One of the most important outlooks for any year is how the housing market is expected to do. When you own a short-term vacation rental, you understand just how important these changes can be. Being a homeowner is not a cheap investment, especially with the cost of homes rising over the years since the pandemic. 2025 is expected to see a continued change in the market that is sure to impact short-term rentals and their renters. Take a look at rental market trends we expect to see in 2025 this year:
Increase in Demand for Rentals
A big part of the conversation with incomes since the pandemic is the rise of inflation. The sudden rise over the years has impacted families hard and continues to do so. However, a part of the conversation that is not so thoroughly looked at is the rise in family incomes. Working families are now making more than ever, and this extra income will roll over into their interest for a short-term vacation rental. Families with more expendable money will want to book a stay at a property that provides amenities and space. This increase in demand is expected to be seen in our properties with a renewed interest in renters wanting to avoid hotel rooms. Keep this increase in demand in mind for 2025 to have a favorable outlook for the year.
Increase in Rental Property Interest
With additional income, more individuals want to take a step into the short-term rental market. As you have seen with your property, owning a short-term vacation rental is a great way to add some additional income for the year. This interest is further increased with the slow drop of interest rates year to year. Interest rates were at a recent high due to the pandemic but have been slowly dropping over the years. The combination of extra income and lower interest rates means more individuals will have an interest in owning a short-term vacation rental. Existing short-term rental owners such as yourself will have a leg up on the market as you are familiar with how to navigate the purchase of an additional home. Take advantage of the lower interest rates to explore the option of adding another home to your short-term vacation portfolio.
More Individuals Enjoying Workcations
Many employees have been enjoying the work from home life since the pandemic. During this time, many businesses had to close down their office buildings and send workers home. This result had many employees enjoying their new way of work life, resulting in higher employee satisfaction. Many businesses continue to offer work from home as a benefit for their employees. This allows many employees to continue working even when the family is on a vacation. We are expecting to see a continued increase in families enjoying a “workcation,” or vacation while someone is still working. Vacation rentals provide employees with a workspace so they can comfortably work during their stay. Hotel rooms are unable to provide this space. We welcome all of our working families looking to enjoy a comfortable stay while saving up on their paid time off days.
Increase in the Costs of Home Ownership
While the interest for short-term rentals continues to rise going into 2025, so will the overall cost of home ownership. This is a typical trend we have seen year to year and is expected to continue into 2025. Many of the associated costs of homeownership, including HOA fees, are the reason for the rising cost of homeownership. HOA neighborhoods provide a standard that all properties must follow perfect for vacation rentals. The rise of inflation can also see an increase in the costs of homeownership with materials needing to support your home costing more.
An Increase in Demand for Unique Rentals
With some families having access to high incomes, they will want to spend their hard-earned money on properties that truly stand out to them. 2025 is expected to see traveling families want to find properties that are unique and inviting. This can be expected to be seen as families booking properties that are recently renovated and offer a modern ambience. Families will also want to find properties with extra amenities such as swimming pools or outdoor features. By having your home provide a modern look with luxury amenities, you can help your property stand out among all the others available on the market.
Get Ready for 2025
The time is now to start preparing for another successful year of short-term rental home ownership. Our team is ready to assist you in updating your property and getting the best return on your investment. Contact our team today to see how.
