Minnesota Vacation Rental Management & Short Term Property Manager Tips & Trends
Revenue Expectations for Your Short Term Rental Property In 2023
Short-term vacation rental trends in Minnesota are rapidly rising, thanks to an increasing number of people who are choosing to rent out their homes while they’re away. As more people choose to rent out their primary residence while they’re on vacation, they are contributing to a growing trend of short-term vacation rentals in Minnesota. Short-term vacation rental growth is also being driven by the availability of affordable housing options and increased interest from home buyers. The rise in short-term vacation rentals has led to an increase in short-term vacation rental growth rates in Minnesota. In fact, short-term vacation rental growth rates have risen by 25% from 2016 to 2017 alone. This increase is likely due to the availability of affordable housing options, as well as increased demand from home buyers.
Short-term vacation rental is a new and emerging market segment in the United States. According to a 2018 study by the U.S. Travel Association, there are an estimated 7 million short-term rental units across the country, with Minnesota being one of the top states for short-term rentals due to its high population density and tourism industry. The number of short-term vacation rentals has steadily increased in Minnesota over the past decade, with the rate of growth varying depending on location. For instance, the city of Minneapolis saw a 50 percent increase from 2016 to 2017. On the other hand, rural areas such as Grand Rapids had a 15 percent decrease in short-term rentals during this same period. As a whole, the Minnesota short-term vacation rental market is expected to grow at an annual rate of 5.8 percent from 2018 to 2022, reaching approximately $1.2 billion by that time. This projected growth can be attributed to several factors, including increasing adoption rates of short-term vacation rentals among millennials and continued expansion of the technology infrastructure in Minnesota.
Short-term vacation rental trends and growth rate in Minnesota is expected to grow at a CAGR of 0.6%. The reasons for this trend are increasing population, growing demand for short-term accommodations, and recent tax benefits. There is a large demand for short-term vacation rentals in Minnesota because of the increasing population and rising demand for short-term accommodations. As people continue to move to the state, they need more places to stay. Short-term vacation rentals provide an affordable alternative, saving consumers money compared to luxury hotels or extended stay hotels. In addition, short-term vacation rentals are a popular way for property owners to earn extra money from their homes. These properties are typically available on sites like Airbnb, HomeAway, or VRBO. Short-term vacation rentals also make sense for travelers who only need a place for a few nights or want to experience a certain part of the state. For example, someone traveling through the area could use a short-term rental as an alternative to staying in a hotel because they prefer the location or amenities offered by the home instead. In addition, those who travel with friends or family can share rental costs and save money on lodging expenses.