The HomeAway Vacation Owners Report for 2014
More rentals, more owners and increasing rates with younger buyers and renters is the story on the Texas coast.
- Shows the average age at which owners purchased their vacation home was 47 years young and vs 54 years old only two years ago.
- South Padre in among the report’s most improved locations. And younger buyers and renters are heading to the coast.
The average age at which owners began renting their vacation homes was 50 years young, and that’s six years younger than owners in 2012.
- Are people more determined to take time off and experience pleasant memories with their children?
- Are they sold on a vacation home as a solid investment?
- Have they purchased their retirement home and plan on others paying the mortgage and maintenance until they can quit the workforce?
The sales data was consistent with the National Association of Realtors’ 2014 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2013.
- It revealed vacation-home sales climbed 29.7 percent to an estimated 717,000 last year from 553,000 in 2012.
- “Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” said Lawrence Yun, NAR’s chief economist, who expected an improvement in the vacation home market.
According to HomeAway, families are feeling more confident in the economy and the financial markets and thus willing to spend cash on vacations.
- This confidence has provided a solid rental pool for vacation property buyers who have moved their purchase out of the “personal” column and into the “investment” column.
- “More families and groups are traveling each year to stay in vacation rentals across the world,” said Brian Sharples, co-founder and chief executive officer of HomeAway.
- Younger buyers are wise to invest in a property as early as possible to take advantage of the rising profile of vacation rental.