But there’s an awful lot of variability in that figure. The top 5% of VRBO rentals in Avon in December of 2018 were pulling in $2,622 a night. On the other hand, the bottom 5% of VRBO rentals in Avon in May 2019 were only getting $121. Here’s how it breaks down.
Avon ADR by Month
Winters (December through March) are in the $600s, the rest of the year is the $300s…though April, August, and November are close to or higher than $400. That tracks with the tourist market, as Avon tends to have a very busy ski season and a quieter summer.
Perhaps surprisingly, the ADR for hotel rooms is generally higher than the ADR for Airbnb. In a study of seven markets, hotel rooms averaged $16 more per night. That relationship doesn’t always hold in ski areas like Avon, though. A 2017 article showed resort area Airbnb ADRs to be higher than hotels and occupancy to be lower. Recently, short term vacation rental occupancy rates were as low as 22% in October, though they rose to 65% in March. Monthly income tracks accordingly, from $1456 in October to $9,100 in March.
The supply picture is changing as well. In Q3 2016, there were only 534 active short term vacation rentals in Avon. By 2019 the number rose to 1946. The market continues to grow and mature. Research company Airdna, which we use to prepare investment reports for clients, calls Avon one of the best markets in the country for investment. It’s highly seasonal, but the ROI is high because house prices have not yet risen to match market demand for short term rentals.