Palmerston North Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Manawatū-Whanganui, New Zealand
Is Airbnb profitable in Palmerston North in 2025? Explore comprehensive Airbnb analytics for Palmerston North, Manawatū-Whanganui, New Zealand to uncover income potential. This 2025 STR market report for Palmerston North, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 173 active listings.
Whether you're considering an Airbnb investment in Palmerston North, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Palmerston North 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 Palmerston North Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Palmerston North (2025)
Understanding the monthly revenue variations for Airbnb listings in Palmerston North 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 Palmerston North is typically May, while February often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Palmerston North across different performance tiers:
- Best-in-class properties (Top 10%) achieve $3,747+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $2,385 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $1,265 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $617, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Palmerston North
Palmerston North Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Palmerston North STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Octobersees the highest demand (peak season occupancy), while June 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 Palmerston North:
- Best-in-class properties (Top 10%) achieve 86%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 72% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 49%.
- Entry-level properties (Bottom 25%) average 26% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Palmerston North
Average Daily Rate (ADR) Airbnb Trends in Palmerston North (2025)
Effective short term rental pricing strategy in Palmerston North involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Palmerston North typically peaks in November and dips lowest during March. 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 $174+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $129 or more.
- Typical properties (Median) charge around $73 per night.
- Entry-level properties (Bottom 25%) earn around $47 per night.
Average Daily Rate (ADR) Trend by Month in Palmerston North
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Airbnb Seasonality Analysis & Trends in Palmerston North (2025)
Peak Season (May, April, June)
- Revenue averages $1,919 per month
- Occupancy rates average 44.6%
- Daily rates average $97
Shoulder Season
- Revenue averages $1,651 per month
- Occupancy maintains around 51.4%
- Daily rates hold near $98
Low Season (February, March, August)
- Revenue drops to average $1,436 per month
- Occupancy decreases to average 49.7%
- Daily rates adjust to average $96
Seasonality Insights for Palmerston North
- The Airbnb seasonality in Palmerston North shows moderate seasonality with distinct peak and low periods. 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 Palmerston North's highest earning potential, with monthly revenues capable of climbing to $1,982, occupancy reaching a high of 56.5%, and ADRs peaking at $101.
- 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 $1,360, occupancy could drop to 40.6%, and ADRs may adjust down to $95.
- 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 Palmerston North.
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 Palmerston North seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Palmerston North (2025)
Exploring the top neighborhoods for short-term rentals in Palmerston North? 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 |
|---|---|---|
| Fitzherbert | A vibrant suburb close to Massey University, popular with students and families. Well-connected to the city center with a range of amenities and parks. | Massey University, Victoria Esplanade, Palmerston North Hospital, Retail shops, Parks and walking trails |
| Ashhurst | A charming village located on the outskirts of Palmerston North, known for its natural beauty and outdoor activities. Attracts those who enjoy a quieter, suburban lifestyle. | Ashhurst Domain, Te Apiti - Manawatu Gorge, Local cafes and shops, Outdoor adventure activities, Scenic walking tracks |
| Central Palmerston North | The heart of the city, offering a mix of business, shopping, and entertainment. Ideal for urban travelers wanting access to cultural events and nightlife. | The Square, Te Manawa Art Gallery, Palmerston North Convention Centre, Local restaurants, Nightlife venues |
| Roslyn | A picturesque suburb known for its hilltop views and historic homes. Popular with families and professionals looking for a suburban atmosphere close to the city. | Roslyn Park, Botanical Gardens, Local cafes, Scenic views, Historic architecture |
| Milson | A residential area with easy access to the airport and major roads. Attracts business travelers and those needing quick access to transportation. | Milson Airport, Local parks, Community facilities, Shopping centers, Transport links |
| Takaro | A residential neighborhood with a family-friendly vibe, offering parks, schools, and community facilities. Attractive for long-term stays and family vacations. | Takaro Park, Local schools, Community sports facilities, Family-friendly atmosphere, Playgrounds |
| Linton | A semi-rural area that offers a peaceful lifestyle, popular with those looking to escape the urban hustle. Great for nature enthusiasts and families. | Linton Army Camp, Local farms, Scenic countryside, Walking and biking trails, Community events |
| Terrace End | A well-established suburb known for its community spirit and proximity to the city. Ideal for visitors who want a local experience with easy access to amenities. | Terrace End shops, Local parks, Community events, Transport links, Proximity to the city center |
Understanding Airbnb License Requirements & STR Laws in Palmerston North (2025)
While Palmerston North, Manawatū-Whanganui, New Zealand 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 Palmerston North to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Palmerston North (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Palmerston Northbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Riverdale Retreat - Spa pool & bath, & near shops
Entire Place • 5 bedrooms
Cozy Home Near City Centre
Entire Place • 4 bedrooms
Bush surrounded retreat - minutes from city centre
Entire Place • 4 bedrooms
Modern & Spacious Home!
Entire Place • 4 bedrooms
Charming Character Home
Entire Place • 2 bedrooms
3 Bedroom home away from home in Palmerston North
Entire Place • 3 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Palmerston North (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Palmerston North 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 |
|---|---|---|---|---|
| Wei | 5 | $115,885 | 146 | 4.82/5.0 |
| Lydia | 4 | $108,826 | 1157 | 4.78/5.0 |
| Kathy | 4 | $103,208 | 234 | 4.98/5.0 |
| Sarah | 2 | $101,809 | 284 | 4.91/5.0 |
| Host #271228684 | 4 | $74,333 | 0 | 0.00/5.0 |
| Dwayne | 3 | $72,888 | 47 | 4.97/5.0 |
| Rosette | 2 | $71,813 | 38 | 4.77/5.0 |
| Drovers | 3 | $69,019 | 56 | 4.80/5.0 |
| Amanda | 3 | $63,655 | 189 | 4.94/5.0 |
| Tom | 2 | $62,134 | 278 | 4.67/5.0 |
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 Palmerston North.
Dive Deeper: Advanced Palmerston North STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Palmerston North. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsPalmerston North Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Palmerston North
- The Palmerston North Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 62.4% of the 173 active rentals. This indicates strong guest preference for privacy and space.
- However, a notable 37% share for Private Rooms suggests opportunities for budget-conscious travelers or hosts renting out spare rooms.
- Looking at the property type distribution in Palmerston North, House properties are the most common (50.9%), reflecting the local real estate landscape.
- Houses represent a significant 50.9% portion, catering likely to families or larger groups.
- The presence of 19.1% Hotel/Boutique listings indicates integration with traditional hospitality.
Palmerston North Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Palmerston North
- The dominant room capacity in Palmerston North is 1 bedroom listings, making up 31.8% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 49.1% of the active Airbnb listings in Palmerston North, indicating a high concentration in these sizes.
- A significant 24.3% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Palmerston North.
Palmerston North Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Palmerston North
- The most common guest capacity trend in Palmerston North vacation rentals is listings accommodating 2 guests (22%). This suggests the primary traveler segment is likely couples or solo travelers.
- Properties designed for 2 guests and 4 guests dominate the Palmerston North STR market, accounting for 35.3% of listings.
- 20.1% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Palmerston North.
- On average, properties in Palmerston North are equipped to host 3.0 guests.
Palmerston North Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Palmerston North
- The most common availability pattern in Palmerston North falls within the 271-366 days range, representing 31.8% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 55.5% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 181-270 days range is most frequent in Palmerston North (28.9%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 46.2% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Palmerston North Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
112 listings
67.1% of total
2 Nights
34 listings
20.4% of total
3 Nights
1 listings
0.6% of total
4-6 Nights
2 listings
1.2% of total
7-29 Nights
4 listings
2.4% of total
30+ Nights
14 listings
8.4% of total
Key Insights
- The most prevalent minimum stay requirement in Palmerston North is 1 Night, adopted by 67.1% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (87.5%) of the Palmerston North Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
Recommendations
- Align with the market by considering a 1 Night minimum stay, as 67.1% of Palmerston North hosts use this setting.
- Explore offering discounts for stays of 30+ nights to attract the 8.4% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Palmerston North.
Palmerston North Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
76 listings
47.5% of total
Moderate
53 listings
33.1% of total
Firm
20 listings
12.5% of total
Strict
11 listings
6.9% of total
Cancellation Policy Insights for Palmerston North
- The prevailing Airbnb cancellation policy trend in Palmerston North is Flexible, used by 47.5% of listings.
- The market strongly favors guest-friendly terms, with 80.6% of listings offering Flexible or Moderate policies. This suggests guests in Palmerston North may expect booking flexibility.
- Strict cancellation policies are quite rare (6.9%), potentially making listings with this policy less competitive unless justified by high demand or property type.
Recommendations for Hosts
- Consider adopting a Flexible policy to align with the 47.5% market standard in Palmerston North.
- Using a Strict policy might deter some guests, as only 6.9% of listings use it. Evaluate if potential revenue protection outweighs possible lower booking rates.
- Regularly review your cancellation policy against competitors and market demand shifts in Palmerston North.
Palmerston North STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Palmerston North
- The overall average booking lead time for vacation rentals in Palmerston North is 52 days.
- Guests book furthest in advance for stays during February (average 70 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in August (average 36 days), indicating more last-minute travel plans during this time.
- Seasonally, Winter (61 days avg.) sees the longest lead times, while Spring (46 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (52 days) as a baseline for your pricing and availability strategy in Palmerston North.
- For February stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 70 days out to capitalize on advance planning.
- Target marketing efforts for the Winter season well in advance (at least 61 days) to capture early planners.
- Monitor your own booking lead times against these Palmerston North averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Palmerston North (2025)
Amenity Prevalence
Amenity Insights for Palmerston North
- Essential amenities in Palmerston North that guests expect include: Smoke alarm, Wifi. Lacking these (any) could significantly impact bookings.
- Popular amenities like Free parking on premises, Heating, Hot water are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Palmerston North: Smoke alarm, Wifi.
- Prioritize adding missing essentials: Smoke alarm, Wifi.
- Consider adding popular differentiators like Free parking on premises 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 Palmerston North to stay competitive.
Palmerston North Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Palmerston North
- The typical guest profile for Airbnb in Palmerston North consists of primarily domestic travelers (81%), often arriving from nearby Auckland, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Chinese.
- Domestic travelers account for 80.8% of guests.
- Key international markets include New Zealand (80.8%) and Australia (7%).
- Top languages spoken are English (71.8%) followed by Chinese (4.1%).
- 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 Auckland and Wellington.
- 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 Palmerston North 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 |
|---|---|---|---|---|
| Havelock North | 212 | $2,118 | $231.44 | 44% |
| Martinborough Community | 224 | $2,056 | $192.31 | 38% |
| Picton | 104 | $1,857 | $170.00 | 46% |
| Waimārama | 48 | $1,856 | $349.16 | 26% |
| Clive | 24 | $1,832 | $180.50 | 40% |
| Egmont Village | 12 | $1,697 | $118.42 | 47% |
| Paekākāriki | 14 | $1,686 | $123.12 | 45% |
| Hastings | 178 | $1,676 | $172.19 | 43% |
| Horopito | 11 | $1,618 | $258.74 | 33% |
| Te Awanga | 37 | $1,612 | $225.22 | 37% |