Benzinga and Yahoo Finance LLC can earn commissions or income for certain projects through the following links.
If you are looking for a vacation rental this summer, you may have to be more difficult than ever.
Vacation homes are no longer an essential item for American homeowners looking for a scenic escape or earning extra income from the hustle and bustle of the real estate side, according to real estate agent Redfin. In fact, the number of vacation rental owners has dropped sharply to a minimum since its inception in 2018.
Don't miss:
Redfin’s Home Mortgage Disclosure Law Analysis shows that 86,604 home buyers withdraw mortgages in 2024, a 5% drop from the previous year. One of the main reasons for falling is:
“Most people simply don’t buy vacation homes because of the surge in mortgage rates and insurance costs (especially for beachfront homes and apartments). In addition, people know that they are unlikely to earn a lot of revenue from the Airbnb listing now due to the reduced occupancy. “Although some wealthy cash buyers are still buying a second home, they are more likely to propose low balls or ask for discounts than before. ”
Trend: $60,000 Foldable Homes Manufacturer owns 3 factory buildings, builds over 600 homes and big plans to solve housing - You can become an investor today at $0.80 per share.
Data show that in Florida, demand for vacation rentals is the fastest, in which case insurance costs, homeowners’ association fees and taxes have exacerbated a massive sell-off in extreme weather. But it’s not just the sunny state of people choosing not to buy vacation rentals. According to Redfin, the number of mortgages for second-home homes has dropped in the 50 most populous U.S. cities. Not surprisingly, most vacation homes nationwide are purchased by baby boomers who have both cash and time to enjoy their properties.
Real estate agents and mortgage brokers who may have been expecting increased vacation rental sales this spring are disappointed. Tariff talks have heightened concerns about high interest rates, causing stocks to slide and buyers to pause when buying real estate, according to the Wall Street Journal.
Rick Palacios Jr., research director at John Burns Research & Consulting, said developers actively building in the sun to cover inventory shortages find themselves having unsold homes and are forced to offer offers such as interest rate buys.
"If interest rates remain within the 6% higher, that's a gentle home price," Andy Walden, head of mortgage and housing market research at the InterContinental Exchange (NYSE:ICE), told the Journal.
See: Tare Home's private credit fund has historically paid an annual dividend yield of 8.1%*,,,,, This provides access to a short-term loan pool backed by residential real estate, with a minimum of just $100.
Airbnb (NASDAQ: ABNB) is taking steps to consider cooling the market. The journal reports that home booking sites are actively planning new businesses. This includes investing $250 million in new experiences and partnerships recently announced.
Talk about new investments, when they first announced, the new investment immediately raised the company's stock price. Nevertheless, there are still questions about the money invested.
"I kind of doubt that a $200 million investment could transfer that needle to a $100 billion market capitalization company," Truist Securities analyst C. Patrick Scholes told the Wall Street Journal.
Read the next article:
Image: shutterstock
Send to MSN: 0
This article The U.S. vacation rental market crashed as the second home purchase rate was higher than the lowest ever and was originally seen on the office mission on Benzinga.com.