There is one niche market that stands above the rest.
As we speak, you would have a hard time finding a market that is more successful than this one.
Of course, we are talking about vacation rental by owner, which has taken the market and nation by storm.
People no longer book their stays in hotels at the clip they did five years ago. Instead, people look for homes where they can stay. In some cases, the home is cheaper. Not to mention more private.
It all depends on the budget, but you could rent an incredibly nice, glitzy home for the same price you get a hotel room. The big difference: you have the place to yourself. And how often do you get to stay in a huge home?
You also get a better idea of what the city is like as opposed to a hotel in the downtown area. It’s a side of the city you normally wouldn’t get the chance to explore or take in.
The way best to you see what the VRBO fab has done to the market is travel agencies like Expedia and Booking.com have jumped on board. They now offer vacation homes in their listings.
Studies have shown that more people are buying second homes with the intent to rent them out. The 2014 National Association of Realtors’ “Investment and Vacation Home Buyers Survey” revealed that 717,000 vacation homes were purchased in 2013.
Further research from HomeAway showed that 89 percent of those owners planned to rent the property within the next 12 months – with 86 percent of those who expected to do short-term rental, AKA as VRBO.
As the story linked above notes, “This all sounds exciting, yet the evolution of vacation rentals has brought with it many issues involving regulations and restrictions.”
But what is it doing to the rental market?
In San Francisco in 2012, we saw the short-term rentals disrupt the housing market. One could expect that will start to happen in Los Angeles, San Diego, New York and other destination cities and metro areas across the country.
Aside from the complaints of neighbors, the bigger concern for cities like San Francisco is these are places that could go to long-term residents. But the owners get way more capital from the short-term renters.
When it comes to apartments, you can understand why people have that fear.
But with this growing niche and how popular it is, people will have to put regulations in place or deal with it.
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