It’s no secret that the pandemic was hard for vacation rental investors. Fortunately, things are looking up now. There are several factors why vacation rentals are now one of the brightest spots in real estate investing again. This has led to more people investing in this real estate niche. According to the New York Times, as of May, 52,000 new units have been added to platforms like Airbnb and Vrbo since 2021. Here are some things you might want to know about vacation rentals for 2022.
Increased Demand for Vacation Rentals
After years of little to no activity, we are starting to notice vacation rental popularity skyrocketing. According to a survey by Avolve, out of 5,000 respondents, 86% admitted that they are likely going to book a vacation rental in 2022. In 2021, a lot of travelers who tried to book rentals in popular destinations ended up failing or had a difficult time because of the large number of long stays. This has led to most guests booking well in advance so they can get the properties and dates that they want. To adapt to these increased lead times, hosts are offering flexible rebooking and cancellation policies.
Longer Vacation Rental Stays
According to AirDNA, the average length of vacation rental stays will continue to increase in 2022. In fact, the average length of stay has already doubled and tripled in the United States since before the pandemic started. With a lot of people working remotely, there is an increased need to switch things up and change scenery. This enables a lot of people to strike a balance between work and leisure without having to squeeze their vacations into a few days. Hosts should plan for more occupancy and potentially increased risks that come with longer stays.
Spike in Urban Travel
With the end of the pandemic, there is now a marked increase in urban travel. However, things have not really returned to their pre-pandemic state. AirDNA and other analysts predict that travel to big cities is likely to start by being more popular with domestic travel due to people visiting their families and going to business events. People are also starting to go to secluded destinations that have waterfront views and mountains. This is causing travelers and vacationers to look for unique types of accommodation like cabins, farmhouses, and glamping homes as opposed to purely luxury rental options.
These are some of the things you may want to know about the vacation and luxury rental space. Are you looking to resume travel? If so, get in touch with us so we can help you secure your next luxury rental.