Why Airbnb is a Positive Indicator for the Rental Industry Post COVID-19
This past November, Airbnb entered IPO with $30 million according to Forbes. An IPO or Initial Public Offering refers to when a private company offers its shares to the public. While Airbnb has experienced losses since its development in 2008, Wall Street is confident that this company is just one of many that will experience revenue growth once the pandemic is over. Here is what Airbnb’s new IPO status could mean for the rental industry.
A Surge in Vacation Opportunities and Individual Living
Once COVID-19 dwindles down, more and more people will be seeking vacation opportunities. Airbnb will likely experience an influx of vacation renters, causing its value to skyrocket. This is great news for those looking to invest in companies like Airbnb, as more people will be traveling once stay-at-home orders lift. For the rental industry, more people could be looking to invest in an additional rental property after the pandemic ends. It’s also estimated that 39% of millennials have moved back home due to the pandemic, which means more temporary renting situations. As conditions and finances improve, those with a coliving situation will be looking into other options, such as renting on their own. Though many may still opt for communal living after having been quarantined for so long. Regardless, property management groups will see a significant improvement as people become more able to pay their rent.
More Income for Rental Property Owners
The housing market is experiencing an abundance of buyers as rates are the lowest they’ve been in a long time. The same could be true for rental properties, as less and less people have been able to pay rent. Due to expanded rent relief and benefits programs for furloughed employees, tenant turnover rates have slowed. The pandemic has led to more renter’s relief and cuts in rental costs. As the economy improves, renters will be able to charge more and more for rent. The value of property management companies will go up again. Now is the right time to begin investing in rental property IPO’s like Airbnb! Essentially, rental property owners will be gaining back what they lost in 2020.
If you’re looking for autonomy, affordability, and more dependable rental options, contact Voyajoy today! This pandemic has shown us the value of community as we’ve been forced to live apart. As states open, vacation rentals will gain a huge boost as people begin to travel again. Those who own rental properties will see more profit as renters are able to pay rent again. Cuts haven’t been good to your local rental companies, let’s help by investing into them again once COVID-19 ends! We promise to make your dream destination worth it.
* Photo Courtesy of Canva