2022 Summer Vacation
June 06, 2022
The time is finally here. It is now June, and we are officially into Summer, with the vacations and traditions that many put on hold the past two years back on the calendar. Weddings for friends and family that were delayed due to COVID seem to be scheduled back-to-back now, and I am already starting to hear the question: “where are you going for the 4th of July weekend?”
This past weekend I did some traveling of my own and attended a wedding on the Georgia Coast. What a great time! It was all excitement and bliss seeing friends and family members, both young and old, celebrating together again with smiles on their faces. The excitement carried through into Sunday until I checked back into reality back home and realized the shocking tally of expenses I had racked up on my credit card.
Between filling up the gas tank, going out to eat, and paying for accommodations, the cost of taking a trip has really gone up! Of those I spoke with this past weekend who traveled by plane, it seemed nearly a quarter faced cancellation or delay, causing them to have to adjust their plans just to make it on time. This only added further to the cost of airfare and hotel, which according to reports produced by the travel app Hopper, are already 40% more than pre-pandemic levels in 2019.
Short-term home rentals did not offer a great alternative to hotels. AirDNA, a company that tracks rentals on VRBO and Airbnb, reported that through April 2022, rentals were 33% more expensive than in 2019. Many travelers shifted from renting hotel rooms to short-term home rentals during COVID for the additional space and privacy, and that trend continues today. The great resignation added to these increasing prices. Many retirees traded the city for the coast, contributing to the dwindling supply of homes in these popular vacation destinations. Finally, increasing interest rates have left recent short-term rental investors little to no choice but to charge top dollar in order to cover the mortgage on their investments.
The one silver lining has been for those who wanted to purchase a vacation home during the past two years but delayed their purchase due to the sizzling hot market. In February, the real estate website Redfin published an article noting the nearly 90% increase in demand for a second-home vs pre-pandemic levels in early 2020. One short month later, Redfin published a similar report highlighting the precipitous drop in demand to its lowest level in nearly two years. For cash buyers and those with great credit, patience may soon pay off!
Despite higher prices all around, I am happy to see that long-overdue vacations and quality time with family are becoming a summer staple again. I hope you get the chance to take a trip, or just create some new memories with your friends and family in the coming months.
Corey Erdoes
