Detroit, Michigan –News Direct– Benzinga
By Faith Ashmore, Benzinga
The COVID pandemic has arguably changed the real estate landscape in many ways, and the effects of the post-pandemic boom still persist.
The vacation real estate market has experienced increased investment and growth in the post-COVID era. The pandemic led to a surge in interest and demand for vacation properties and more people now prioritize safe and private getaways. According to industry statistics, the vacation rental industry’s market value increased by 22.76% from 2020 to 2021.
With the low-interest rate environment during COVID-19, many Americans took advantage of the favorable conditions and invested in vacation properties. Sales of vacation homes surged, outpacing the growth in total existing home sales in 2020. The National Association of Realtors reported a 16.4% rise in vacation home sales in 2020, compared to a 5.6% growth in total existing home sales. At the beginning of 2021, about 60% of properties were sold above their advertised prices as a result of the “race for space” among homebuyers.
However, many claim that is not just the vacation real estate market that is experiencing growth. Despite some ups and downs in the market, more and more people are looking to rent which makes investing in the rental real estate market attractive. Approximately 41% of Americans are choosing to rent, and rental properties are experiencing an increase in demand based on migration patterns. The apartment rental market in the U.S. was worth $258.4 billion in 2022 and has displayed consistent growth over the past five years.
The U.S. alone makes up over 10% of the world’s residential value at an estimated market size of $2.53 trillion in 2023 and is also the world’s largest commercial property market. But even though the market is attractive in many ways,