Before COVID-19 hit, the Joshua Tree real estate market was known as a top Airbnb market. Owning an Airbnb or a short term rental property in the area was a coveted real estate investment strategy. In fact, Peter Spur, a Joshua Tree realtor, told LA Times in early 2020 that around 80% of his business came from the “buying and selling of short term rentals.” And year after year, Mashvisor’s annual Joshua Tree real estate market analysis has proven that local Airbnb rental properties earn a high return on investment for their investors. In December 2019, before the height of COVID, Mashvisor reported that Airbnb Joshua Tree real estate investors were earning a return on investment of 7.43% on average. The Airbnb data from the time also shows that hosts enjoyed a high occupancy rate of about 60%.
But is Joshua Tree real estate still a viable option for Airbnb investors and hosts in 2021? Or has the Coronavirus caused a major shift in Airbnb Joshua Tree real estate trends? Should you consider buying an Airbnb in Joshua Tree right now? Is this strategy still profitable in 2021?
Owning an Airbnb Joshua Tree Rental Property in 2021: Worth It?
We won’t keep you wondering:
Joshua Tree homes for sale are a great option for any real estate investor looking to break into the Airbnb market in 2021. Let’s explore a few reasons why.
Airbnb Investment Properties Are Legal
Before anything else, a real estate investor should ask if he/she will face any Airbnb legal issues in the Joshua Tree housing market in 2021. As you probably know, the California real estate market is no stranger to strict Airbnb regulations. Many major cities and popular tourist destinations outright ban Airbnb investment properties.
So, is Airbnb legal in Joshua Tree? According to our Airbnb market research, yes. It is legal for real estate investors to rent out non-owner-occupied investment properties on Airbnb in the Joshua Tree housing market.
At the same time, there are a few Airbnb laws and regulations that you will have to abide by, including:
- You will need to apply for a Transient Occupancy Tax Certificate.
- You will need to apply for a permit which will cost $667 and renew it every other year, which will cost $401.
- The Airbnb rental property will be subject to an inspection.
- There is a 7% tax on short term rental properties in San Bernardino County.
Keep in mind, this is not an extensive list of the local laws. It’s best that real estate investors do their own research and consult local authorities or an attorney before buying an investment property to rent out on Airbnb.
It’s also important to note that you will be heavily fined if you violate any Airbnb laws in the Joshua Tree real estate market. This past June, San Bernardino County’s Board of Supervisors raised the fines for violations. Rather than paying $100 for the first violation, $200 for the second, and $500 for the third in the span of 1 year, offenders would have to pay $1,000, $2,000, and $5,000.
Related: 20 Cities With No Airbnb Legal Issues in 2020
People Are Visiting Joshua Tree, Despite COVID-19
Tourism has a huge impact on the California housing market and the Joshua Tree real estate market is no exception. So when travel came to a halt at the beginning of 2020 due to the Coronavirus, the popular tourist destination found itself without its annual visitors. Short term rental properties in San Bernardino County were prohibited from operating and anyone who owned Airbnb real estate in Joshua Tree was forced to shut down.
Looking at the tourist statistics for the Joshua Tree National Park specifically, there were 2.4 million visitors in 2020. Compared to the nearly 3 million visitors of 2019, it’s clear that COVID caused a drop in tourism. However, upon closer look, it turns out that these drops were during the months of March, April, and May when a lockdown was in effect. In fact, during the rest of 2020, the park saw more visitors almost every month compared to 2019.
The takeaway? Unless people were prohibited from visiting Joshua Tree National Park, nothing could really keep them away. National parks were generally seen as a safe getaway for people during the pandemic where they could enjoy nature and get out of their homes. In fact, Airbnb released its Report on Travel and Living and noted that:
A greater share of Airbnb guests are staying within 30 miles of national parks, summer 2019 vs. summer 2021.
And with the park being the major attraction drawing people to surrounding Airbnb Joshua Tree rentals, this means a real estate investor is likely to enjoy a high Airbnb occupancy rate in 2021 and beyond.
Related: How a COVID-19 Vaccine Could Impact the Us Housing Market 2021
The Airbnb Data Proves That Joshua Tree Real Estate Is Profitable
If you’re still unsure about what to expect if you buy an Airbnb Joshua Tree real estate property in 2021, then let Mashvisor’s numbers tell you. Our Airbnb data is collected from the home-sharing website and the calculations are verified by real hosts in the market.
This is how Airbnb investment properties were performing on average in July 2021:
- Median Property Price: $549,788
- Joshua Tree Listings on Airbnb: 343
- Average Airbnb Daily Rate: $223
- Monthly Airbnb Rental Income: $4,420
- Airbnb Cash on Cash Return: 5.5%
- Airbnb Occupancy Rate: 70%
Essentially, the data shows that Joshua Tree houses for rent on Airbnb were earning their hosts a good return on investment thanks to high occupancy rates. Owning an Airbnb in the Joshua Tree real estate market is definitely profitable in 2021.
Besides the Airbnb return on investment, it’s also key to note the kind of appreciation you can expect from a Joshua Tree real estate property. Currently, the local housing market is hot and properties are being bought up by Airbnb investors as well as high-end buyers. As such, Joshua Tree real estate prices are soaring and value is climbing. NeighborhoodScout reports that the properties in the market have seen a whopping 267% increase in value from Q1 2000 to Q1 2021. Zillow reports that Joshua Tree home values have gone up 37% over the last year alone. So not only will you be able to make money in the short-term from your Airbnb rental property but you will reap the benefits of real estate appreciation in this market as well.
Related: 4 Key Airbnb Investment Metrics You Should Know
But How Can You Be Sure You’ll Make Money with Your Airbnb Here?
That’s easy – visit Mashvisor today to find a top-performing Airbnb rental property in the Joshua Tree housing market. All you have to do is sign up and search for Joshua Tree CA real estate using Mashvisor’s Property Finder Tool. Here, you’ll immediately see all of the most profitable Joshua Tree real estate for sale, according to key investment metrics like cash on cash return. Be sure to set the Airbnb Rental Strategy filter. That way this investment property tool will only display the best Airbnb properties in the Joshua Tree real estate market.
You can also set other filters that will narrow down your search even further. For example, if you’re interested in a Joshua Tree house, set the single family residential filter. If you wish to rent out a Joshua Tree apartment, select the multifamily option. Looking for a modern home for sale? Be sure to click on the property cards and visit the analysis page for any investment property for sale. There, you’ll find pictures and all the details you need to find the perfect property for your Airbnb business.
Not sure if you should invest in houses for sale in Joshua Tree CA or Joshua Tree land for sale? Check out this guide: Investing in Property or Investing in Land: Which Is Better?
Of course, our analysis page offers a lot more than pictures! You’ll get all the real estate investment metrics you need from our Airbnb Profit Calculator including:
- Comparable Monthly Airbnb Rental Income
- Monthly Expenses
- Cash Flow
- Cash on Cash Return
- Cap Rate
- Airbnb Occupancy Rate
- Airbnb Comps
Start Your Airbnb Investing Journey Today
Running an Airbnb is not easy work but you can make things easier on yourself by investing in a top market like the Joshua Tree California real estate market. And to make sure you get off on the right foot and quickly beat out the competition, start your Airbnb investing journey with Mashvisor. Start out your 7-day free trial with Mashvisor now.