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Starting during the Covid-19 pandemic there was a deep freeze in travel, but people still wanted to vacation and there was a boom in ‘staycations.’ This caused a spike in second homes and a demand for having your own space, causing big revenues for Airbnb and Vrbo, but those revenues are drying up and revealing possible dangers to the housing market.
Several years after the start of the Covid-19 pandemic, people’s interest are taking a hard swing away from vacation rentals — with the number of Americans going on cruises, staying at resorts, and traveling overseas making a big comeback. The question is what comes next for the vacation towns that saw their housing costs skyrocket from interest in second homes and remote work. With American’s interest in rental homes waning will there be a crash in the rental home market as owners have trouble making the finances of owning a second home work?
The Second Home Boom
Starting in the spring of 2020, as Americans were realizing that the pandemic was going to be around for a while, Americans looked to get out of cities, but they weren’t only purchasing larger primary homes in the suburbs but also second homes in vacation towns. The economics of second homes made sense as they were easy to rent out and with services like Airbnb and Vrbo…
