ATLANTA, Dec. 22, 2021 /PRNewswire/ -- Rented, Inc., today announced its sixth annual report on the 100 Best Places to Buy a Vacation Rental Property in 2021, providing insights into the most profitable cities for rental property investment and how this profitability varies each year.
"Travel for the last nearly two years has been disrupted. Demand continues to vary considerably, with drive-to markets seeing significant growth. Skipping the flight and creating a working vacation is a trend we began to see in 2020 that continues," said Andrew McConnell, CEO of Rented, Inc. "The Rented Report helps both rental property buyers and owners, as well as professional vacation rental property managers, understand the dynamics of the vacation rental market and narrow their search for the most profitable cities."
The "Best Places to Buy" in 2021 includes a few repeats and a few surprises when compared to previous years' reports. Among the top 25 cities, eight were listed on both prior lists, and six were listed on all prior Rented.com's annual reports. The top five cities in 2021 included mostly southern or beach destinations.
The top five real estate markets with the highest return on investment (ROI) for rental properties in 2021 include:
- Pensacola, Florida
- Pigeon Forge, TN
- Virginia Beach, VA
- Corpus Christi, TX
- Daytona Beach, FL
The ROI of owning a rental property is determined by comparing costs of homeownership to short-term rental potential in various U.S. rental markets. Factors influencing these figures include purchase price, insurance, taxes, maintenance costs, the popularity of the destination, local rental rates, and more.
COVID Impacts Trends in Vacation Rentals
The overall picture of 2021 is mixed. For markets that relied on air travel, urban markets, and international locations, COVID caused an indefinite dip in demand. And at the writing of this report, even as international travel bans are lifting, more people become vaccinated, and cities relax their restrictions, the future of these markets remains uncertain.
But other markets, including those within driving distance of major urban hubs, have seen huge surges in occupancy and ADR, especially at non-peak times as remote work and virtual schooling continued. However, the Omnicron variant has been increasing after discovery in late November, and it will be interesting to see how this latest change impacts the industry moving into 2022 and beyond.
View the full 2021 report for more market trends and details about how ROI was calculated.
Media Contact: Debi Stiegerwald, [email protected] (727) 244-6769
SOURCE Rented, Inc.