STR Growth Rates

See Venice, CA

Tourism spending surges in Monterey County in 2017

 

For example, according to an article in Monterey County NOW, March 13, 2014 Land Lords; “Blake and Erika Matheson started doing short-term rentals in Pacific Grove in August of 2010, just months after the city passed the ordinance. They decided to fix up an in-law unit on their property. These days, it’s nearly always booked. “What started off being a few weekends became what it is today, where we have about three days off per month,” Erika says. They are not struggling to pay their mortgage, he says, it just seemed like a good idea, and it’s now something they enjoy doing. “It has significantly changed our cashflow, and our lives,” he says. “It’s appreciable.”  This is a 90% occupancy factor and above the 71% for the licensed hotel industry.

There are 143,000 homes in Monterey County.  At least 1,000 are already doing some form of STR or Home Stay.  The average number of people in a home is 2.5 to 3.  With tourists that number per home goes up.  Host Compliance has documented additional guests between 3 and 6 per home.  In Carmel Highlands 22 people stayed in a 6 room house.  Another large home offered accommodations for 40 people.  And with no barriers to entry, weak or nonexistent enforcement, and free advertising, the number of homes that might be involved goes way up.

 

In the Draft Ordinance ithe PC does not mention enforcement against cheating by Home Stay owners who get as ministerial permit.

 

What will the growth in the cheating part of the equation be?

 

Potential number of Home Stay locations = 143,000.  If they follow the rules, there is an average of one bedroom per home that could be potentially rented.  mIf they don’t, can be much more.  How is this detect4ed or enforced?  Who do the neighbors complain to?

 

AirDNA data from July 27, 2018.
Big Sur;              70% Occupancy rate; 26% annual growth; 6.0 guests average
Carmel Valley:  73% Occupancy rate; 36% annual growth; 4.3 guests average
Carmel:              73% Occupancy rate; 44% annual growth; 4.9 guests average
Monterey:          71% Occupancy rate; 32% annual growth; 4.5 guests average
Pacific Grove:    66% Occupancy rate; 52% annual growth; 5.2 guests average
Pebble Beach:    64% Occupancy rate; 57% annual growth; 6.5 guests average