High-End Vacation-Rental SpotsFace ChangingMarket Post-Covid

During the pandemic,many vacation homes became primary properties,as the affluent opted to leave cities And those who didn? t own,rented, often at astronomical rates

But what?s ahead? Below,a look at what?s in store for buyers,renters,and sellers in some key vacation markets

Aspen/Snowmass Village,Colorado

Because high-occupancy rental areas in core ski-access properties in Aspen and Snowmass Village,Colorado,are condo-hotels (condo buildings operated as hotels with a front desk and reservation department),or hotel-condos (operated as full-service resorts),rising rental rates played out differently than in other areas of the country

Because the units don? t qualify for traditional financing? buyers typically can get only adjustable-rate mortgages that have fixed periods of just five to seven years? a large portion were purchased with all-cash or with a very low loan-to-value ratio

?During the first two years of the pandemic,the rental rate escalated,depending on the area,around 40% to 50%,?says Will Burggraf,broker associate,Aspen Snowmass Sotheby?s International Realty ?A large reason for that surge was increased demand but also an initial large reduction in rental properties At the beginning of the period,a lot of people sold their rental properties and reduced inventory significantly The price of the properties has increased to a point that the rental return for most properties is about 15% to 3%,depending on the area and property type.?

Since 2020,the firm?s exclusive rental listings have increased around 20%,and lease dollars have doubled

?We continue to have requests for high-end rentals,? Burggraf says ?In 2020,we had one rental listing available at US$100,000 per month Now we have 10,and they are being rented?