We would like to share some strategic information with you about the growth of short-term rentals in the Louisville market. We are frequently asked where short term rental activity is growing and where to invest. The best way to answer that question is to look at trend data. Below is trend data from the last 12 months that covers 40202, 40203, 40204, and 40205. 40203 is the breakout star in most categories.
Metro Louisville Zip Code Map
Louisville Short Term Rental Annual Revenue Growth by Zip Code
For the calendar year 2019, the 40203 zip code is showing the highest YOY Revenue growth at 35%. For 1-2 bedroom growth, 40202 and 40203 are nearly tied at 26% and 28% respectively. In the 3-5 bedroom category 40202 and 40204 are tied at 23% Revenue growth while 40203 is not far behind at 18%.
Louisville Short Term Rental Average Daily Rate by Zip Code
Trends for growth in average daily rate (ADR) followed revenue growth by zip code with 40203 showing a 26% increase, primarily driven by the month of May. However, there is a noticeable decline in ADR for the months of May YOY, which indicates what we have been predicting – Derby rates will continue to lessen across the board as a growing number of seasonal & event listings join the crowd of year-round hosts. May 2018 showed and ADR of $514 while May 2019 showed a 21% decrease to $407 per night. For the other 22 months 40203 still showed an impressive $143 per night average, driven mostly by an increase in weekend high-season rates in 2019. Overall, 40202 is leading the 1-2 Bedroom market with he highest ADR and 40205 continues to lead the 3+ bedroom market with 18% growth, while 40202 leads the weakening trend in this space with -19% growth YOY.
Louisville Short Term Rental Occupancy Growth by Zip Code
40202 and 40203 lead occupancy growth at 22% and 18% respectively. The leading and most consistent occupancy zip code is 40204 with 24-month average occupancy of 59.28%. Overall growth in the 1-2 Bedroom sector is led by 40202 with 15% YOY occupancy growth and 24% growth by 40203 in the 3-6 Bedroom sector.
Click HERE to lear how to register your property as a short-term rental in Louisville
To see a current list of registered short-term rental properties in Louisville by zip code, click HERE