Millennials are leading the STR boom 💥

Hello, real estate enthusiasts! 👋

Here's your daily round-up of the most exciting news in the vacation rental investing world:

• The vacation rental market is booming, with millennials leading the charge 📈

• Bend, Oregon is a hotspot for vacation properties, attracting a diverse range of investors and vacationers 🏞️

• Spotting emerging real estate markets can lead to lucrative investment opportunities 🎯

• 🔥 Deal of the Day! 🔥: 3 bd | 2 ba | Royalton, VT

Millennials Fuel Vacation Rental Market Boom 🚀

As real estate investors, it's crucial to keep an eye on emerging trends and opportunities. One such opportunity lies in the vacation rental market. Let's dive into some key insights.

The vacation rental market is a booming sector, with a projected compound annual growth rate (CAGR) of 5.3% from 2022 to 2030. This growth is fueled by a shift in consumer behavior, with millennials leading the charge, spending approximately $180 billion on travel annually.

The rise of remote work has also influenced the vacation rental market. The average vacation duration has increased by 68%, with stays ranging from 21 to 30 days becoming more common. This trend is likely due to the flexibility remote work offers, allowing people to work from anywhere, including their vacation rentals.

In the United States, 31.3% of vacation rentals are privately owned, with 600,000 Americans leveraging online platforms to rent out their properties. In 2022 alone, approximately 138 million nights were booked for rental listings in the U.S.

From a global perspective, the vacation rental market is expected to generate $96.85 billion in revenue by 2023, with the majority of this revenue coming from the U.S. In 2022, around 700 million travelers worldwide used vacation rentals, including over 60 million Americans.

The method of booking has also shifted, with 76% of vacation rentals in the U.S. being booked online in 2022. This figure is expected to rise to 80% by 2026.

The type of vacation rental also plays a role in the market. For instance, tiny houses have seen a 27% annual growth rate in the U.S., followed by nature lodges and buses, both at 25%.

The vacation rental market is not just a lucrative opportunity for property owners but also for property managers. Around 43% of rental hosts manage their properties themselves, while 25% of properties are managed by professionals.

In terms of demographics, the majority of renters fall within the 25 to 34 age group. However, the market is diverse, with renters ranging from 18 to 64 years old.

The vacation rental market is a dynamic and evolving sector, offering numerous opportunities for savvy real estate investors. By staying informed about market trends and consumer behaviors, investors can identify profitable opportunities and make strategic decisions.

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Bend, Oregon: A Hidden Gem for Vacation Property Investments 🏡

Bend, located in Central Oregon, is a hotspot for vacation properties, attracting a diverse range of investors and vacationers. The region offers a variety of properties, from family retreats to investment opportunities, including Short Term Rentals (STRs). STRs are properties rented for less than 30 consecutive days per tenant.

However, it's crucial to understand that not all areas in Central Oregon permit STRs. To determine if STRs are allowed in a specific neighborhood, investors should review the Covenants, Conditions, and Restrictions (CC&Rs) of the area. A realtor can assist in this research.

If STRs are permitted, a land use permit is required. The city regulates the number of homes within a certain distance in the city limits. STR operators are also required to collect a room tax of 10.4% from tenants at the time of rent payment and submit a monthly room tax report. This process can be complex, leading many homeowners to employ vacation rental companies to manage these responsibilities.

Interestingly, the County currently does not permit STRs, with certain areas like Mount Bachelor Village being exceptions. These areas offer a variety of rental options, with amenities varying by subdivision and location.

Bend's popularity among outdoor enthusiasts makes properties on the west side of town highly sought after. The area offers easy access to a range of outdoor activities, including golfing, biking, hiking, rafting, skiing/snowboarding, and fishing. It's also conveniently close to downtown Bend, the Old Mill District, breweries, wineries, and concert venues. Despite this, Bend's compact size ensures a wide range of options to suit every budget.

In conclusion, STRs in Bend offer a fantastic opportunity to enjoy the region's offerings while offsetting homeownership expenses. It's a win-win situation for both investors and vacationers.

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Unlocking Lucrative Opportunities in Emerging Real Estate Markets 🔍

Navigating the real estate landscape requires a keen eye for potential growth areas. Spotting emerging markets before they hit the mainstream can lead to lucrative investment opportunities. Here are some key indicators to help you identify these markets.

Rising rental prices are a strong sign of a growing real estate market. If rentals are filling quickly and prices are consistently increasing, it's a good sign that the area is becoming more desirable.

Population growth, particularly among young professionals and families, is another positive indicator. These demographics are often looking for homes and rentals, creating a potential investment opportunity. Cities that frequently appear on "best places to live" lists are worth considering.

Company announcements can also signal a growing market. If a major company announces a new office or factory in a particular location, it can stimulate the local economy and increase demand for housing.

Infrastructure development, such as new highways, public transportation systems, and airport hubs, can make an area more attractive to potential residents. Similarly, changes in zoning laws, tax incentives, and other policies can spark economic growth.

Urban revitalization efforts, such as major redevelopments or incentives for businesses to open in certain areas, can indicate an up-and-coming market. Similarly, accolades for local school districts can make an area more attractive to families.

Low foreclosure rates can indicate a healthy market with a stable economy and solid job market. On the other hand, high foreclosure rates can be a red flag.

Finally, insights from industry leaders and experienced realtors can provide valuable on-the-ground perspectives on emerging markets. Regular conversations with these professionals can help you stay informed about flourishing communities.

By keeping these indicators in mind, you can identify profitable investment opportunities and avoid areas that are stagnant or in decline.

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🔥 Deal of the Day! 🔥

Address: 1167 Oxbow Road, Royalton, VT 05068

With its breathtaking views of the White River Valley, this 38-acre property in South Royalton, VT, featuring a beautifully updated main residence and a charming guest house, offers a unique vacation rental opportunity, providing guests with privacy, natural beauty, and easy access to local amenities and outdoor activities.

Airdna data:

Estimated monthly payment: $3,200/month

Estimated monthly revenue: $5,900/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

That's all for today, folks! Remember, the key to successful investing is staying informed. So, keep reading, keep learning, and keep investing. 🗝️