Vacation Rentals Attract Young Buyers »RealtyBizNews: Real Estate News

Young adults show a lot of enthusiasm for vacation rental ownership. Indeed, the interest is so high that even with a limited credit history and little savings for a down payment, many are still able to find loopholes to make what they believe to be a very lucrative investment.

The proportion of homeowners under the age of 30 who purchased vacation property doubled between June 2019 and June 2021, according to Evolve, a vacation rental and hospitality management company, which offers bookable properties on its website. like Airbnb, and Vrbo.

This percentage is significantly higher than the 17% growth during this period among owners aged 31 to 56 or the decrease of 11% among those aged 57 to 75.

“This is clearly a growing segment,” Evolve co-founder and CEO Brian Egan told The Wall Street Journal.

A young investor is Zack North, 27, who told the Journal that he and a friend bought a 2,000-square-foot, four-bedroom vacation home outside of Asheville, North Carolina, for over $ 200,000.

“I think real estate is the safest and most sustainable way to build wealth,” North told The Journal. He started renting the house the first week the outbreak hit the United States last year. “

Young adults, it seems, are keeping a keen eye on the booming housing market and the demand for short-term rentals in particular, and are looking to take advantage of it.

“The kids I work with are tired of the norm,” said Jeramie Worley, management broker at Worley & Associates, a real estate company in Branson, Missouri. “There was no job when millennials entered the workforce. They were forced to find a better way to make a living. Vacation rentals provide this for people without the fear and anxiety of losing their jobs.

The idea of ​​owning a second home for rental purposes has been made even more appealing by the rise of online booking sites like Airbnb. Taylor Marr, chief economist at Redfin, told the Journal that in the past people would buy a lakeside cabin and use it maybe one month a year, then sit vacant the rest of the year. Nowadays, these types of properties should not be left empty.

“These portals have reduced the functional cost of the vacation home,” said Marr. “You can rent it to offset your costs. “

Other sites also appear to help you with the finances of purchasing and maintaining it. For example, AirDNA analyzes data from over 10 million short-term vacation rentals to help owners determine potential revenue. Other companies like Evolve can manage rental listings and photography, price nightly booking rates, and offer 24/7 customer support.

About Michael B. Billingsley

Check Also

Tourists are canceling trips to Ireland as renting cars is now more expensive than buying used

Tourists are fleeing Ireland and canceling their vacations due to the exorbitant cost of car …