Corpus Christi, Texas, was the fifth-most profitable city for vacation rentals last year, according to a new ranking by property management company Rented, Inc.
The ranking compared the costs of homeownership to the potential return on investment for a rental property in more than 100 cities. Some of the factors included in the comparisons were purchase price, estimated maintenance costs, and taxes.
The other four cities included in the top five were Pensacola, Fla., Pigeon Forge, Tenn., Virginia Beach, Va., and Daytona Beach, Fla.
“Demand continues to vary considerably, with drive-to markets seeing significant growth,” Andrew McConnell, CEO of Rented, Inc., said in a statement.
Demand for vacation homes has soared since the beginning of the pandemic. According to data from Seattle-based real estate firm Redfin, demand for vacation homes was up 84% in the first quarter of 2021 when compared to last year. However, demand eroded by the second quarter.
Rented’s report suggests that the impacts of COVID-19 on air travel weighed on the demand for vacation homes. This primarily impacted properties in urban and international markets.
“Even as international travel bans are lifting, more people become vaccinated, and cities relax their restrictions, the future of these markets remains uncertain,” the report added.
On the other hand, markets that are within driving distance of major urban hubs have seen considerable growth in demand, the report said. The report added that this demand is being driven by parents with children in remote learning programs and remote workers.
“However, the omicron variant has been increasing after discovery in late November, and it will be interesting to see how this latest change impacts the industry moving into 2022 and beyond,” McConnell said.
This article was originally posted on Corpus Christi ranked 5th most profitable city for vacation rentals last year