Rented.com recently published their annual 150 Best Places to Buy a Vacation Rental Property Report, which not only illuminates trends in traditional vacation rentals but also offers insights that can be leveraged for midterm rental properties. With an increasing number of travelers seeking accommodations for several weeks to a few months, the midterm rental market is becoming an attractive segment. This report’s focus on market ROI, real estate prices, local rents, and regulatory climates is also crucial for understanding the potential of midterm rentals in these locales. Over the past three years, we have seen shifts in the top vacation markets which could signal new opportunities for investors considering midterm rentals alongside traditional short-term vacation rentals. Here are the top markets from the report for the past three years, and their implications for midterm rental strategies:
2017
- Nashville, Tennessee
- Destin, Florida
- Corpus Christi, Texas
- Denver, Colorado
- Clearwater Beach, Florida
2018
- Panama City Beach, Florida
- Chicago, Illinois
- Napa, California
- Tulsa, Oklahoma
- Memphis, Tennessee
2019
- Pigeon Forge, Tennessee
- Gatlinburg, Tennessee
- Panama City Beach, Florida
- Killington, Vermont
- Palm Coast, Florida
One key trend to look out for: the reversal of urban markets. And the culprit: regulations! According to Rented.com, urban markets “now can run the risk of increasing home values and debilitating regulatory risks that nullify any short-term rental income opportunities.”
Another noteworthy trend is that certain regions that were once dominant, such as California, Colorado, and Massachusetts are on the decline. Regions on the rise include Tennessee, Florida, and Texas. Check out the full 2019 Rented Report for the top 150 2019 vacation rental markets. For more vacation rental market tips, see our Resources Page.
Related: AirDNA's Top 30 U.S. Vacation Rental Markets in 2019, How to Find a Vacation Rental
