According to AirDNA, a company that provides data and analytics for the short-term rental industry, the Kenai Peninsula is one of the best places in the United States to invest in vacation rentals in 2022. It ranked number 2 on their list, which comes as no surprise to those of us who have lived in or have visited this special part of Alaska.
The Kenai Peninsula has a typical home value of $237,000, an occupancy rate of 67%, an average daily rate of $262, and average yearly revenue of $44,000. Even though there was a calculated average occupancy of 67% overall, in peak season 2021 occupancy reached over 80%.
As our local Alaskans know, the tourism industry is huge, especially during the peak summer months. We also know that the pandemic has encouraged our locals to explore their own state, which was exhibited mid-pandemic 2020 when our locals stepped up to support local businesses that rely on tourism revenue. The pandemic also created a higher demand for outdoor activities, which Alaska has no shortage of.
Homer, Alaska (AKA the Halibut Fishing Capital of the World) draws in thousands of people each summer. Homer has plenty of small businesses that rely primarily on their revenue generated during the summer season.
Homer-specific statistics for short-term rentals are similar to that of the overall Kenai Peninsula. However, one significant difference is the occupancy rate. The overall average throughout the year is 82%, while July has an occupancy rate of 97%. Homer also has an average daily short-term rental rate of $215, and average monthly revenue of $3,230. According to Alaska MLS, the average property sales price in Homer for 2021 was $358,865.
This suggests that Homer has a higher demand for short-term rentals. Ensuring an adequate amount of short-term rentals is essential to supporting the tourism industry (and therefore the overall economy) in Alaska and supporting the local businesses.
Homer Real Estate 