STX rents coming down?

Hmmmm.

Im no landlord, but I can’t remember the last time the price of anything went down around here.

Rents might come a bit over the next year or so. But, keep in mind that a lot of rental stock is being turned into AirBNB and the like. In my own case, I used to rent long term, but, I wouldn't even consider it now. Why have whinny tenants and all their personal problems when you can make 4X as much with short term and they're here today and gone tomorrow?

Posted by: vicanuck

Rents might come a bit over the next year or so. But, keep in mind that a lot of rental stock is being turned into AirBNB and the like. In my own case, I used to rent long term, but, I wouldn't even consider it now. Why have whinny tenants and all their personal problems when you can make 4X as much with short term and they're here today and gone tomorrow?

Because at some point, there will be no way for anyone to live on the island, as all of the housing stock that used to be available to locals gets turned into high dollar vacation housing. 

Posted by: ledogboy

Posted by: vicanuck

Rents might come a bit over the next year or so. But, keep in mind that a lot of rental stock is being turned into AirBNB and the like. In my own case, I used to rent long term, but, I wouldn't even consider it now. Why have whinny tenants and all their personal problems when you can make 4X as much with short term and they're here today and gone tomorrow?

Because at some point, there will be no way for anyone to live on the island, as all of the housing stock that used to be available to locals gets turned into high dollar vacation housing. 

St. John.

This is a problem all over the world as tourism increases. How can I turn my little piece of paradise into a piggy bank? LOL

We have plenty of housing on STX that is far from desirable as vacation housing.

Posted by: ledogboy

Posted by: vicanuck

Rents might come a bit over the next year or so. But, keep in mind that a lot of rental stock is being turned into AirBNB and the like. In my own case, I used to rent long term, but, I wouldn't even consider it now. Why have whinny tenants and all their personal problems when you can make 4X as much with short term and they're here today and gone tomorrow?

Because at some point, there will be no way for anyone to live on the island, as all of the housing stock that used to be available to locals gets turned into high dollar vacation housing. 

The lack of resort accommodations is driving up the vacation rental demand and rates.  Once the supply of resort rooms recovers and/or new inventory is added the market should return to normal.  The laws of supply and demand are clearly at work.

The other key factor in rental rates is the availability of direct flights into St. Croix.  It's much easier to fly direct to St. Thomas than  St. Croix.

Posted by: jaldeborgh

Posted by: ledogboy

Posted by: vicanuck

Rents might come a bit over the next year or so. But, keep in mind that a lot of rental stock is being turned into AirBNB and the like. In my own case, I used to rent long term, but, I wouldn't even consider it now. Why have whinny tenants and all their personal problems when you can make 4X as much with short term and they're here today and gone tomorrow?

Because at some point, there will be no way for anyone to live on the island, as all of the housing stock that used to be available to locals gets turned into high dollar vacation housing. 

The lack of resort accommodations is driving up the vacation rental demand and rates.  Once the supply of resort rooms recovers and/or new inventory is added the market should return to normal.  The laws of supply and demand are clearly at work.

The other key factor in rental rates is the availability of direct flights into St. Croix.  It's much easier to fly direct to St. Thomas than  St. Croix.

 

New hotels and resorts will not be built on St. Croix in my lifetime. The government has clearly indicated time and again that this is the rule. Sure Carambola and Divi will reopen, but, there now exists a large percentage of travellers who prefer AirBNB type lodging to hotels. I keep my AirBNB rate lower than hotels/resorts to attract them and it works very effectively...I have all the business I want. I disagree on the ease of travel to St. Croix. Its certainly not difficult to get here and there are several affordable airline options.

Posted by: vicanuck

New hotels and resorts will not be built on St. Croix in my lifetime. 

I disagree on the ease of travel to St. Croix. Its certainly not difficult to get here and there are several affordable airline options.

Well they are calling The Fred the first new hotel on STX in some many years.  Caravelle is currently doing major renovations during low season.

All depends on where you are coming from and definition of difficult.    Yes, we have multiple options to get to STX.  A lot of it seasonal though.  For many it's more than 1 stop to STX.  That can make for a long, more costly "difficult" trip.  It could be more options, less stops, therefore lower cost to STT depending on where you are coming from.  And affordable also depends on your definition and where you are coming from.  Mileage wise I think we are getting raked by the airlines due to low competition.  Routes of similar distance with more competition and more travelers have lower rates.  And it's not like the planes are coming in half full to STX.  Hopefully when the Carambola and Divi are back operating we'll get more demand and with that more flight options and lower cost as opposed to same flight options at higher cost.

Rising rental rates is a national trend that has made its way to the VI.

https://www.cnbc.com/2018/03/22/rents-are-rising-at-the-fastest-pace-in-almost-two-years.html

Its cheaper to fly to Ft. Lauderdale than to Puerto Rico. I've gone to Ft. Lauderdale for the weekend over the past year on Sprint several times. Very affordable.

RE: Cheaper options, I don't know if the government's planned 50k per unit offer to landlords is going to work or not. As usual there are scant details on it. But that will also be Section 8 tenants preferred. Seems there are a lot of people who don't qualify for section 8 (or don't want to live in section 8 housing) but still can't afford rentals. 

Posted by: Fishbait

RE: Cheaper options, I don't know if the government's planned 50k per unit offer to landlords is going to work or not. As usual there are scant details on it. But that will also be Section 8 tenants preferred. Seems there are a lot of people who don't qualify for section 8 (or don't want to live in section 8 housing) but still can't afford rentals. 

I would never take money with strings attached from the VI government. Just like the the EDC program, I would never have the government telling me who to hire, how much to pay them, what charities to donate to, etc. Its just not worth it.

  We have a tenant that just moved into our downstairs apartment.  He was in Man Camp out at Limetree.  He says man camp is full, with a waiting list.  $1650 a month for a cube...  His vacancy was filled the next day.

  We've always had great luck with long term tenants.  Rent has been adjusted to current rates and he's thrilled to have a nice place to call "home".  Working six 12 hr days a week we might see him on Sunday..  

  To answer your question, no, rents have not come down.

We had a FEMA tenant move out after 1 1/2 months and got a refinery supervisor in the SAME DAY. 

so, no. the rents are not going down yet 

Well I haven't seen any recent reasonably priced places for rent on that same site. We went with renters who would sign for at least 91 days. So far we've had private contractor recovery workers, FEMA and a refinery supervisor & wife. I can't complain as the place stays in nice shape.