Are there too many vacation rentals?

There are becoming more and more vacation rentals, though the demand for vacation rentals seems to continue to be high. The rent does fluctuate with the market and seasonal attraction to the area.

Hi Celine - I agree with Chris Yochum; there are more and more vacation rentals. It also depends on where you are looking. In Amelia Island, Florida, many properties are zoned for short-term / vacation rentals. Depending on the time of year, holiday or special events depicts the rental rate. I have recently noticed that many rentals here are booked almost a year out.

While there are a lot of vacation rentals, different municipalities are starting to change zoning and not allow short term rentals. (Short term is often considred less than 30 days). That helps the rentals in municipalities who do still allow short term get filled up even faster. Some municipalities do have a "grandfather clause" for current owners who rent to vacationers. Check with the town where you want to buy to see what they are planning for vacation rental zoning.