It’s always festival season in Santa Cruz, and that’s because the weather is always near-perfect, the views from many points in the city are stunning, and there’s always someone or some group willing to perform for an eager audience of music and art lovers. 

Santa Cruz, with its stunning beaches and diverse cultural scene, is more than just a picturesque coastal town that draws surfers and vacationers. It is a hub for local festivals that appeal to locals (it’s a big reason why we live here!) and attracts thousands of visitors each year. 

If you’re renting out a short-term property or a vacation home in Santa Cruz, you’re probably pretty sensitive to the seasonal shifts and the different pricing models that local festivals will support. But what is the real impact of local festivals on the Santa Cruz rental market?

We’re taking a look at that today because in general, it delivers positive outcomes. But that doesn’t mean there aren’t challenges to overcome. 

Join us as we explore how these lively events influence rental demand, pricing, and investment opportunities.

Festivals Drive a Boost in Rental Demand

Each year, Santa Cruz hosts a variety of festivals that draw both tourists and locals to parks, theaters, and outdoor spaces. Events such as the Santa Cruz Beach Boardwalk's Summer Concert Series, the Wharf to Wharf Race, and the O'Neill Coldwater Classic are just a few examples. We have the Santa Cruz Mountain Sol Festival and the Harvest Festival. There’s Santa Cruz Pride and ongoing events at local wineries and at UC Santa Cruz. These festivals significantly drive up demand for short-term rentals as attendees seek convenient accommodations close to the action.

For property investors, this increase in demand presents a lucrative opportunity to capitalize on high rental prices. By renting out properties during festival seasons, investors can maximize their return on investment (ROI) and potentially cover a year’s mortgage payments in just a few peak weeks. This is what attracts so many owners to short-term rentals. The per-night average really jumps when there’s something going on. Be prepared to leverage that.

Seasonal Pricing and Revenue

Local festivals not only boost demand but also allow for strategic pricing adjustments. During peak festival times, rental prices can be raised by 20-30%, increasing overall annual rental income. It’s important for property investors to stay informed about the festival calendar and adjust pricing accordingly to maximize revenue. If you’re renting out a Santa Cruz home from outside of the area, you may not be aware of who and what is coming to town throughout the year. A local property management expert can help.

Platforms like Airbnb offer dynamic pricing tools that help property owners set competitive rates based on local events and market trends. But you can access even more reliable data from your property management partner, by leveraging our technologies. This allows investors to optimize their pricing strategy and ensure their property remains attractive to festival-goers.

Long-term Investment Opportunities

While short-term rental gains during festival seasons are appealing, property investors should also consider the long-term benefits of owning real estate in Santa Cruz. The town's vibrant cultural scene and reputation as a tourist hotspot contribute to steady property appreciation over time.

Investors can focus on properties that are not only close to festival venues but also have year-round appeal, such as those near the beach or downtown area. This dual strategy ensures properties remain desirable both during and outside of festival seasons, providing a consistent stream of rental income.

With more and more properties being turned into short-term or vacation rentals, long-term rental homes are in even higher demand. There’s less inventory, and that boosts prices. You’ll benefit from our festivals in Santa Cruz no matter what type of home you’re renting out.

Building a Loyal Guest Base

Festivals offer property investors the chance to build a loyal customer base. By providing exceptional hospitality and memorable experiences to festival attendees, investors can encourage repeat bookings and positive reviews, which are invaluable in the competitive rental market. If someone really loves a particular festival, they’re likely to return every year. Give them a reason to return to your property. 

Consider offering festival-specific amenities or partnerships with local businesses to enhance guests’ stays. For example, providing complimentary tickets to events or offering discounts at nearby restaurants can make your property stand out and entice guests to return year after year.

Consider the Community Impact