U.S. Vacation Rental Market Collapses As Second Home Purchases Drop To The Lowest Level Ever Amid High Interest Rates And Return To Office Mandates
From Yahoo Finance: 2025-05-20 15:30:00
The demand for vacation rentals is plummeting, with a drop in second home purchases to the lowest level ever. Factors include high mortgage rates, insurance costs, and decreased revenue from Airbnb. Vacation homes are most commonly bought by baby boomers. Real estate sales have also slowed due to high interest rates and tariff concerns.
Airbnb is adapting to the cooling market by investing $250 million in new ventures, including experiences and partnerships. The stock price initially rose with the announcement, but questions remain about the impact on the company’s market cap. The company is aggressively planning new initiatives to counter the declining market for vacation rentals.