Quincy, Massachusetts

Quincy, Massachusetts, located just south of Boston, offers a unique mix of historical charm and suburban convenience that appeals to both tourists and business travelers. Known for its waterfront views and diverse neighborhoods, the city has seen incremental growth in the short-term rental (STR) market in recent years. As of October 2023, Quincy has positioned itself as an attractive locale for short-term rentals due to its proximity to Boston and its own distinct attractions like the Adams National Historical Park.

The primary indicators for evaluating Quincy’s short-term rental performance include:

• Average Daily Rate (ADR): Currently set at $279.55.
• Occupancy Rate: Typically fluctuates between 60% to 75%, depending on the season and events in the Boston area.
• Revenue Per Available Room (RevPAR): Calculated by multiplying the occupancy rate by the ADR; thus, RevPAR ranges from $167.73 to $209.66, indicating sound profitability for STR owners.
• Length of Stay: Average stays often range from 2 to 5 nights, driven by leisure visitors and business travelers.

These KPIs reveal that the Quincy STR market is performing relatively well, especially considering its competitive position against neighboring cities.

Analyzing the growth of short-term rentals in Quincy over the past decade reveals significant evolution in both supply and demand. The number of licensed short-term rentals has risen, with estimates showing approximately a 30% increase in listings since 2018. Of note:

• 2013-2017: Limited growth with sporadic listings. The public awareness and acceptance of STRs were still forming.
• 2018-2020: Sharper growth as tourism surged, coinciding with heightened interest in urban-suburban travel, affecting Quincy positively.
• 2021-Present: A major resurgence post-COVID-19 led to a new spike in occupancy and ADR levels as travel returned.

Overall, Quincy shows steady potential with a compounded annual growth rate (CAGR) within the STR sector pushing upwards of 5% during parts of this decade.

Investors in STR properties in Quincy can expect relatively favorable returns on investment when compared to other Massachusetts towns. The cost of investment—primarily influenced by property type and neighborhood—can range significantly.

• Initial Investment: The average cost of a suitable property (for STR) can vary from $500,000 to $900,000 for a single-family or multifamily dwelling.
• Projected ROI: Given the ADR of $279.55 and average occupancy rates of 70%, a property could generate gross monthly revenues of approximately $5,400 to $7,900, translating to an annual gross revenue ranging from $64,800 to $94,800.

This scenario positions investors for an ROI range generally between 6% to 8% annually, making Quincy an appealing option for a stable and potentially profitable STR portfolio.

Quincy experiences substantial seasonal fluctuations in the STR market, corresponding closely with the broader travel trends seen in New England:

• Spring (March-May): Demand begins to rise with travel associated with spring breaks and outdoor activities, particularly around the waterfront.
• Summer (June-August): Peak season, seeing occupancy rates potentially exceeding 80%. Events, beach activities, and Boston's nearby attractions drive significant demand.
• Fall (September-November): Visitors settle around the autumn foliage and cultural events, leading to a gradual taper in occupancy rates.
• Winter (December-February): Slowest season, with occupancy rates dropping below 60%, primarily due to colder weather and decreased travel. However, lucky listings that coincide with holiday attractions cautiously see stable occupancy.

Understanding these patterns is crucial for pricing strategies and operational planning for potential investors.

In Quincy, varying property types yield distinct performance metrics. Here are some key takeaways:

• Single-Family Homes: Generally attract families and groups looking for spacious accommodations. They often perform better during summer and holiday seasons.
• Condos and Townhouses: Popular among both business travelers and couples, these tend to have slightly higher occupancy in fall and spring.
• Multi-Family Units: Increasingly popular due to their ability to host larger groups. These properties maximize occupancy and are favored for special events, earning higher ADR.

Investors should align property type selection with intended target markets to optimize rental performance.

Understanding guest preferences is essential for property owners in Quincy. Some notable insights include:

• Family-Friendly Amenities: Full kitchens, outdoor spaces, high-capacity sleeping arrangements, and proximity to family-oriented attractions (like beaches and parks).
• Business Amenities: Properties equipped with high-speed internet, dedicated workspaces, and flexible check-in/check-out services attract business travelers looking for home-like comforts.
• Unique Experiences: Guests increasingly seek distinctive and local experiences. Properties that highlight local history, art, or offer guided tours or authentic Quincy experiences also see higher engagement.

Adapting to these preferences can significantly enhance a property’s appeal and rental rates.

Quincy has adopted regulations to oversee the booming STR market, emphasizing the importance of compliance:

• Registration Requirements: Property owners must register with the city and comply with state regulations to operate legally.
• Insurance Policies: STR owners are mandated to maintain liability insurance, ensuring protection for both guests and owners.
• Limitations: Restrictions may exist, including limits on rental durations and the number of rentals a property can offer simultaneously.

Investors should remain informed about local regulations, as non-compliance can lead to costly fines and the inability to operate STRs.

Quincy's neighborhoods each present unique characteristics appealing to various demographics:

• North Quincy: Better suited for younger professionals and families, offering good access to the train and local amenities.
• Quincy Center: The most popular area for STRs, providing vibrant local dining options and proximity to Boston.
• Wollaston: An upscale neighborhood known for its beaches, attracting both leisure visitors and families, with a quieter atmosphere.

Consideration of neighborhood dynamics is vital when selecting a property to maximize rental potential.

Looking ahead, the STR market in Quincy appears positive, with trends indicating continued growth:

• Sustained Interest in Local Travel: Post-pandemic shifts in travel behavior favor local and semi-local destinations like Quincy.
• Improvements in Infrastructure: Enhancements to local transport and amenities increase accessibility, making Quincy more desirable.
• Technological Adoption: STR owners are increasingly incorporating technology (virtual tours, efficient booking systems), improving guest experiences and operational efficiency.

As such, Quincy stands to benefit from investments in STR properties as the market continues to evolve.