There’s no denying 2020 was a challenging year that forced unprecedented change upon individuals and businesses all around the world. The last twelve months were especially turbulent for the vacation rental industry as markets closed and reopened, and vacation rental managers (VRMs) implemented new procedures to ensure safe environments for guests. While travel may look different now than it did last year, there are several emerging trends that demonstrate why owning a vacation rental can still be a smart decision.
If you’ve been exploring the idea of purchasing a vacation rental, now is the time. While many travelers endured trip cancellations last year, their excitement for planning future vacations hasn’t diminished. According to Vrbo’s 2021 Trend Report, 82% of the families they surveyed already had travel plans for the new year. However, one aspect that has changed significantly is the type of destinations travelers are choosing to visit. Despite markets being shut down for months, some homeowner’s 2020 annual revenue significantly exceeded their 2019 rental income.
Drive-to destinations continue to gain tremendous popularity. Vrbo states that demand for cabins increased by nearly 25% and chalets increased by 20%. These types of vacation rentals are typically located in vacation destinations within driving distance of major metropolitan areas (aka drive-to markets), and usually come with the benefit of outdoor features such as beaches, mountains or lakes. Overall, Vrbo found that 65% of families plan on traveling more now than they did pre-COVID. The full report details several other interesting findings, but the bottom line is the right vacation rental home with the right amenities in the right market is a great investment.
Whether it’s the tree-covered mountains of Pigeon Forge, TN or the southwestern desert beauty of Sonoma, AZ, vacation rentals can produce annual income while also providing families with a beloved second home. If you’re on the lookout for a COVID hideout, a vacation rental home is a great escape from reality. Many people are taking advantage of the ability to work remotely and planning extended stays with their families.
The real estate market has also flourished during the pandemic as 2020 produced the highest level of home sales since 2006, which was also driven by low interest rates. This unexpected wave has led to limited inventory and many buyers are facing significant challenges in trying to find a vacation rental home.
That’s where Revedy comes in — We review hundreds of listings every day and advise our clients on industry trends to support them in their home search. At Revedy, we are excited about the new trends in travel and look forward to helping home buyers successfully purchase investment homes during the upcoming year.
Revedy makes your dream a smart decision. Our team of vacation rental experts and real estate consultants help buyers and sellers navigate the sales process in vacation rental markets nationwide. We leverage our proprietary tools to analyze market data and support our investors in making informed decisions. If you are considering investing in a vacation home or have any questions, please call us at (503) 908-5225 or email inquiry@revedyhome.com