The home market has seen huge fluctuations in recent years that continue to impact homeowners such as yourself. Owning a home is not a cheap endeavor, but using your property for a short-term rental helps you make a return on your investment. 2025 will continue to see changes in home market trends, especially the rental market. These changes can impact how you manage your short-term rental in Arizona. Take a look at recent market trends that you will want to keep an eye out for in 2025:
Increase in Interest of Rental Properties
Owning a short-term vacation rental is a great way to get a healthy return on your investment. Interest rates around the country have been at an all-time high since the pandemic but they have been slowly dropping back down. Interest rates continue to slowly decrease into 2025, providing short-term rental owners with a newfound interest in expanding their portfolio. If you are considering adding another property into your portfolio, you are not alone. Many home owners see the rate of return on their investment and are eager to continue seeing that revenue. Explore the homes available to purchase with the lower interest rates and see how you can continue to earn a steady revenue stream with short-term renters.
An Increase in Demand
While the news highlights the rise of inflation come key detail is often ignored: the rise in stable and real incomes. With the economy taking a huge hit with the pandemic it is easy to focus on the negative aspect of the economy. However, the economy has finally taken a turn and its stabilization has left a rise in real incomes. This additional income for families is what you want for future short-term renters. With more incomes families will be more able to travel and stay in more luxury properties such as yours instead of hotel rooms. The demand for short-term rentals is expected to increase around 4.9% during 2025 providing your property with more renters.
More Workcations
Many businesses continue to support their employees by allowing them to work from home. This is a great way to retain their employee base and save on the cost of office buildings. Those who work from home continue to report they are much happier with their jobs and want to stay with the company. Working from home also allows these employees to enjoy a “workcation” or a vacation with the family while they continue to work from home. This allows families to travel more while not having to spend their paid time off days in a single week. With more individuals enjoying work from home you will see a continued increase in short-term rental needs. Employees are not able to comfortably work from a hotel room so they look to full size vacation rentals.
Rising Costs of Ownership
The overall housing market trend is also continuing to see a rise in the total cost of ownership. As you are well aware all of our vacation rentals such as yours is a privately owned home. Homeowners provide their property to add to our listing of homes to use as short-term rentals for clients. Some home owners have fully paid off these homes while others continue to pay for a mortgage. Regardless of your home ownership status 2025 will see a common trend that the cost to own a home will continue to rise. Many vacation rentals are in an HOA community that sees monthly fees that typically rise year to year. Other variable costs continue to rise with inflation that can impact the cost of owning your home. Keep an eye out for these rising costs this year so you remain knowledge about the total ownership costs.
Renters Looking for Unique Stays
The short-term rental market has hit a craze with countless travelers wanting to avoid a hotel room and stay somewhere unique. What can count as unique now has changed with renters looking for properties that stand out among all the others. If you do not individualize your home, you can miss out on a potential sector of renters. There are a variety of ways to help your home stand out in 2025. Add in special amenities such as pool or hot tub. Get into something creative like building a tree house in the backyard. Anything that sets your property apart from the others will help increase its booking window in 2025.
Keep an Eye Out on These Rental Market Trends
Your short-term rental in Arizona is sure to see a change in bookings with these expected market trends for 2025. Let our team continue to support your property and having it reach a new return on investment for you.
