Short-term rental boom through Vacation Property - Investment.

“More people buy second homes, but less than half of the owners use them for more than four weeks a year, for this reason they are ideal for generating profitability through short-term rental.

The acquisition of vacation properties was considered a luxury reserved only for the ultra-rich, but the pandemic accelerated the desire of many people to invest in a property for a getaway or to generate returns on investment.

There has been a large increase in people who are interested in owning a second home now compared to pre-Covid times, a trend that will likely continue after the pandemic.

For this reason, to help you focus your investment decisions on the American real estate market, we provide you with the best cities in the United States to buy a vacation home that you plan to rent.

Americans escaped home life with outdoor vacations the summer of 2020 between June and September, driving demand for vacation home rentals up to 35% in major markets.

As rental homes become even more lucrative investments, vacation home buyers can get the best return on their investment by renting their homes. States such as Pennsylvania, Colorado, California, Texas, Florida, among others, stand out.

“People are really looking forward to outdoor activities. And all of those locations really characterize an opportunity for people to just get away, have a change of scenery and enjoy the great outdoors, ”said Vacasa CEO Matthew Roberts, who told Yahoo Finance On the Move that the properties in these areas they are relatively affordable considering what they can charge when renting their houses.

Colorado had the most lucrative locations, with Vail, Silverthorne, Breckenridge, and Steamboat Springs on the list. California also had three on the list: Palm Springs, Big Bear, and Mammoth Lakes. And Florida's popularity increased compared to last year, with Orlando Kissimmee (vacation properties near major tourist spots), Key West and Panama City as the top investments.

“People just don't want to be at home anymore. They want a change of scenery. And if you combine that with the freedom that people now have to work remotely, and then add distance learning for children, it really creates a good situation for homeowners who rent their properties,” said Roberts.

US, repressed real estate demand in 2020?

The overall vacation rental industry boom for the US market comes after the coronavirus pandemic nearly paralyzed the short-term rental industry in March and April 2020. Bookings hit a record low in April and revenue per room fell 80% compared to April 2019. Some 74,000 hosts withdrew their homes from the market before the vacation rental industry recovered in May and this same boom continued to increase by as much as 20% in the following months 2020 versus 2019, according to AirDNA, a short-term rental data and analytics company based in Denver, Colorado. (Positive point for investors).

It was considered that there would be a lot of repressed demand, and boy, to everyone's surprise, it "rebounded" and currently the market for vacation homes or investment is at record volumes, presenting decreases in the real estate supply (there has been a greater demand vs. offer). Property developers are on the run to meet this demand by 2021.

Once again the real estate market reaffirms being one of the most solid and stable pillars in investment matters.

"It's not your imagination: everyone really wants a second home and we at Boyd’s Realty have the best investment vacation properties to bring you."