The HomeAway Vacation Owners Report for 2014
More rentals, more owners and increasing rates with younger buyers and renters is the story on the Texas coast.
Shows the average age at which owners purchased their vacation home was 47 years young and vs 54 years old only two years ago.
South Padre in among the report’s most improved locations. And younger buyers and renters are heading to the coast.
The average age at which owners began renting their vacation homes was 50 years young, and that’s six years younger than owners in 2012.
- Are people more determined to take time off and experience pleasant memories with their children?
- Are they sold on a vacation home as a solid investment?
- Have they purchased their retirement home and plan on others paying the mortgage and maintenance until they can quit the workforce?
The sales data was consistent with the National Association of Realtors’ 2014 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2013.
- It revealed vacation-home sales climbed 29.7 percent to an estimated 717,000 last year from 553,000 in 2012.
- “Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” said Lawrence Yun, NAR’s chief economist, who expected an improvement in the vacation home market.
According to HomeAway, families are feeling more confident in the economy and the financial markets and thus willing to spend cash on vacations.
- This confidence has provided a solid rental pool for vacation property buyers who have moved their purchase out of the “personal” column and into the “investment” column.
- “More families and groups are traveling each year to stay in vacation rentals across the world,” said Brian Sharples, co-founder and chief executive officer of HomeAway.
- Younger buyers are wise to invest in a property as early as possible to take advantage of the rising profile of vacation rental.
The most surprising statistic to emerge from the HomeAway report was the amount of gross rental income.
HomeAway vacation rental owners charge a weekly rental rate of $1,520 ($217/night) and take in $27,360 a year, up from $17,500 four years ago.
Second-home owners overestimate the time they can realistically use their property. Academic calendars, family reunions, can’t-miss business trips and basketball tournaments often get in the way of the only time you can everyone together at the beach or lake.
- These same owners, however, often underestimate how easy it can be to rent out their homes.
- Friends from work, church and park leagues will be interested in spending their leisure time in their retreat.
- That’s because they know and trust the owners’ taste and choices – and will probably enjoy the same environment and experiences that owners find pleasurable.
- Plus, both the recent HomeAway and NAR studies show that there’s large group of travelers who would like to take their family on vacation to a similar type of getaway.
- A survey of almost 300 travel counselors found 45% reported better sales so far while 67% said the cost of travel is rising.
- Travel counselors said price rises in flight tickets and hotel stays was the main reason, yet 35% of agents also said customers are choosing to spend more on additional services such as excursions.
- Travelers are also putting a higher value on added perks and upgrades rather than making decisions purely based on price.
- The survey found that the average trip duration is 10 days.
- All-inclusive beach vacations remain most popular with 43% heading off for sun, sea and sand, while 34% of customers are choosing destinations with cultural attractions.
- HomeAway offers renter’s insurance option (bizjournals.com)