Where is the Vacation Rental Industry left during COVID-19? When can we expect a bounce back? Is there anything that can be done in the meantime? #stayathome
As a Real Estate Broker, I feel this conversation requires a look at the Real Estate Market, The economy re-opening, the travel Industry & then the Vacation Rental Market specifically.
REAL ESTATE: March and April home sales have dropped, Mortgage rates drop to another record low and pre-approval qualifications have become more stringent. Many feel this is another recession, right? Not so fast. Here’s a quick historty lesson as to what happened leading up to the Great Recession from Quantitative Economics: Steven Thomas. “In March of 2007, the subprime lending industry collapsed. Demand instantly dropped to levels that were much like to today. Yet, there were over four times the number of homes on the market compared to today. With very low demand and a huge supply of homes, the housing market ground to a halt and home values plunged. The presence of so many risky subprime loans, pick a payment loans, and zero down payment loans in the system, the collapse in the credit and housing market was followed by a tsunami of distressed properties. The overly abundant supply and unstable credit foundation of the housing stock led to the tumble in values.” Today, we have both a “demand problem” – buyers activity has slowed down tremendously and “supply problem” – not enough homes listed for sale. Both are moving housing towards a Balanced Market, but how long can this last? Only time will tell.
ECONOMY: While there have many comments on when business’ will re-open, dates continue to get pushed back. Right now, it is important to slow down the virus and let healing occur.
TRAVEL INDUSTRY: The head of the American Hotel & Lodging Association said the industry impact is “more severe than anything we’ve seen before, including Sept. 11 and the Great Recession of 2008 combined,” lodging analysts have also said that “leisure travel snaps back quickly after a downturn…pent up demand can lead to a sudden spike…” and “once the virus is under control and business normalizes, travel could rebound fast.” The yearn to travel is one with health benefits, stress reliever, growth; we will travel again when we are able to. \
VACATION RENTAL MARKET: The reality that the travel industry has been put on halt is a hard one to process, but the Vacation rental Industry has been a strong community and will exist again. Many counties have ordered Vacation Rentals to shut down.
NEXT: Many of the counties that our properties are located in have ordered a shut down, while Long Beach as of now continues to remain open (while travelers are little to non existent.)
There are many healthcare staff and first responders that are on the front lines during this time. Venture Yours is looking to partner with Airbnb and offer those hero’s a deeply discounted rate or free of charge. This would allow them to be close to their patients — and safely distanced from their own families. If and when we are able to provide such services, homeowners will be sent information via email. If you are one of the many homeowners who have inquired about our services during COVID-19, we will continue to send emails about our unique services and will contact you when the time allows for onboarding your property.