On May 22, 2023, a report from the U.S. Travel Association revealed a significant increase in investment in vacation rental properties, as tourism rebounds in major destinations across the country. The key players in this trend include real estate investors, vacation rental platforms (such as Airbnb and Vrbo), property managers, and tourists, all of whom are capitalizing on the demand for private, flexible accommodation options.
A key moment in this trend was the post-pandemic surge in travel, which led to a rising demand for vacation rental properties in popular tourist locations such as beach towns, mountain resorts, and urban centers. With travelers seeking more personalized and private lodging options, investors are responding by purchasing properties and converting them into short-term vacation rentals that cater to the growing desire for unique travel experiences.
The lasting effect of this trend is likely to continue the growth of the vacation rental market, as more investors turn to short-term rentals as a lucrative business opportunity. In the long term, this could affect the local housing market in certain tourist-heavy areas, as the increase in vacation rentals may reduce the availability of long-term housing options for residents. As a result, cities and municipalities may consider stricter regulations to balance the needs of tourists and residents.