Airbnb Market Analytics, Statistics and Data in Palmerston North, Manawatū-Whanganui, New Zealand
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Palmerston North? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Palmerston North:
How much do Airbnb hosts make on average per month in Palmerston North?
The short-term rental market in Palmerston North shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $1,268 per month
- Strong performing properties (top 25%) make $2,440 or more
- Best-in-class properties (top 10%) achieve $3,738+ monthly
- Entry-level properties (bottom 25%) typically earn around $660
Revenue Variations by Month
Occupancy Rates Throughout the Year in Palmerston North
The market in Palmerston North shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 50% occupancy rates
- Strong performing properties (top 25%) achieve 72% or higher
- Best-in-class properties (top 10%) reach 86%+occupancy
- Entry-level properties (bottom 25%) average around 26%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Palmerston North
Daily rates in Palmerston North vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $73 per night
- Strong performing properties (top 25%) secure $125 or more
- Best-in-class properties (top 10%) pull in $171+ per night
- Entry-level properties (bottom 25%) earn around $47
Daily Rate Variations by Month
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Seasonality patterns in Palmerston North
Peak Season (March, June, April)
- Revenue peaks at $2089.86 per month
- Occupancy rates reach 58.55%
- Daily rates average $99.34
Shoulder Season
- Revenue averages $1692.60 per month
- Occupancy maintains 49.80%
- Daily rates hold at $96.86
Low Season (December, August, January)
- Revenue drops to $1439.47 per month
- Occupancy decreases to 40.16%
- Daily rates adjust to $94.19
Is it still profitable to do Airbnb in Palmerston North in 2025?
Yes! Palmerston North demonstrates moderate seasonality with good off-peak opportunities, featuring a healthy occupancy rate of 50% and solid monthly revenue averaging $1693 and The market's 174 active listings indicate growing demand with plenty of opportunity for new properties. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Palmerston North
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| The Square | The heart of Palmerston North, offering a blend of shops, restaurants, and cultural attractions. It's ideal for guests looking to enjoy the urban experience and participate in local events. | Palmerston North City Library, Te Manawa Museum, Restaurants and cafes, Central Energy Trust Arena, Civic Square |
| Victoria Esplanade | A picturesque public park along the Manawatū River, perfect for outdoor activities. It's a popular area for families and tourists looking for nature and recreational options. | Victoria Esplanade Gardens, Palmerston North Botanic Gardens, Governers Green, Walking and cycling tracks, Playgrounds |
| Milson | A suburban area close to the airport, suitable for travelers looking for convenience. Milson has family-friendly amenities and is great for longer stays. | Milson Flight Park, Nearby parks and walking tracks, Local shops and services, Proximity to Palmerston North Airport, Milson School |
| Summerhill | A growing residential suburb with access to shopping centers and parks. Ideal for families and those looking for a quieter stay while still being close to the city. | Summerhill Shopping Centre, Local parks, Community center, Recreational facilities, Proximity to schools |
| Roslyn | A charming suburb situated on a hill, offering scenic views of the city. It's popular among visitors looking for a more residential and peaceful experience. | Roslyn Park, Local cafes, Scenic lookout, Easy access to city, Historic architecture |
| Awapuni | Known for its proximity to the racecourse and fairgrounds, Awapuni attracts visitors during events and is great for families. | Awapuni Racecourse, Hokowhitu Lagoon, Nearby parks, Rugby and sports facilities, Local shops |
| Ashhurst | A picturesque village on the outskirts of Palmerston North, ideal for guests looking for a rural escape while being close to the city. | Ashhurst Village, Dawson Falls, Walking tracks, Local artisan shops, Cafes |
| Hokowhitu | A vibrant suburb along the Manawatū River, popular with students and families, offering a mix of urban living and nature. | Hokowhitu Lagoon, River walkways, Local eateries, Proximity to Massey University, Community events |
Do you need a license for Airbnb in Palmerston North?
We recommend checking directly with Palmerston North's local government regarding short-term rental licensing requirements. Current market data shows limited licensing information (0% of listings), making it essential to verify current regulations before starting your Airbnb business.
Top Performing Airbnb Properties in Palmerston North
Riverdale Retreat - Spa pool & bath, & near shops
Entire Place • 5 bedrooms
Cozy Home Near City Centre
Entire Place • 4 bedrooms
Wow! Large home, 3 beds/3 baths, families/groups
Entire Place • 3 bedrooms
3 Bedroom home away from home in Palmerston North
Entire Place • 3 bedrooms
Charming Character Home
Entire Place • 2 bedrooms
Modern & Spacious Home!
Entire Place • 4 bedrooms
Top Performing Professional Hosts in Palmerston North
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Wei | 5 | $126,189 | 146 | 4.82/5.0 |
| Lydia | 4 | $116,016 | 1157 | 4.78/5.0 |
| Sarah | 2 | $106,326 | 284 | 4.91/5.0 |
| Kathy | 4 | $100,350 | 234 | 4.98/5.0 |
| Dwayne | 3 | $90,669 | 47 | 4.97/5.0 |
| Rosette | 2 | $80,639 | 38 | 4.77/5.0 |
| Amanda | 3 | $76,582 | 189 | 4.94/5.0 |
| 271228684 | 4 | $62,784 | 0 | 0.00/5.0 |
| Tom | 2 | $61,470 | 278 | 4.67/5.0 |
| Drovers | 3 | $60,953 | 56 | 4.80/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Palmerston North
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (61.5%), with house and boutique & hotels properties comprising 70.7% of inventory
- Strong specialty sector (27.6%) combining boutique hotels, unique stays, and outdoor accommodations indicates market maturity and premium opportunities
Room Capacity Distribution
Analysis of 174 properties in Palmerston North shows that 1 bedroom properties are most prevalent, making up 33.3% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 50.6% of all listings.
Key Insights
- Most common: 1 bedroom (33.3%)
- Least common: 5+ bedrooms (2.9%)
- Market concentration: 50.6% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 174 properties in Palmerston North reveals that 2 guests properties dominate the market, representing 24.1% of all listings. The average property accommodates 2.9 guests, with a clear trend towards larger guest capacities. Properties accommodating 2 guests and 4 guests make up 36.8% of the market.
Key Insights
- Most common capacity: 2 guests (24.1% of market)
- Least common capacity: 1 guest (1.7% of market)
- Average guest capacity: 2.9 guests per property
- Market concentration: 36.8% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 174 properties in Palmerston North, the most common availability pattern is 181-270 days (28.7% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (27% of properties).
Key Insights
- Most common availability window: 181-270 days (28.7%)
- Most common booking duration: 91-180 days (27%)
- Properties with high availability (180+ days): 57.5%
- Properties with long-term bookings (180+ days): 44.8%
Minimum Stay Distributions
1 Night
112 listings
69.6% of total
2 Nights
37 listings
23% of total
3 Nights
1 listings
0.6% of total
4-6 Nights
3 listings
1.9% of total
7-29 Nights
4 listings
2.5% of total
30+ Nights
4 listings
2.5% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 92.6%
- Mid-length stays (4-6 nights) represent 1.9% of listings
- Monthly+ stays (2.5%) suggest a stable extended-stay market
- High market flexibility with 93.2% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Flexible
74 listings
46% of total
Moderate
55 listings
34.2% of total
Firm
21 listings
13% of total
Strict
11 listings
6.8% of total
Key Insights
- Flexible is the preferred policy at 46.0% of listings
- Guest-friendly policies (Flexible & Moderate) dominate at 80.2% of the market
- Strong market consensus around Flexible policies
- Strict policies are least common at 6.8% of listings
Recommendations
- Consider starting with a Flexible policy to align with market preferences
- Strong market preference for Flexible policies suggests this should be your baseline
- Consider generous cancellation terms as a competitive advantage
- Strict policies are rare - carefully consider the impact on bookings before implementing
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Oct, Jul, Dec, averaging 61 days
- Shortest booking windows are in May, Sep, Aug, averaging 41 days
- Winter shows the longest average booking window at 57 days, while Spring has the shortest at 48 days
Recommendations
- Implement dynamic pricing strategies for Winter bookings at least 57 days in advance
- Consider early bird discounts during Spring to encourage longer lead times
- Focus on last-minute booking promotions during May-Aug when lead times are shortest
Popular Airbnb Amenities in Palmerston North
Below is the distribution of amenities across listings in Palmerston North:
Traveler Demographics
Key Insights
- Domestic travelers make up 81.5% of total guests, indicating a dominant local market share.
- Primary international markets: Australia (6.9%) and United States (3.1%)
- English is the top language at 82.5%, followed by Chinese (5.6%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 6.8%
Recommendations
- Target marketing campaigns for Auckland and Wellington markets
- Develop localized content for Australia and United States
- Prioritize English and Chinese language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Palmerston North. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Waimārama | 46 | $2,149 | $355.11 | 26% |
| Havelock North | 218 | $2,141 | $223.69 | 43% |
| Martinborough Community | 236 | $2,077 | $190.98 | 38% |
| Picton | 104 | $1,913 | $166.29 | 47% |
| Clive | 26 | $1,872 | $172.65 | 38% |
| Te Awanga | 38 | $1,831 | $226.76 | 37% |
| Greytown Community | 114 | $1,686 | $147.60 | 38% |
| Hastings | 180 | $1,681 | $170.89 | 45% |
| Paekākāriki | 16 | $1,577 | $120.60 | 45% |
| Napier | 502 | $1,574 | $160.01 | 44% |
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