The last few years have certainly impacted the rental property industry. From the beginning of the COVID-19 pandemic to the recent mortgage interest rate increase, things have been changing constantly. However, the real estate market seems to be stabilizing for the coming year. Here's what to expect:
Short-Term Rentals Are Coming Back
The pandemic caused the vacation rental industry to slow down quite a bit but people are back to traveling again, meaning demand is going up. Return on investment for these short-term rentals and AirBnB properties is expected to spike in 2023.
Rent Inflation Will Likely Continue
Inflation is currently at a 40-year high, according to the Federal Reserve. Owner's equivalent rent (the amount of rent equivalent to the cost of ownership) is expected to continue rising until approximately May 2023 before slowing down.
More Long-Term AirBnB Interest
There has been an increased interest in long-term AirBnB rentals which is expected to continue growing. This increased interest comes from folks traveling for work reasons as well as long stay travel for people that work fully remote positions.
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