The economy may be volatile, but an increasing number of people going away on vacations has boosted the vacation real estate industry.
Owners of vacation rentals have reported a year-over-year growth with an increase in occupancy levels and average weekly rental rates, the latest HomeAway Vacation Rental Marketplace Report showed.
Nearly three quarters of owners reported occupancy rates of 76 percent this summer, which is up from 68 percent last summer. On the rental front, the average weekly rental rates ranged between $1,493, the report showed.
Meanwhile, Smith Travel Research, a hotel industry research firm reported that occupancy levels in U.S. hotels increased between June and August. Compared to last year’s 68 percent, the occupancy rate was 70 percent this year, with an average room rate of $106.97 per night.
"We're pleased with the feedback we're getting from our vacation rental owners. Even owners with properties in destinations where summer is typically a shoulder season or an off-season have reported a good season in terms of occupancy," Brian Sharples, chief executive officer of HomeAway, said in a statement.
Meanwhile, vacation rental owners earn an average of $26,0002 per year in rental income if they market and manage their property for 8.6 hours per week.
"It's clear that owners who invest just a minimal amount of time marketing their vacation rental can generate valuable income," Sharples said.
The income generated from vacation rental properties, which many bought as a second home for personal use, goes into paying the mortgage on the property, as savings for the future and for upgrading the rental property, the report showed.
Top 10 markets where traveler demand is on the rise:
Balboa Peninsula, Calif. (up 222%)
Reunion, Fla. (up 137%)
Aspen, Colo. (up 127%)
San Diego (up 124%)
Folly Field, S.C. (up 116%)
Honolulu (up 115%)
Kissimmee, Fla. (up 114%)
New Orleans (up 114%)
Vail, Colo. (up 111%)
Gulf Shores, Ala. (up 108%)
