Over the past handful of years, the vacation rental industry has thrived. And experts believe this trend won’t slow anytime soon. By 2024, many think the vacation rental industry will top $62.7 billion.
Of course, the coronavirus has impacted many areas of travel and hospitality. Yet, rental properties have rebounded rapidly.
Why? Because of shifting vacation behaviors in 2020. Today, short-term rental property investment has never looked more lucrative.
After all, cabin fever has reached an all-time high. And travelers want to hit the open road.
Where’s the best place to buy a vacation rental? Keep reading for our comprehensive guide to buying a vacation rental.
The Best Place to Buy a Vacation Rental
The American road trip is back in full force. While people are jonesing for a vacation, avoiding crowds remains a top priority. Travelers nationwide remain in hot pursuit of the stress-free beauty and fresh air only Nature can offer.
There’s never been more demand for “hidden gem” properties and locations. Travelers are after small-town experiences. As a result, there’s never been a better time to invest in some of the country’s quaintest vacation rental destinations.
What criteria should you consider when looking for the best place to purchase a vacation rental property? Consider factors such as:
- Estimated annual expense to run a vacation rental
- 2020 median home values
- Vacation rental performance metrics
You should also pay attention to a property’s ability to outperform market expectations. In other words, find a property that maximizes income. Choose wisely, and you stand to surpass even the market’s projected revenue.
Let’s take a closer look at top picks for investment properties in 2021 and beyond. Each of these properties performs well in the areas outlined above.
The Catskills, New York
Located a few hours north of New York City, you’ll find the Catskills. A lush mountain range, the Catskills are punctuated by idyllic small towns.
Scenic natural landscapes prove plentiful. But travelers also come in droves to visit area restaurants, distilleries, and even cider orchards.
Guests will enjoy endless outdoor recreational options. They can also take advantage of family-friendly activities and romantic getaways. There’s something for travelers of every stripe and age.
From eclectic Woodstock to pastoral Margaretville and the “gem of the Catskills,” Windham, the perfect investment community awaits. But if you’re considering real estate in this market, you should act fast. Over the past two years, the area has witnessed 40 percent growth.
Cape Coral, Florida
Are you interested in a beach vacation rental? If so, check out Cape Coral. Located on the Gulf of Mexico, you’ll fall head over heels with this quaint coastal haven, renowned for its sandy coves and ocean views.
Nearby aquatic and ecological preserves provide chances to experience Florida’s rich biodiversity. From kayaking to bird watching and fishing, outdoor activities prove plentiful.
Unlike other parts of the Sunshine State where you’ll find pricey HOA fees, Cape Coral is largely unburdened by regulations. As a result, you’ll enjoy fewer homeowner-related fees and a clear path to return on investment (ROI) on income property.
Are you interested in more fantastic Florida vacation options? Disney vacation rental properties provide excellent options sure to stay busy year-round. From Saratoga Springs to Lake Buena Vista’s Boardwalk Villas, get on the waitlist for DVC to find out more.
Ruidoso, New Mexico
Situated in the Sierra Blanca mountain range, the paradisaical city of Ruidoso attracts travelers year-round. A haven for cowboys and snowboarders alike, Ruidoso Winter Park and Ski Apache Resort slopes provide the perfect spots for skiers, snowmobilers, and snowshoers.
During the summer months, head to jaw-dropping Bonito Lake for fun on the water. Visitors will also find plenty of activities no matter the season. From excellent shopping to delicious restaurants and an active casino nightlife.
Expect to see median revenue returns of just under $30,000 annually. That said, some homeowners report earning six figures in little more than a year-and-a-half. For these reasons, Ruidoso is solidly one of the best places to buy an investment property for vacation rental.
Pigeon Forge, Tennessee
Pigeon Forge sits in the heart of the Smoky Mountains, making it an ideal southern vacation rental spot. This picturesque location is ideal for a wide array of travelers, from couples in pursuit of a romantic getaway to nature lovers and families on-the-go.
Besides exploring Great Smoky Mountains National Park, visitors are well-placed to access Dollywood. Kids will love the water slides and rides, and parents will appreciate the wholesome atmosphere. During the holidays, Dollywood draws a steady stream of guests interested in celebrating a hometown Christmas.
And when the snow starts flying? Winter sports enthusiasts can head to the Ober Gatlinburg resort for fresh powder fun.
Coupled with the area’s proximity to Gatlinburg and Sevierville, buying a vacation rental in Pigeon Forge comes with impressive ROI and year-round occupancy.
The Poconos, Pennsylvania
Pennsylvania’s Poconos remain another excellent vacation rental property investment. Nearby townships like Pocono Lake, Albrightsville, and Tobyhanna, attract guests, no matter the season. The area contains picturesque mountain views and expansive woodlands.
Guests will never lack for something to do from winter skiing to autumnal hikes and summer water sports. Yet, small-town charm also abounds 24/7/365. Waterfront properties near Arrowhead Lake or Lake Wallenpaupack remain particularly popular at the moment.
Invest in a Vacation Rental Property
You’ve got plenty of great options when it comes to finding the best place to buy a vacation rental.
From the wilds of Pennsylvania’s Poconos to the Catskills of New York, your guests will love these cabin-ready options. But sunny spots in Florida and New Mexico also provide a welcome getaway with attractive outdoor activities.
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