Interest in Purchasing a Vacation Rental Surges as Interest Rates Drop, Consumer Travel Preferences Shift
PORTLAND, Ore.–(BUSINESS WIRE)–Vacasa, North America’s largest vacation rental management platform, has released its 2020 edition of the Top 25 Best Places to Buy a Vacation Home report. The annual Top 25 Best Places to Buy a Vacation Home report was launched in 2018 and ranks the best U.S. destinations to invest in a vacation rental property by average cap rate (or yearly rate of return).
Interest rates have plummeted as a result of COVID-19 and other economic drivers. Mortgage rates on primary residences and second homes have hit all-time lows, and are currently being offered between 2% and 3.5%, depending on the lender. This, combined with employers encouraging their staff to work remotely as a result of the pandemic, has driven strong interest in vacation rentals.
“We’ve seen a surge in demand for vacation homes across our portfolio, and real estate transactions are up as much as 35% in some of our vacation rental markets across the country when compared to July 2019,” said VP of sales and marketing, Shaun Greer. “Many buyers believe we will be impacted by COVID-19 for the next 12 to 18 months, and are seeking a place close to home where they can get away with their families, work remotely if needed, and generate income when the home is not in use.”
Several markets from the 2019 Top 25 Best Places to Buy a Vacation Home report have once again ranked including Big Sky, Mont., Killington, Vt., Kissimmee, Flor., and Dauphin Island, Ala., among others. This year’s list reflects markets where single-family homes are the primary inventory type and opportunities for outdoor adventure are abundant. These consumer preferences have introduced several new markets to the list, and subsequently eliminated some popular vacation rental destinations.
Vacasa’s Top 25 Best Places to Buy a Vacation Home report is designed to help buyers seeking to invest in a vacation home by providing useful data, including estimated cap rate, annual gross rental revenue and median home cost for the market. Buyers who are interested in determining vacation rental earning potential for a specific property can utilize Vacasa’s vacation rental real estate calculator, which helps buyers factor cap rate, cash on cash, annual net operating income, and more. Vacasa also offers several resources on buying a vacation home.
Top 25 Best Places to Buy a Vacation Home Methodology
To determine its ranking of top vacation rental markets, Vacasa and its licensed subsidiaries (collectively “Vacasa”) analyzed home sales data from the last twelve months for vacation destinations throughout the country, and overlaid it with actual performance data for thousands of U.S. vacation rental properties. Vacasa utilizes data from the markets where it actively operates vacation rentals to ensure accuracy of performance. To calculate average cap rate, we considered the averages of the following in each market: property taxes, utilities, HOA fees, insurance, and property management fees.
Whether travelers are looking to book a weekend getaway or the trip of a lifetime, Vacasa is the trusted partner for all things vacation rental. Vacasa homeowners enjoy industry-leading financial returns on their vacation homes, delivered by the company’s unmatched technology platform that adjusts rates in real time and ensures revenue is always maximized. Guests can relax comfortably in one of Vacasa’s 25,000+ professionally managed homes, knowing that 24/7 customer care is just a phone call away. In the past 10 years, Vacasa and its licensed subsidiaries have grown to become North America’s largest full-service vacation rental management platform. For more information, visit https://www.vacasa.com/press. The Vacasa app is available to download on the Apple Store and Google Play.
Vacasa offers property management and other real estate services directly through Vacasa LLC and through Vacasa LLC’s licensed subsidiaries. Click here for more information about Vacasa’s licensed real estate brokerage/property manager in your state. Vacasa’s licensed real estate brokerages/property managers include: Vacasa Alabama LLC; Vacasa Arizona LLC; Vacasa Florida LLC; Vacasa Louisiana L.L.C. (licensed in Louisiana); Vacasa Michigan LLC, 947-800-5979; Vacasa Nevada LLC; Vacasa New Hampshire LLC, P.O. Box 283, Conway NH 03818, Dave Grant, Broker of Record; Vacasa New Mexico LLC, 503-345-9399; Vacasa New York LLC, 888-433-0068, Susan E. Scanlon, Real Estate Broker; Vacasa North Carolina LLC; Vacasa Pennsylvania LLC; Vacasa Real Estate Corporation, California DRE #02105811, Joseph Czapkowicz, California DRE #01380722; Vacasa Real Estate LLC (licensed in Idaho, Oregon, and Utah); Vacasa Real Estate LLC (licensed in Tennessee, 615-671-9916); Vacasa Real Estate LLC (licensed in Washington, Robert Brush, Designated Broker); Vacasa South Carolina LLC; Vacasa Tennessee LLC; Vacasa Vacation Rentals of Hawaii LLC, 3350 Lower Honoapiilani Road, Suite 600, Lahaina, HI 96761; Vacasa Vacation Rentals of Montana LLC, Patrice Tompkins, Licensed Property Manager; Vacasa Virginia LLC; Vacasa Wisconsin LLC.