Top Markets to Buy a Vacation Rental in 2020
July 21, 2020
Real estate investors are scrutinizing second-home markets in hunt for growth opportunities, even during the pandemic. After all, “travel doesn’t stop when the economy weakens, it changes where people travel,” a new report from Rented Inc., a rental management site, and Weiss Analytics notes.
“In 2020, travelers want to stay closer to home and they are seeking genuine experiences. High on the list are Instagram-worthy, outdoor locations, and the highest returns come from homes that enhance the guest experience,” the report states. Rented and Weiss note a “dramatic shift” in drive-to destinations and markets within two to five hours of major metro areas, which are seeing some of the highest returns in vacation home rentals.
Where can investors find the best returns in 2020? Rented Inc. and Weiss Analytics released their fifth annual findings of the top vacation rental markets, based on places that offer the highest returns on investment. The rankings, based on a three-bedroom, two-bath stand-alone home, compare vacation housing hot spots’ cost of homeownership, short-term revenue potential, cost to acquire, and annual appreciation as well as projected changes in asset value.
Updated: June 14, 2021