts.
Favorable Airbnb market conditions
A 2022 AirDNA market analysis shows optimistic indicators for Airbnb investing in New Buffalo. The annual Airbnb occupancy rate is over 40% compared to 60% for hotels and vacation rentals, which command an average daily rate of $277, on par with local hotels. Active Airbnb hosts can generate annual revenue of $22,000 for a one-bedroom property and $70,000 for a 5-bedroom beach-side property.
Limited supply equals high demand for rentals
Despite the significant tourism industry, New Buffalo still has a limited supply of short-term vacation rentals. AirDNA reports that the market currently has fewer active Airbnb units, less than half the number of hotel rooms in New Buffalo. This supply limitation leaves ample room for expansion. Investors who move quickly can capitalize on the open inventory to activate high-occupancy and high-revenue units.
Strategies for maximizing income potential
From utilizing dynamic pricing models to working with an Airbnb management company, investors have many options when starting. The rental potential can be enhanced by renovating older lake homes into luxurious retreats or focusing on large 7+ bedroom properties that can accommodate big groups. These are additional ways to elevate rental potential. Because tourism spans a good portion of the year, securing longer-term renters or a mix of seasonal and off-season bookings also helps ensure stable vacation rental income.
Homes for sale in New Buffalo: Time to invest in relaxation
New Buffalo offers a promising opportunity due to its strong regional tourism industry, underserved Airbnb market, and effective revenue-maximizing strategies. Businesses can profit from the increasing demand for relaxation while guests enjoy first-rate accommodations by investing in holiday rentals. It’s a win-win for both hosts and guests. The outlook for Airbnb’s income potential in New Buffalo is bright.
New Buffalo real estate
New Buffalo has seen steady growth in its real estate market over the past decade. Waterfront property is highly desirable and expensive in New Buffalo, with most lakefront homes selling for over $1 million. The downtown area also features several newer condominium and apartment developments catering to second-home buyers and vacationers. New Buffalo real estate is attracting interest due to its scenic area and vibrant small-town atmosphere despite recent price increases.