As tourism in the Hudson Valley continues to grow, the popularity of short-term rental programs like Airbnb is beginning to have a positive impact on the real estate market.
“For the first few years, we felt that Airbnbs were working against us because people had the attitude of ‘Why should we buy when we can rent a home that suits our immediate needs?’” said Katherine Jennings, who manages Houlihan Lawrence’s Millbrook office in Dutchess County.
Yet it seems that being able to test the waters without commitment has helped these renters become better familiarized with the area’s communities, ultimately leading them to more comfortably consider a second-home purchase. And many buyers are in turn listing them, in part or whole, back on platforms like Airbnb.
“They have gotten tired of moving their skis and their children’s toys from house to house,” said Jennings, who oversees 35 agents who cover Dutchess, Columbia, Ulster and Greene counties in New York, and Litchfield County, Conn. “Plus, they know what kinds of properties will work on Airbnb.”
Listings with standalone guesthouses, as well as a main house for the owners, have become extremely popular.
The new tax code enacted by Congress late last year, which severely limits the amount of deductible state and local taxes, is also having an effect.
“Some of our buyers are telling us that their accountants are advising them that if they own a second home as an LLC, then they can write off some of the expenses of owning the house against the Airbnb income they get from it,” said Jennings.
In general, nightly rates for Hudson Valley Airbnbs range from $200 to $400 for a house, she said. Popular communities include Hudson, Rhinebeck, Amenia, Millbrook, Millerton, Chatham, Woodstock, Saugerties and New Paltz. “Essentially, it starts at Millbrook and goes north,” said Jennings.
In the Columbia County city of Hudson, nightly rates for in-town apartments range from $150 to $300, said Annabel Taylor, a Houlihan Lawrence agent based in Millbrook who owns two Airbnb rentals in Hudson with her husband, Zach Hill. “It’s been successful beyond our wildest dreams,” generating about $10,000 a month in the summer, she said.
“Almost all of my clients keep Airbnb in mind when purchasing property,” said Taylor. “It’s always a factor when figuring out their monthly carrying costs.” This is especially true for her Brooklyn clients looking to buy a second home in Hudson. “They can’t afford to buy in Brooklyn so essentially they are buying their second home first.”
Renters are predominantly from New York City, but owners can count on a steady stream of tourists from around the country and around the world, said Jennings. The prime season runs from Memorial Day through Columbus Day.
“I’ve been surprised at how busy I’ve been in the off-season,” said Jennings, who has an Airbnb on her horse farm in Ghent. “I would say I have it booked for half of the off-season weekends.”
Tourism has become big business in the Hudson Valley. More than 4.75 million people visit Dutchess County annually, and tourism spending in the county in 2016 increased 7.6 percent over 2015 to more than $568 million, according to Dutchess Tourism.
