Cape May Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in New Jersey, United States
Is Airbnb profitable in Cape May in 2025? Explore comprehensive Airbnb analytics for Cape May, New Jersey, United States to uncover income potential. This 2025 STR market report for Cape May, based on AirROI data from April 2024 to March 2025, reveals key trends in the market of 289 active listings.
Whether you're considering an Airbnb investment in Cape May, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Cape May Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Cape May Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Cape May (2025)
Understanding the monthly revenue variations for Airbnb listings in Cape May is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Cape May is typically August, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Cape May across different performance tiers:
- Best-in-class properties (Top 10%) achieve $13,807+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $7,952 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $4,839 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $2,908, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Cape May
Cape May Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Cape May STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees the highest demand (peak season occupancy), while February experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Cape May:
- Best-in-class properties (Top 10%) achieve 71%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 55% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 38%.
- Entry-level properties (Bottom 25%) average 22% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Cape May
Average Daily Rate (ADR) Airbnb Trends in Cape May (2025)
Effective short term rental pricing strategy in Cape May involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Cape May typically peaks in August and dips lowest during January. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $1,047+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $616 or more.
- Typical properties (Median) charge around $377 per night.
- Entry-level properties (Bottom 25%) earn around $279 per night.
Average Daily Rate (ADR) Trend by Month in Cape May
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Airbnb Seasonality Analysis & Trends in Cape May (2025)
Peak Season (August, July, June)
- Revenue averages $12,115 per month
- Occupancy rates average 63.8%
- Daily rates average $580
Shoulder Season
- Revenue averages $5,881 per month
- Occupancy maintains around 36.4%
- Daily rates hold near $518
Low Season (January, February, March)
- Revenue drops to average $2,754 per month
- Occupancy decreases to average 21.3%
- Daily rates adjust to average $491
Seasonality Insights for Cape May
- The Airbnb seasonality in Cape May shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Cape May's highest earning potential, with monthly revenues capable of climbing to $13,390, occupancy reaching a high of 70.4%, and ADRs peaking at $586.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $2,352, occupancy could drop to 19.9%, and ADRs may adjust down to $488.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Cape May.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Cape May seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Cape May (2025)
Exploring the top neighborhoods for short-term rentals in Cape May? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Beach Avenue | This prime location offers direct access to Cape May's beautiful beaches and is in close proximity to restaurants and shopping. It's a favorite among visitors looking for a classic beach town experience. | Cape May Beach, Washington Street Mall, Cape May Lighthouse, Emlen Physick Estate, The Nature Center of Cape May |
| Congress Hall | Historic hotel and area that attracts tourists for its charm and Victorian architecture. Ideal for those wanting to experience Cape May's rich history and culture. | Congress Hall, Beach Theatre, Cape May Historic District, Cape May Stage, Cape May Wine School |
| Victorian District | Known for its well-preserved Victorian buildings, this district offers a unique experience steeped in history and beauty, making it a great spot for Airbnb hosting. | The Emlen Physick Estate, The Cape May Historical Museum, The Colonial House, Cape May Point State Park, The Physick Estate |
| Cove Beach | A quieter beach area that appeals to families and those looking for a serene getaway, perfect for relaxation and enjoying nature. | Cove Beach, Cape May Point State Park, Cape May Zoo, Nature Center of Cape May, Sunset Beach |
| Town Bank | Located just a short distance from Cape May, Town Bank is perfect for those looking for a more residential feel while still being close to the attractions of Cape May. | Del Haven Beach, Cape May County Park & Zoo, Sunset Beach, The Cape May Lighthouse, The Wetlands Institute |
| West Cape May | Charming small town featuring local shops, eateries, and farms. Attracts those looking for a quaint experience close to the Cape May attractions. | West Cape May Farmers Market, The Cape May Eagle, Washington Street Mall, Cape May Lighthouse, The Nauti Dolphin |
| Cape May Point | Known for its serene atmosphere and natural beauty, this area offers visitors a chance to enjoy the coastal lifestyle and outdoor activities. | Cape May Point State Park, Cape May Lighthouse, Sunset Beach, The Hawk Haven Vineyard and Winery, The Cape May Zoo |
| 4500 Landis Avenue | A short drive from the beach with family-friendly amenities and attractions, making it appealing for families looking to vacation in Cape May. | Cape May County Park & Zoo, The Sea Isle City Boardwalk, Avalon Beaches, Reeds Beach, The Wetlands Institute |
Understanding Airbnb License Requirements & STR Laws in Cape May (2025)
While Cape May, New Jersey, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Cape May to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Cape May (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Cape Maybased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
The Breakers - Charming beach block Victorian home
Entire Place • 8 bedrooms
Empress of Cape May Victorian Whole House Rental
Entire Place • 8 bedrooms
The Cape May Diamond
Entire Place • 9 bedrooms
NEW home ~ GREAT location
Entire Place • 6 bedrooms
The Ashley Rose - Main House Mansion
Entire Place • 7 bedrooms
Cape May Modern with Heated Pool/Porch Sleeps 16!
Entire Place • 6 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Cape May (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Cape May based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Bonnie | 8 | $764,912 | 54 | 3.11/5.0 |
| Andrew | 5 | $420,448 | 219 | 4.72/5.0 |
| Lisa | 3 | $410,157 | 99 | 4.86/5.0 |
| Michael | 6 | $369,775 | 204 | 4.67/5.0 |
| Anna | 4 | $341,351 | 151 | 5.00/5.0 |
| Julia | 4 | $341,129 | 267 | 4.93/5.0 |
| Tiffany | 3 | $340,165 | 91 | 4.95/5.0 |
| Jacob | 2 | $322,354 | 68 | 4.96/5.0 |
| R L Cape May | 6 | $317,287 | 662 | 4.86/5.0 |
| Kelly | 2 | $312,897 | 96 | 4.96/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Cape May.
Dive Deeper: Advanced Cape May STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Cape May. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsCape May Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Cape May
- The Cape May Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 87.9% of the 289 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Cape May, House properties are the most common (52.2%), reflecting the local real estate landscape.
- Houses represent a significant 52.2% portion, catering likely to families or larger groups.
- The presence of 11.4% Hotel/Boutique listings indicates integration with traditional hospitality.
Cape May Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Cape May
- The dominant room capacity in Cape May is 2 bedrooms listings, making up 24.9% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 2 bedrooms and 1 bedroom properties represent 49.5% of the active Airbnb listings in Cape May, indicating a high concentration in these sizes.
- A significant 46.4% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Cape May.
Cape May Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Cape May
- The most common guest capacity trend in Cape May vacation rentals is listings accommodating 8+ guests (36.3%). This suggests the primary traveler segment is likely larger groups.
- Properties designed for 8+ guests and 4 guests dominate the Cape May STR market, accounting for 56.4% of listings.
- 57.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Cape May.
- On average, properties in Cape May are equipped to host 5.6 guests.
Cape May Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Cape May
- The most common availability pattern in Cape May falls within the 181-270 days range, representing 46.4% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 83.1% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Cape May (46%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 19.3% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Cape May Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
41 listings
14.5% of total
2 Nights
110 listings
38.9% of total
3 Nights
58 listings
20.5% of total
4-6 Nights
10 listings
3.5% of total
7-29 Nights
22 listings
7.8% of total
30+ Nights
42 listings
14.8% of total
Key Insights
- The most prevalent minimum stay requirement in Cape May is 2 Nights, adopted by 38.9% of listings. This highlights the market's preference for shorter, flexible bookings.
- A significant segment (14.8%) caters to monthly stays (30+ nights) in Cape May, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 2 Nights minimum stay, as 38.9% of Cape May hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 14.5% currently do.
- A 2-night minimum appears standard (38.9%). Consider this for weekends or peak periods.
- Explore offering discounts for stays of 30+ nights to attract the 14.8% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Cape May.
Cape May Airbnb Cancellation Policy Trends Analysis (2025)
Non-refundable
2 listings
0.8% of total
Refundable
3 listings
1.2% of total
Super Strict 30 Days
3 listings
1.2% of total
Super Strict 60 Days
9 listings
3.5% of total
Flexible
15 listings
5.8% of total
Moderate
28 listings
10.9% of total
Firm
70 listings
27.2% of total
Strict
127 listings
49.4% of total
Cancellation Policy Insights for Cape May
- The prevailing Airbnb cancellation policy trend in Cape May is Strict, used by 49.4% of listings.
- A majority (76.6%) of hosts in Cape May utilize Firm or Strict policies, indicating a market where hosts prioritize booking security.
Recommendations for Hosts
- Consider adopting a Strict policy to align with the 49.4% market standard in Cape May.
- With 49.4% using Strict terms, this is a viable option in Cape May, particularly for high-value properties or during peak demand periods.
- Regularly review your cancellation policy against competitors and market demand shifts in Cape May.
Cape May STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Cape May
- The overall average booking lead time for vacation rentals in Cape May is 81 days.
- Guests book furthest in advance for stays during July (average 160 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in February (average 28 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (138 days avg.) sees the longest lead times, while Winter (47 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (81 days) as a baseline for your pricing and availability strategy in Cape May.
- For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 160 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 138 days) to capture early planners.
- Monitor your own booking lead times against these Cape May averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Cape May (2025)
Amenity Prevalence
Amenity Insights for Cape May
- Essential amenities in Cape May that guests expect include: Smoke alarm, Air conditioning, Wifi, Carbon monoxide alarm, TV. Lacking these (any) could significantly impact bookings.
- Popular amenities like Kitchen, Heating, Fire extinguisher are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Cape May: Smoke alarm, Air conditioning, Wifi, Carbon monoxide alarm, TV.
- Prioritize adding missing essentials: Smoke alarm, Air conditioning, Wifi, Carbon monoxide alarm, TV.
- Consider adding popular differentiators like Kitchen or Heating to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Cape May to stay competitive.
Cape May Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Cape May
- The typical guest profile for Airbnb in Cape May consists of primarily domestic travelers (97%), often arriving from nearby Philadelphia, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 97.4% of guests.
- Key international markets include United States (97.4%) and DC (1.6%).
- Top languages spoken are English (75.6%) followed by Spanish (9.1%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Target domestic marketing efforts towards travelers from Philadelphia and New York.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Cape May Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Stone Harbor | 34 | $5,711 | $639.17 | 45% |
| Harvey Cedars | 23 | $5,311 | $775.06 | 40% |
| Middletown Township | 10 | $5,208 | $392.83 | 53% |
| Cape May Point | 25 | $5,145 | $509.59 | 48% |
| Avalon | 75 | $5,056 | $661.69 | 39% |
| Surf City | 46 | $5,004 | $597.58 | 42% |
| Beach Haven | 83 | $4,856 | $534.63 | 46% |
| West Cape May | 98 | $4,574 | $422.74 | 47% |
| Long Beach Township | 160 | $4,540 | $690.89 | 38% |
| Dewey Beach | 198 | $4,482 | $451.13 | 43% |