PORT ARANSAS, Texas - Two recent articles in national publications support what is occuring in the Port Aransas real estate market. "Market for Vacation Homes Is on the Rise" reports the Wall Street Journal earlier this month.
The vacation home market on the Texas Gulf Coast is closely tied to the economic conditions of Houston, Austin, San Antonio and Dallas. The relative stability in these markets has prevented the extreme highs and lows seen elsewhere in the US (Florida, California, Nevada, etc).
Although the article "Real Estate: Finally a Good Investment?" in Smart Money (1/18/11) is geared towards the residential market rather than vacation homes, the logic holds true in both cases. Interest rates are still at or near historic lows and the long term prospects for inflation are likely. Typically, real estate performs well during inflation.
Investment income from short-term vacation rentals has been steadily increasing in Port Aransas. There are a number of theories as to why more and more people are opting for a family vacation on the Texas Coast. For most Texans, it is a short drive from home. Travelers can avoid the headaches associated with air travel (TSA pat downs, baggage fees, layovers, etc). The "Staycation" concept which keeps people close to home while getting away is another popular theory.
As a result, numerous condos and homes produce $30k to $50k+ in annual gross rental revenue. This can go a long way in covering expenses. What many prospects and buyers are saying is quite simple. They are looking for a sound investment that they can enjoy with their family.
If the trend from late 2010 and early 2011 is any indication, this could be a strong year for sales in Port Aransas and elsewhere along the Texas Gulf Coast.
Port Aransas / Mustang Island