Newton, Kansas

Newton, Kansas, located in Harvey County, is a city with a population of approximately 19,000 residents. It serves as a middle-ground between Wichita and larger rural communities, providing an ideal base for travelers seeking a more homely and local experience. The short-term rental market in Newton has captured attention due to its affordability and proximity to key attractions such as the Stringtown Neighborhood Historic District and Sand Creek Trail. With the current Average Daily Rate (ADR) set at $106.86, Newton presents an accessible option for both visitors and investors looking to enter the rental market.

Short-term rental performance metrics offer essential insights into the health and vitality of the market. The key performance indicators (KPIs) for Newton's short-term rental market include:

• Average Daily Rate (ADR): $106.86
• Occupancy Rate: The latest estimates indicate occupancy rates hovering around 60-70% on average.
• Revenue Per Available Room (RevPAR): Taking the ADR and occupancy rate into account, the RevPAR stands at approximately $64.12.
• Length of Stay: The average length of stay is noted to be around 3-4 nights, indicating a preference for travelers seeking brief visits rather than extended stays.
• Number of Listings: Approximately 80-100 active short-term rental listings are available across platforms such as Airbnb and Vrbo.

Understanding these KPIs is crucial for investors as they set benchmarks against which to measure the performance of their properties.

Over the past decade, the short-term rental market in Newton has experienced gradual growth. While definitive statistics specific to short-term rentals are sparse, available data indicate a rising consumer preference for non-traditional accommodation options. This cultural shift has contributed to increased supply as more property owners consider monetizing their space through platforms traditionally focused on vacation rentals.

Over the last ten years, the growth trajectory is characterized by moderate growth rates of around 3-5% annually in rental prices and occupancy levels. Competitive pricing against traditional lodging establishments has made short-term rentals an appealing choice for travelers, bolstered by the economic recovery post-COVID-19, which saw a more robust return in travel demand.

Considering the current ADR of $106.86 and a conservative occupancy rate of 60-70%, the investment potential for short-term rentals in Newton can be promising. If an investor were to secure a property valued at $150,000 with a monthly operational cost of around $1,000 (including utilities, cleaning, and management), the revenue calculations could unfold as follows:

• Annual Revenue Estimation:
  [
  \text{Expected Occupancy (65%)} \times 365 \times \text{ADR} = 0.65 \times 365 \times 106.86 \approx $25,258
  ]

• Net Revenue:
  [
  \text{Annual Gross Revenue} – \text{Annual Operational Costs} = $25,258 – $12,000 = $13,258
  ]

• Return on Investment (ROI):
  [
  \frac{\text{Net Revenue}}{\text{Property Cost}} = \frac{$13,258}{$150,000} \approx 8.84%
  ]

This potential ROI of approximately 8.84% is competitive compared to many investment avenues, highlighting Newton as an attractive option for real estate investors willing to manage short-term rental properties.

Newton has a relatively stable short-term rental market with discernible seasonal fluctuations. Occupancy rates typically peak in the summer months due to an influx of visitors for local events, including the Kansas State Fair in Hutchinson, just a short drive away. Fall and spring also see higher occupancy due to mild weather, which appeals to visitors exploring local parks and historical sites.

Key considerations include:

• Spring and Summer: High tourism and family travel lead to significant increases in booking activity.
• Fall: Slight decrease in bookings can be expected, but it remains stable due to events and favorable weather.
• Winter: Generally marked by lower occupancy rates, favored by travelers who enjoy winter sports or local holiday events.

Understanding these seasonal dynamics is essential for strategic pricing and marketing efforts.

The types of properties performing best in Newton's short-term rental market include single-family homes, townhouses, and apartments. Each property type caters to different guest demographics and preferences:

• Single-Family Homes: Catering to families and groups traveling together, single-family homes offer additional space and amenities such as kitchens and yards, making them popular choices.
• Apartments: Typically favored by solo travelers or couples looking for more budget-friendly options, apartments often promote a more central location.
• Unique Stays: Properties with distinctive characteristics, such as cabins or heritage homes, also draw guests seeking a unique experience, particularly during the summer months.

Traditional appeal maintains its relevance, especially among families and larger groups opting for accommodations that offer amenities not found in hotels.

Understanding guest preferences is critical for short-term rental success. In Newton, guests often prioritize:

• Value for Money: Competitive pricing is a key driver, particularly among budget-conscious travelers.
• Home-like Amenities: Features such as fully equipped kitchens, backyard access, and laundry facilities are often sought after, enhancing the convenience for guests traveling with family.
• Proximity to Attractions: Locations within walking distance of parks, museums, and local eateries often receive higher ratings and repeat bookings.
• Cleanliness and Safety: Post-pandemic, guests have become increasingly aware of cleanliness standards, with high expectations for hygiene and safety protocols.

Listings that effectively market these amenities often outperform others with fewer features.

The regulatory environment in Newton has relatively lenient short-term rental policies. However, property owners are encouraged to familiarize themselves with local regulations regarding zoning and licensing. Currently, property owners must:

• Register with the city of Newton to operate as a short-term rental, ensuring compliance with local zoning laws.
• Adhere to state health and safety codes, which include safety inspections and maintaining appropriate insurance coverage.
• Respect occupancy limits which may vary by location within the city.

Investors should stay informed about potential changes in local regulations, which could impact operational viability and profit margins.

Neighborhood dynamics play a crucial role in influencing short-term rental success. In Newton, the following neighborhoods show promising potential:

• Downtown Newton: Close to amenities and historical landmarks, this area appeals to tourists requiring easy access to shops and restaurants.
• Stringtown Neighborhood Historic District: Known for its charming older homes, this area frequently attracts guests interested in local history and cultural experiences.
• Near Parks and Recreational Areas: Proximity to parks like Sand Creek Trail enhances relaxation and outdoor experiences, appealing to nature enthusiasts.

Investors should consider neighborhood desirability and demographics when selecting investment properties.

As of 2023, the market outlook for short-term rentals in Newton appears optimistic. Current trends may include:

• Increased Demand for Unique Accommodations: As more travelers seek personalized experiences, unique rentals could be in higher demand.
• Technological Integration: The use of smart technology and enhanced marketing strategies can attract more guests, with guests increasingly favoring listings with modern amenities.
• Sustainability Focus: Eco-friendly and sustainable lodging options are growing in popularity as environmentally conscious travelers prioritize such accommodations.

Investors who remain attuned to such trends will be better positioned to adapt and succeed within this dynamic market.