MARKETS & TRENDS
TOURISM
Rolling the Dice MORE RISK AND MORE OPPORTUNITY IN THESE RENTAL MARKETS
by Ingo Winzer
Tourism & Restaurants
ll parts of the economy have been hit by the pandemic recession,
A
Percent Of Total Jobs
Jobs Lost
but none worse than the tourism and restaurant sector. Despite vaccinations and government efforts to “reopen” local economies, the pandemic remains in charge, so it’s difficult to know when large numbers of people will again go to Vegas, Disney, and local restaurants. Maybe not for a while, maybe never. Most people who work in the tour- ism and restaurant sector receive fairly low pay and are renters. In the baker’s dozen markets we’re listing this month, the renter market has and will be dis- proportionately affected. That means both more risk and more opportunity for investors in rental property. There will be more rental properties available during the next couple of years and fewer renters. The entire market will move to lower rents and renters will have less financial stability. Investors will have to be content with the proba- bility of poor returns for a while. That’s the risky part. But the price of rental properties will be negotiable for a while and it’s difficult to bet against a good recovery down the road. People want to visit Hawaii, New Orleans, and casinos. For investors who don’t need immediate returns, that’s the opportunity. •
National Average
11% -20%
29% -33%
Las Vegas, NV
21% -36%
Orlando, FL
16% -19%
Cape Coral-Fort Myers, FL
16% -35%
Honolulu, HI
16% -33%
New Orleans, LA
15% -20%
North Port-Bradenton, FL
14% -15%
West Palm Beech, FL
14% -39%
Anaheim, CA
14% -18%
Charleston, SC
13% -33%
San Diego, CA
13% -22%
Colorado Springs, CO
13% -17%
San Antonio, TX
13% -55%
San Francisco, CA
LOCAL MARKET MONITOR, CARY NC
Ingo Winzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employment and population. Winzer, who has analyzed
Our Investors Metro Analysis shows you the risks and opportunities in 200 local real estate markets at www.LocalMarketMonitor.com. Now with zip code rent data.
real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in finance from Boston University. Winzer resides in Cambridge, Mass. www. localmarketmonitor.com
78 | think realty magazine :: june 2021
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