The housing market shortage is being exacerbated is the new property trend, according to experts. The popularity has created a new trend across the Valley. This is where people are buying properties and have turned them into rentals. One real estate expert says that, while the trends favor investors. The purchases will continue tightening the already existing housing shortage.
Housing Market: Vacation Destination
In fact, Phoenix’s popularity as a vacation destination has to change the market for investment properties. It is based on a current Wall Street Journal Report. Moreover, Valley real estate agents are seeing an uptick in people buying luxury homes. They want to list on vacation rental sites such as Airbnb. In fact, some of the rents are going for more than a thousand dollars a night.
Not Owning Enough Property
Director of real estate programs at ASU’s W.P. Carey School of Business, Mark Stapp, said that people were not able to get into the lodging or rental business. That is if they, in fact, just owned one or two houses.
Housing Market: New Tools and Technology
In fact, new tools and technology have opened up the game to everyday people. In fact, the simplicity of booking an extended-stay vacation in a house, not a hotel. In fact, your phone has, moreover, changed the lodging sector as a result.
Resort Destination Community
“In fact, the entire industry is beginning to evolve around this,” Stapp said. “[Phoenix is] a resort destination community anyway. Moreover, we have amenities that will support the desire for people to be here. Moreover, you have now more options.”
In fact, at first, people were renting out their homes using apps like Airbnb and VRBO. Then, the investors started buying homes and putting them on the apps. Now, the big hospitality companies are getting in on the game. Thus offering services to those who own properties for short-term rental.
Seeing the benefits for investors, Stapp said, he is seeing the new trend. That is drawing a lot of attention to the present housing storage in Phoenix.
“Moreover, I don’t think it is, in fact, creating a critical situation. However, I think it does aggravate the present inventory shortage,” he said. Therefore, I think it is a good business model when you. Moreover, in fact, have the right property.” In essence, only time is going to tell. In essence, just how much this new industry, where the hospitality world does cross over into the real estate market, does, in fact, take off.