2021 Top Places to buy a Vacation Rental
December 21, 2021

Rented Report 2021 Best Markets to Purchase Vacation Rentals

ATLANTA, GA–(Ereleases)–Rented, Inc., today announced its sixth annual report on the 100 Best Places to Buy a Vacation Rental Property in 2021, providing insights into the most profitable cities for rental property investment and how this profitability varies each year.

“Travel for the last nearly two years has been disrupted. Demand continues to vary considerably, with drive-to markets seeing significant growth. Skipping the flight and creating a working vacation is a trend we began to see in 2020 that continues,” said Andrew McConnell, CEO of Rented, Inc. “The Rented Report helps both rental property buyers and owners, as well as professional vacation rental property managers, understand the dynamics of the vacation rental market and narrow their search for the most profitable cities.”

The “Best Places to Buy” in 2021 includes a few repeats and a few surprises when compared to previous years’ reports. Among the top 25 cities, eight were listed on both prior lists, and six were listed on all prior Rented.com’s annual reports. The top five cities in 2021 included mostly southern or beach destinations.

The top five real estate markets with the highest return on investment (ROI) for rental properties in 2021 include:

  1. Pensacola, Florida
  2. Pigeon Forge, TN
  3. Virginia Beach, VA
  4. Corpus Christi, TX
  5. Daytona Beach, FL

The ROI of owning a rental property is determined by comparing costs of homeownership to short-term rental potential in various U.S. rental markets. Factors influencing these figures include purchase price, insurance, taxes, maintenance costs, the popularity of the destination, local rental rates, and more.

COVID Impacts Trends in Vacation Rentals

The overall picture of 2021 is mixed. For markets that relied on air travel, urban markets, and international locations, COVID caused an indefinite dip in demand. And at the writing of this report, even as international travel bans are lifting, more people become vaccinated, and cities relax their restrictions, the future of these markets remains uncertain. 

But other markets, including those within driving distance of major urban hubs, have seen huge surges in occupancy and ADR, especially at non-peak times as remote work and virtual schooling continued. However, the Omnicron variant has been increasing after discovery in late November, and it will be interesting to see how this latest change impacts the industry moving into 2022 and beyond. 

View the full 2021 report for more market trends and details about how ROI was calculated.

 

Related Blogs

Vacation Rental Demand drops

October 5, 2022

How To Prepare For A Softening In Vacation Rental Demand In Q4, 2022

The vacation rental industry has been doing really well in recent years. Companies like AirBnB have posted some of their

Read More
Vacation Rental Marketing Strategy

September 14, 2022

How to Use Social Media in Your Vacation Rental Marketing Strategy

We’ll admit: that sometimes, the vacation rental industry struggles to keep up with the times. And that’s true with using

Read More
The Vacation Rental Demand: Year Over Year Comparison from 2019 to 2022

August 11, 2022

The Vacation Rental Demand: Year Over Year Comparison from 2019 to 2022

The last few years have been a blur for many of us, and when we look at where the vacation

Read More