A lot can change over the course of a couple weeks in wake of the coronavirus. Colorado is on a steady, thoughtful path to reopening our tourism economy. Though the pandemic and its various travel restrictions initially looked like bad news for the vacation rental industry, experts now say the sector is heating back up, and we have most certainly seen this to be true in Summit County. The demand for the real estate and vacation rental industry is coming back, big time.
Research shows that 60% of people are less likely to be looking to travel internationally this year and more likely to focus on closer domestic destinations that are under crowded such as national parks, beaches, and mountain getaways. Colorado is a great place to have these outdoor luxuries, so we have ultimately seen a jump in the number of out-of-town visitors and people who predominately live in close cities like Denver who want to come up and enjoy the outdoor space that Summit County has to offer.
Currently, Colorado is in Level 2: Safer at Home and in the Vast, Great Outdoors. While we are all still safer at home, we are also able to practice greater social distancing in our vast outdoors than in confined indoor spaces. Much of Colorado is now open with some restrictions to prevent the spread of COVID-19 and protect those at highest risk for the illness. When it comes to real estate in Colorado during these times, we have seen new demands for what people want in their next home, considering that social distancing is the new norm and safety is mostly everyone’s top priority.
Following the order to stay at home for the past few months, people are itching to get out of their houses, but they don’t necessarily want to get on an airplane or chance leaving the country. Investing in a getaway home to call their own is what is in higher demand. As more vacationers get summer fever, it seems they’re seeking out less populated areas where it’s easier to social distance. Since Memorial Day, the number of people doing searches for rentals and home buying has reached their highest level since March and are even outpacing this time last year.
If you draw a 250-mile radius around any major metro, each place where you see water or mountains, the homes around it are what’s starting to get booked up. Currently, the most successful real estate and property rental markets are located between two hours from major cities or within driving distance. In the world of real estate, what we’re seeing is people wanting to buy second homes more now than ever because they want a place to get away and they want more privacy and overall space.
With the relative instability of the travel market, some people are hunting for properties that they can afford even without generating rental income. Investing in real estate is very much in demand but not necessarily with the thought of ‘can I rent this out and can I make money?’ It’s more about having a place to go and having a place to gather with additional space. Many investors are looking for standalone and single-family homes right now, and steering clear of ‘shared space’ property options. Anywhere that has shared amenities shows less demand on the purchase and booking side. In the Colorado real estate market, we are also seeing a preference from buyers to inquire about properties with three or more bedrooms.
If you are considering visiting Summit County for a getaway, please note that Governor Polis has asked that as more of our state opens, all visitors respect the wishes, public health, and capacity of our local areas, whether in-state residents returning to their favorite getaways or out-of-state travelers discovering Colorado for the first time. As Colorado continues to take positive steps toward reactivating our economy, the health and safety of both visitors and residents remain our highest priority. As you visit our beautiful state, it is encouraged that you embrace our new interpretation of responsible tourism — showing care not only for our destinations but for our visitors and the people who call Colorado home. For more information on the Summit County health order, please click here.
Is it time for you to own a mountain paradise home and find more space for you and your family in the mountains? Contact Jan today on how to navigate this new real estate reality in our current market.