Our real estate market in the Great Smoky Mountains is known among investors as one of the top 10 places to invest for overnight rentals. Vacation cabins are incredibly popular, and we attract millions of visitors every year. What makes this region such a draw for so many is the variety of offerings. We have the Great Smoky Mountains National Park at our doorstep. Pigeon Forge and Gatlinburg work to be the absolute best at hosting festivals, parties, and other events. Outside of the holiday festivities which always leave our rental market “sold out,” our local communities play host to car shows, concerts, and all sorts of other activities throughout most of the year. On top of that, our local attractions – Dollywood is well known, but also the museums, go-cart and miniature golf, and many other family-themed local businesses that cater primarily to our visitors – provide plenty of fun and entertainment.
So over the years, the vacation rental cabins have added to the experience of being in the mountains. Our rental companies have worked hard to continually develop the cabin model so that it best accommodates guests’ needs, from everything to including game rooms with pool tables to the eventual construction of indoor swimming pool areas within cabins. The goal has always been to make the cabin as appealing as possible to guests so that it stays booked as many nights of the year as possible.
If you’ve been seriously thinking about buying a vacation rental cabin and have been watching our market these last few months, I’m sure you have noticed the trend of our region as a sellers’ market hasn’t slowed down from a year ago. In an article I wrote a year ago, I shared with you that the number of available cabins on the market had begun to slow. Since then, we’ve seen that number continue to decline while the prices have continued to climb. As the prices have reached a point that is almost in line with the price to build a new cabin, we have seen building begin to make a comeback this year.
The good news in this is that even as the prices rise, the number of tourists visiting our region has risen with it. What’s more, we’ve seen the number of people staying a little further outside Pigeon Forge rise with it. In March, local media were reporting record numbers of visitors in places like Wears Valley, as there are ways into the National Park from that side of the county that have begun to be discovered.
For sellers, the important thing to remember is that as construction continues to ramp up, the window of opportunity to sell your cabin will begin to close. Eventually new construction will be as appealing as buying something existing, so we expect to see prices level off – not drop, but stop climbing as buyers shift to a building focus. For buyers, the important thing to remember is that even though the deals of yesterday are gone, cabins are still a very strong investment option thanks to our thriving tourist industry.
If you are planning to buy or sell a cabin, or build a cabin and would like to more about the current market, my team and I are always here to help! Call or text us at 865-654-2111 and we will be glad to answer any questions you have!