Here is a graphic to show what real estate has done on Hilton Head Island this past year. I have included most of the areas where short term rentals happen. This trend seems to be continuing into 2021. One interesting thing that seems to be happening is there are more purchases being made by owners who are pulling their units out of the short term rental market. The effect this is going to have on visitors coming to Hilton Head is something I will be watching. Currently STR's are seeing a 10-15% increase in rental rates for the summer of 2021.
The long term rental market is seeing similar results only I would say the increase in rental amounts is even higher in some areas than 15%.
Hilton Head was also a top 10 market in the United States for flips in 2020.
This market is still a great area to invest. The entry point is higher than it has been in the past 10 years, but there is still some solid upside and the investment numbers do work. If you are looking to own a property here in the Low Country, now is the time to get in.
What does your research show based on larger properties(4-5 beds) as compared to smaller properties? Is the demand increasing for larger STVR compared to smaller ones?
The larger STR is seeing even better results. The key is a private pool is needed. Larger STR's with private pools are not only seeing the highest sale price increase, but they are also seeing larger rental increase. They are getting more rent for longer periods of time. 4-5 bed single family homes should generate rental income close to 40 weeks a year now. By the way I'm from Janesville, WI. Nice to see another Wisconsinite following the HHI market.
Fortuitous that I should run into this! I'm actually more focused on Tybee Island (my family is all in GA) or Daufuskie but could look at HHI. I think what you are seeing makes total sense when considering covid. Ppl pull their STRs bc they are afraid or don't want the hassle. Yet ppl are desperate to vacay, but not necessarily at a hotel so they splurge at a nicer place, invite more family and stay longer.
Terri I think Daufuskie is a great value. You can get a lot of home very close to the water there at a great price.
Many families are traveling together and spending more to stay in their “Bubble”. I think this may become more of the norm going forward.
@Ron Williams ,what makes Hilton Head a 40 out of 52 week destination for those desiring a bigger,4-5 bed, home?
For what months is Hilton Head a golf destination?
Looking for locations outside of WI for STVRs. I know lots of golfers like both Myrtle Beach and Hilton Head.
You have 2 different users for the extra weeks. There are families and extended families willing to spend a week here in September, October, March, April, and May. May-September will always fill.
Golfers come October, the first half of November, most of Feb, March, and April.
The other factor is larger short term rentals are becoming tougher to find. More people are staying here as opposed to renting their units.
Hi Ron, this is one I purchased exactly one year ago in North Myrtle Beach. It was my first STR after decades of LTR.
I never realized the first year success like this. Covid had no effect whatsoever as people stayed out of the major hotels and shared elevators and Sought safety in solitude. You’re 100% correct about private pools.
Hi Ron, I just purchased a small STR in Hilton Head and I'm looking for a general contractor to do some renovation. Any suggestions would be greatly appreciated. Also, wondering how necessary it will be for me to be local during renovations or if I can do this remotely?
@Penny Pells find an owner’s remodeling rep to help you get estimates and oversee remodeling so you get a fair rice and good workmanship.