2024 was another great year but the Cape Cod vacation rental market is settling down after the craziness of COVID. Let's dig in.
2024 bookings were very strong...but
...demand slowed in 2024. The majority of our homes filled their available summer dates, but for the first time in years, we had holes here and there. Clearly renters have backed off of their Cape Cod vacation frenzy and we expect this trend to continue with similar numbers in 2025. Off season interest has continued at higher than pre-pandemic levels and we'll keep our eyes on this.
Early bookings continue
According to one of our advertising partners, weneedavacation.com, most summer weeks are already half booked. This is a big change from days gone-by when many renters would book homes starting in April. We see this in our own stable as well, with many renters booking at the end of the previous season to ensure their spot for the following summer.
Vacation rentals with desirable amenities and in prime locations continue to rent very well at higher prices, but even our more modest homes, priced correctly, are booking just as well, if not better than homes with more luxury offerings. COVID changed tenant expectations and drove a lot of changes in the rental market that many renters may now be regretting. Many once affordable and simple rental homes now offer so many features or amenities that they have priced their original clientele out. As a result...
Prices begin to stabilize
According to one of our advertising partners, weneedavacation.com, rental rates across the Cape are only up about 2% compared to 2024 and the Sandwich to Dennis market hardly saw prices change at all. Also, approximately a third of homeowners have lowered their rates since last season. This is a breath of fresh air for renters after the craziness of COVID and a sign that the rental market is calming down. Lower prices at their vacation homes allows for more opportunities to eat out for fried clams, see a play at the Cape Play House and help support the local economy in myriad ways. This is good for vacationers, local business owners, and frankly, rental owners, since vacationer money spent on the Cape helps keep property taxes low.