Recessions can slow down an entire country. What started as a housing industry slowdown is now a global economic crisis. The extent of the crisis is reflected in stock prices of leading financials that were thriving only months ago. WAMU is bankrupt, Wachovia got taken over, Merrill Lynch got picked up Bank of America, and AIG got bailed out by the Government. All these companies have thousands of employees and used to fund millions of small businesses, which are all now in trouble.
1. People need vacations at all times. Regardless of whether itBs recession or not. These vacations are more lavish when people have more money. During a recession, people settle for near-by places where they can go chill with family for a few days. There you go. Instead of couples taking trips in other states or cities, Florida locals are choosing to spend time with their families in near-by vacation homes that are 2-3 hours from home. Locals are somewhat filling up for long-distance visitors.
2. Airfare has seen steep increases recently due to the high jet fuel prices. Gas prices, on the other hand, have dropped in the recent weeks. This is more reason for locals to drive to a near-by beach and relax at a rental property that are cheaper than ever.
3. Another reason for vacation rentals working well during recession is that rental owners are not that heavily affected by the housing price declines. Rental properties make their money from rental fees. The actual price of the property is less important. Due to lower property prices though, more people are getting into the vacation rental business. ItBs starting to become a better idea to CinvestD in a vacation rental than a house. The fees from rentals often compensates for risks associated with the volatile housing market. This is resulting in the growth of the vacation rental market.
WeBve tried to stay on top of the current market situation. We are seeing a healthy increase in the number of listings on the site as well. We expect 2009 to continue to be a growth year for vacation rentals, though the growth rate may not be as high as 2007 and 2008.
