{"id":2039,"date":"2020-05-25T03:50:43","date_gmt":"2020-05-25T03:50:43","guid":{"rendered":"https:\/\/housingmarketgroup.com\/?p=2039"},"modified":"2020-05-25T03:50:43","modified_gmt":"2020-05-25T03:50:43","slug":"seasonal-rentals-spike-in-tourism-hotspots-as-vacation-rental-hosts-wait-out-covid-19","status":"publish","type":"post","link":"https:\/\/housingmarketagentnetwork.com\/fr\/seasonal-rentals-spike-in-tourism-hotspots-as-vacation-rental-hosts-wait-out-covid-19\/","title":{"rendered":"Seasonal rentals spike in tourism hotspots as vacation rental hosts wait out COVID-19"},"content":{"rendered":"\n

COVID-19 hit the travel and hospitality industries hard this year, particularly for Airbnb hosts and others who rely on similar vacation rental platforms. As a result, furnished and seasonal rentals are spiking as vacation property owners across the country could be quickly transitioning their rentals from days to months. In the 100 largest metro areas, seasonal rental counts are up 21 percent since the end of February while traditional rental inventory has declined 2 percent. <\/p>\n\n\n\n

At a time when long-term rental listings are down, major tourism hubs like Nashville, TN and Austin, TX are showing a surge in short-term seasonal rentals. Faced with the realities of COVID-19 and travel restrictions, Airbnb hosts have adapted to entice more local appeal by renting their apartments for spring and summer months, oftentimes fully furnished.<\/p>\n\n\n\n

For now, the trend remains quite local, with Nashville, TN seeing the largest gains in furnished and seasonal rental counts, up 162 percent since the end of February. This growth in inventory is a massive departure from last year\u2019s trend, where furnished and seasonal rental counts in Nashville saw a 28 percent decline during that same period. Meanwhile, the rest of the Nashville rental market saw a 9 percent decline in rental inventory in the past few months.<\/p>\n\n\n\n

Despite growth in this sector of rentals, this increase in furnished and seasonal rentals still only accounts for an additional 1.2 percent of added inventory overall at a national level.<\/p>\n\n\n\n

Moreover, locals may not perceive any meaningful difference in their own search for housing. Property owners are keeping these units as short-term rentals, and these furnished and seasonal rentals don\u2019t necessarily fit the needs of typical renters who are looking for stable, long-term housing.<\/p>\n\n\n\n

The Tipping Point<\/strong><\/h4>\n\n\n\n

In mid-March, the US government declared a national emergency around the COVID-19 pandemic, suspending travel from Europe, and triggering economic shifts which rippled through travel and hospitality industries, among others.<\/p>\n\n\n\n

This crisis posed Airbnb hosts with multiple options. For now, the model of renting by the day seems to be off the table as travel has halted to standstill. Alternatively, if owners were feeling particularly strained, they could opt to sell the property outright. However, that option is now more challenging than usual. Typically, we would be nearing the peak of homebuying season right now if not for COVID-19. Our latest published weekly data shows that homes are taking 13 days longer to sell than the same time last year, the steepest slowdown since 2013. And with homebuyer sentiments at their lowest rates since the great recession, selling the properties is looking like a less viable option with each passing week.<\/p>\n\n\n\n

So then, extending the rental period to a monthly basis, or a short-term 3 months lease is still perhaps the fastest way to recoup lost income from the stagnant vacation rental market, while retaining the property and waiting out the COVID-19 situation.<\/p>\n\n\n\n

Unfortunately, renters looking for housing are unlikely to feel rental relief from added inventory as this boost is for less traditional short-term and furnished rentals and tend to be pricier compared to the rest of the market.<\/p>\n\n\n\n

While 3 months is short term compared to more common 6-month or 1-year leases, it\u2019s a massive change for hosts who were accustomed to renting out a property for just days at a time on Airbnb and other similar platforms.<\/p>\n\n\n\n

Fastest Growing Vacation Rental Transition Markets<\/strong><\/h4>\n\n\n\n

The Nashville, TN metro area leads the country in growth of furnished listings, signaling the impact of COVID-19 on vacation properties. In Nashville, long-term rental counts were up just 1 percent between the end of February and the last week of April. In that same period, the count of furnished rentals rose 157 percent. In 2019, furnished rentals were down 28 percent during that period.<\/p>\n\n\n\n

Nashville, TN Metro \u2013 Furnished and Short-Term Listings (2020 vs 2019)<\/strong><\/p>\n\n\n\n

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Austin, TX is also seeing similar results. In Austin, long-term rental counts were up 17 percent between the end of February and the last week of April. In that same period, the count of furnished rentals rose 129 percent. In 2019, furnished rentals were down 30 percent during that period.<\/p>\n\n\n\n

Austin, TX Metro \u2013 Furnished and Short-Term Listings (2020 vs 2019)<\/strong><\/p>\n\n\n\n

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Orlando, FL; Las Vegas, NV; and Chicago, IL metro areas round out the top five markets that have shown the largest gains in furnished rental listings following the COVID-19 national emergency lockdown.<\/p>\n\n\n\n

10 Fastest Growing Markets for Furnished\/Seasonal Rentals<\/strong> <\/h4>\n\n\n\n

*Last week of February vs last week of April<\/p>\n\n\n\n

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What does this mean for home sales?<\/strong><\/h4>\n\n\n\n

Will gains in rental inventory have a negative impact on home sales? In our Rent vs Buy report, we compare the cost of buying versus renting to see which options are more economical for potential homebuyers. So a major shift like this is worth investigating.<\/p>\n\n\n\n

The short answer is that this likely will not affect home sales or for-sale housing inventory much, if at all. <\/p>\n\n\n\n

There are a few reasons for this: rental prices, and rental terms. Because these units are furnished and require a lower commitment of stay, they are priced significantly higher than the rest of their respective markets. From our top 10 list above, the rental prices for furnished and seasonal rentals range from 9 percent higher than the traditional rentals in Honolulu, HI up to over double the price (116%) in Bridgeport, MA. As for rental terms, these properties\u2019 owners are looking for short-term stays, typically lasting for 3 months or less, whereas most renters are looking for a longer-term, stable housing solution. Because of this mismatch in the supply and demand profiles, it\u2019s unlikely that a person trying to decide between renting and buying will be swayed by these new options.<\/p>\n\n\n\n

Methodology<\/strong><\/p>\n\n\n\n

Metros eligible for analysis had at least 100 furnished\/short-term rentals in the last week of April, based on realtor.com data. Properties were identified as furnished\/short-term by matching a variety of related keywords to property descriptions on realtor.com. Rental units include single family homes, condos, townhomes, apartments and other multifamily housing. Philadelphia was excluded while its data is under review. National statistics presented here are a composite of the 100 largest metros. Inventory growth trends were calculated by comparing the last week of February to the last week of April.<\/p>\n","protected":false},"excerpt":{"rendered":"

COVID-19 hit the travel and hospitality industries hard this year, particularly for Airbnb hosts and others who rely on similar vacation rental platforms. As a result, furnished and seasonal rentals are spiking as vacation property owners across the country could be quickly transitioning their rentals from days to months. In the 100 largest metro areas, […]<\/p>\n","protected":false},"author":3,"featured_media":2049,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[62,153,23,154,155,156,157],"class_list":["post-2039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-market","tag-covid-19","tag-seasonal-rentals","tag-thailand-housing-market","tag-tourism","tag-tourism-hotspots","tag-vacation","tag-vacation-rental"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t