Post Falls, Idaho

Post Falls, Idaho is located in Kootenai County, adjacent to the city of Coeur d'Alene and approximately 30 miles east of Spokane, Washington. The recent growth in the short-term rental market in Post Falls can be attributed to the city's appealing location, characterized by natural beauty and proximity to various outdoor recreational activities. Factors like affordability, accessibility, and a friendly small-town environment differentiate Post Falls from its neighboring urban centers.

As of October 2023, the average daily rate (ADR) for short-term rentals has reached $277.39, reflecting the increasing demand for vacation rentals in the area. The market has become increasingly saturated with options that range from charming cabin retreats to modern apartments, providing travelers with diverse accommodation choices.

Several key performance indicators (KPIs) can be identified to understand the short-term rental market in Post Falls, including:

• Average Daily Rate (ADR): Currently at $277.39, indicating a premium placed on rentals in this area due to demand.
• Occupancy Rate: While specific current occupancy rates are variable, average rates across similar markets in Idaho hover around 60% to 75%, influenced by seasonal trends.
• Revenue Per Available Room (RevPAR): Derived from the ADR multiplied by the occupancy rate, this figure serves as an industry benchmark for measuring how well rental properties are performing.
• Length of Stay (LOS): Most guests book rentals for weekends or week-long getaways, indicating a preference for short-term stays.
• Guest Demographics: Analyzing guest profiles reveals that both leisure and corporate travelers contribute significantly to the market's dynamics.

Monitoring these KPIs will provide prospective investors a clearer understanding of current performance levels and help in making informed decisions.

Over the past decade, the city of Post Falls has experienced notable growth, stemming from its expanding economic base and attractive location. Factors contributing to this growth include:

• Population increase: In 2010, Post Falls had a population of approximately 27,000 residents; by 2020, it rose to almost 37,000, a significant increase of 37%.
• Economic growth: The local economy has diversified, supporting various sectors including manufacturing, retail, healthcare, and tourism.
• Infrastructure Development: Enhancements in transportation and utility services have made Post Falls a more desirable location for both residents and visitors.

This sustained growth has bolstered confidence in the short-term rental market, as more visitors flock to the area for both vacation and business purposes.

Investing in short-term rentals in Post Falls presents an appealing opportunity for numerous reasons:

1. Affordability: Property prices in Post Falls remain significantly lower than in some neighboring cities, such as Coeur d'Alene and Spokane. This allows investors to acquire properties at lower acquisition costs.
2. Increasing Demand: The ongoing growth in tourism and the influx of residents migrating to the area for job opportunities underpin high demand for rental properties.
3. Potential for Appreciation: With increasing population and economic resilience, property values are likely to appreciate in the long term, providing investors with additional returns.

Given an ADR of $277.39 and an anticipated occupancy rate of 70%, gross revenues would amount to approximately $52,703 per unit annually. Deducting expenses—typically around 30% of gross income—would yield net income close to $36,892. This translates into a potential ROI of 8-10% based on initial investment and property value.

Post Falls experiences seasonal variations that directly impact short-term rental performances:

• High Season (Summer months): Peak tourism season in Post Falls aligns with good weather, outdoor activities, and events. July sees approximately 80% occupancy, heavily driven by family vacations, water activities, and local festivals.
• Shoulder Seasons (Spring and Fall): The occupancy rates dip slightly to around 65-70% as travelers take advantage of milder weather for activities like hiking, fishing, and exploring local attractions.
• Low Season (Winter months): Winter activities in nearby ski resorts draw visitors, but overall occupancy tends to dip below 60%, especially during the colder weeks of January and February.

Investors should anticipate these fluctuations and plan their strategies accordingly, focusing on marketing during off-peak seasons and appealing to specific guest demographics.

Across Post Falls, various property types are performing differently in the short-term rental market. Key insights include:

• Single-family homes tend to attract families and larger groups. The average occupancy for these properties can reach 75% in peak seasons.
• Condos and apartments cater to couples and smaller groups, often showing higher nightly rates but slightly lower occupancy rates compared to single-family homes.
• Unique stays such as cabins and lakeside retreats are also gaining popularity, allowing investors to leverage the area's natural scenery for a distinctive experience.

Overall, single-family homes and unique stays are particularly high in demand, often fetching higher ADRs due to their spaciousness and unique offerings.

Current trends indicate that guests increasingly seek certain amenities when choosing short-term rentals in Post Falls. Key preferences include:

1. Outdoor Spaces: Access to outdoor areas, such as patios, balconies, and gardens, is highly valued by families and groups.
2. Full Kitchens: Guests prefer rentals that boast fully equipped kitchens, enabling meal preparation and enhancing the value of longer stays.
3. Wi-Fi & Workstations: With increasing remote work trends, business travelers are looking for reliable internet connectivity and designated workspaces.
4. Pet-Friendly Options: Many travelers prefer accommodations that allow pets, further expanding their options when choosing a rental.

Understanding guest preferences can aid property owners in tailoring their offerings to enhance booking potential and guest satisfaction.

The short-term rental regulatory landscape in Post Falls is evolving. Potential investors should note:

• Licensing: Owners must obtain appropriate licenses from the city to operate short-term rentals legally. Information on requirements can be sourced from local government websites.
• Property Regulations: Certain regulations dictate safety standards, zoning restrictions, and minimum stay requirements, which investors need to adhere to.
• Impact of Neighboring Regulations: Post Falls sits near Coeur d'Alene, which has instituted stricter regulations on short-term rentals. Changes in neighboring municipalities can influence local policies, prompting Post Falls to adapt.

Investors should stay updated on local regulations to ensure compliance and avoid potential penalties.

Post Falls is characterized by various neighborhoods, each offering unique aspects for investors to consider:

• Downtown Post Falls: Close to amenities, parks, and restaurants, this area attracts younger travelers and business visitors. The average ADR is higher here due to its central location.
• North Post Falls: Known for its residential comforts, families often lean towards this area for longer stays. Community parks and good schools make it popular among families.
• Lake Coeur d'Alene Area: Offers proximity to water activities, attracting guests in the summer months. Seasonal rates are often elevated here, making it attractive for short-term rental investments.

Investors should conduct a thorough neighborhood analysis before purchasing, ensuring alignment between their property type and the ideal customer demographic.

The future direction of the short-term rental market in Post Falls is anticipated to lean positive, underpinned by:

• Continued Population Growth: As more people move to the region, demand for accommodation options is expected to rise.
• Investment in Infrastructure: Ongoing developments and enhancements in local infrastructure will provide better access and services for visitors, making the city more attractive for short-term stays.
• Diverse Guest Targets: post-COVID, the appeal of remote work has opened avenues for longer stays with increased spending on amenities.

With these factors in play, investors who strategically enter the market now may see fruitful long-term benefits.