Trending – Vacation Homes are No Longer for Fun
According to research done by home sharing company HomeAway, vacation home owners are prioritizing rental income over personal use for the first time ever. In a survey done over February and March of this year, 4300 property owners were asked how they viewed their property, and what their motivation was to buy it. Global tourism is growing, with international tourists reaching a record 1.3 billion people last year, and the increase in sites like HomeAway and Airbnb makes it easier for people to get extra income from their homes.
According to the study, over two thirds of second homeowners now have their homes to rent out to travelers, which is up for the first time in 30 years. In addition, this rental income is viewed by buyers not just as a way to cover the expenses, but as a way to actively make a profit. The average gross yield from the survey samples is 6.4%, so if they are getting into it to make a profit there is certainly a profit to be made.
Many of the experts consulted on this survey are crediting the digital age, which is making it easier for tourists and travelers to access rentals. They are often much more accessible and less expensive than hotels, so they are drawing in consumers in droves and making purchasing a rental property seem a lot more attractive. This trend has not seen a slow down since it exploded onto the market, and it is unlikely to in the next few years. This trend of people looking for vacation rentals as a secondary form of income may only become more popular as time goes on, until something shakes up the market or the habits of tourists.