Let’s not get carried away by a property’s design or its proximity to major tourist areas because the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment, specifically when buying a property investment in Galveston.

This includes the best website recommendations for property investment, the prices and properties for sale in Galveston, along with each property type’s gross rental yield, cash-on-cash return, and annual revenue.

Pros of buying an Airbnb Property in Galveston

It’s a fact that Galveston is one of the most fascinating and exciting destinations in Texas, in fact, there’s no shortage of things to do around the city. It doesn’t matter if you want to walk through beautiful beaches or visit cultural attractions, Galveston will always have something to offer you. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Galveston:

1. Real estate market in Galveston: many housing options!

Galveston offers many different housing options, but that’s not everything, because the median property values are also quite affordable! Currently, the average price is $383K with a 1-year value change of 15.9%.

2. The tourist sector is steadily growing

Tourism plays an important role in Galveston’s economy as it brings a lot of tax revenue! Around 7M travelers visit this city annually to experience its great weather conditions and fun recreational activities. This surely will catch investors’ attention who want to cater to tourist accommodations.

3. Great location

Living or investing in Galveston means that you will be close to all types of amenities, but not only that because you will also also be close to major cities such as Houston, Corpus Christi and Austin. In addition to this, it’s just 40 minutes away by car from William P. Hobby Airport.

Cons of purchasing a property in Galveston

Now that we know the pros of investing in Galveston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High property tax

In Texas overall, homeowners face some of the highest property taxes in the US. Galveston’s average effective property tax rate of 1.92%, which is above the national average of 0.99%.

2. Is Galveston a safe city? 

The crime rate in Galveston is something that will highly concern you if you’re thinking of investing in this city. Should you look for a reliable home security system? The answer is yes because Galveston’s crime and property crime rates are 70% higher than the national average. In this city, there’s a 1 in 26 chance of becoming a victim of crime and this has increased by 7% year-over-year.

Best Neighborhoods for Airbnb in Galveston

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Galveston. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Pirates Beach

• Annual Revenue: $48,282
• Occupancy Rate: 70%
• Average Daily Rate: $211

2. Lasker Park

• Annual Revenue: $25,930
• Occupancy Rate: 63%
• Average Daily Rate: $131

3. East End Historic District

• Annual Revenue: $33,863
• Occupancy Rate: 67%
• Average Daily Rate: $135

Is Property Investment Profitable in Galveston, TX?

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in Galveston can generate an annual revenue of $53,057 with a steady occupancy rate of 50% and a nightly rate of $212.