A Vacation Home Rental Market Slowdown?

Vacation home
The vacation home rental market appears to be slowing down some.

The vacation home rental market has been booming in recent years, as more and more people have turned to short-term rentals as an alternative to hotels. However, there are signs that the market may be losing some of its strength.

One factor that is contributing to the slowdown is the rising cost of living. As the cost of housing has gone up, so too has the cost of renting out a vacation home. This has made it more difficult for homeowners to turn a profit on their rentals.

Another factor that is contributing to the slowdown is the increasing availability of alternative accommodations. In addition to hotels, there are now a number of other options available to travelers, such as bed and breakfasts, vacation rentals, and even house sitting. This has made it more difficult for vacation home rentals to compete.

Finally, the rise of companies such as Airbnb has also had an impact on the vacation home rental market. Airbnb has made it easier for people to rent out their homes to strangers, which has led to an increase in the supply of vacation rentals. This has put a downward pressure on prices.

As a result of these factors, the vacation home rental market is likely to continue to slow down in the coming years. This could lead to lower prices for travelers, but it could also make it more difficult for homeowners to turn a profit on their rentals.

Tips for vacation home owners

  • Do your research. Before you list your home for rent, make sure you understand the market in your area. What are the average rental rates? What are the most popular times of year to rent?
  • Set competitive rates. You want to make sure you are charging enough to cover your costs, but you don’t want to price yourself out of the market.
  • Market your home effectively. Make sure your listing is visible on the major vacation rental websites. You may also want to consider hiring a professional property manager to help you market your home.
  • Provide excellent customer service. This will help you attract repeat renters and positive reviews.


As with the overall real estate market, the South Florida vacation home market continues to remain stronger than what is being seeing throughout other parts of the country. A large reason for this is the continued demand for South Florida housing combined with the widely adopted virtual workspace by many employers. Of course, no market is immune from the current inflationary and overall economic pressures being seen. Although we have seen a slight slowdown in the vacation home market in South Florida, it continues to produce a great return on investment. It is possible that as the vacation home rental market slows down, we could see more of these homes being listed for sale instead. If so, this could provide some much needed relief for the housing inventory.

Are you considering purchasing a vacation home in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your mobile device and have the power of the South Florida MLS in the palm of your hand.

By natasha moore

REALTOR® with Live South Florida Realty, Inc.