By Daily Mail (U.S.) | Created at 2025-03-21 12:12:30 | Updated at 2025-04-06 05:59:47
2 weeks ago
Homeowners who dreamed of making extra cash by renting out a vacation property in a stunning coastal city are now flocking to sell.
Buyers were initially drawn to Galveston during the COVID pandemic, taking advantage of work from home orders to buy themselves a house near the beach that they could escape to, according to the Galveston Daily News.
For some, buying on the barrier island came with the perk of being able to convert the properties into short-term rentals in a get-rich-quick scheme flaunted on social media.
'People were saying, "Oh yeah, buy a vacation home rental in Galveston and you will be making $5,000 a week; that's $20,000 a month and you only have... $1,000 in expenses,' Claire Reiswerg, co-owner of Sand 'N Sea Properties recounted.
'We’re sitting there reading that stuff and saying "they’re out of their minds,"' said Reiswerg, whose company manages vacation rentals.
During that time, the number of registered short-term rentals in Galveston more than doubled, with 2,300 listed in 2021 to 4,900 two years later.
But in the years since, many of those who purchased homes to convert into vacation rentals have come to realize that it is actually a competitive and labor-intensive field.
'A lot of these people that are just on Airbnb or on VRBO, they’ve got these properties they’ve bought up and they’ve listed themselves and they’re having to keep up with the maintenance of the home, the yard, the cleaning, the linen and they find that it’s not free money,' said Stacey Weber-Rubio, a local real estate agent.
'It's hard work. It's a real job,' she added.
This year alone, the Galveston real estate market climbed by 26.7 percent in homes for sale in February 2025 compared to January 2025, according to Rocket.
Houston-area residents were drawn to Galveston during the COVID pandemic, taking advantage of work from home orders to buy themselves a house near the beach that they could escape to during the year
For some, the reality of running a short-term rental may have become too much
For some, the reality of running a short-term rental may have become too much, as one mother described on Facebook the horrors her daughter and her friends faced when they tried to rent an Airbnb in the area for Spring Break.
Courtney Elizabeth wrote on the Completely Galveston Facebook group that the trio -all of whom are teachers - booked a three-night stay at an 'adorable' house.
The reviews for the property were great, except for one outlier that the owner rebutted, Chron reports.
But when the woman's daughter and her friends arrived, they found bugs, pet hair and mold on the bedsheets; crumbs on the kitchen counter, stained headboards and carpets and other - presumably human - hairs in the bathroom.
The trash had not been taken out, and towels were still stained with the previous guests' makeup.
When the group then tried to contact Airbnb, they had trouble getting the company to 'take them seriously' as the host told them the pictures from the cottage 'don't look like my home.
After having trouble finding an alternative, the teachers were forced to book a room at the San Luis, but only for one night - and were forced to return home the next day.
Now, many of the former vacation homes that were listed on Airbnb and VRBO are being sold - with the island currently experiencing an 18-month supply of houses, according to the Galveston Daily News.
Supply of houses references the number of months it would take to sell every currently listed home. Four to five months represents a balanced market.
The island is currently experiencing an 18-month supply of houses
With all the houses currently on the market on the island, prices have plummeted 4.1 percent
David Bowers, a real estate agent with Better Homes and Gardens Real Estate, told the outlet that the former vacation home owners selling their homes is a 'major driver in the market.'
'What’s fascinating is this may be the first wave of sellers that bought during the pandemic to do vacation rentals and they’re souring on vacation rentals,' he said.
With all the houses currently on the market on the island, prices have plummeted 4.1 percent, according to Zillow.
The average home price is now just $330,668.
That provides those who still want to live on the barrier island options for a refurbished and fully-furnished home at good prices - which some are now taking advantage of.
'Lots of people are jumping into the market right now because they think they can build a better mouse trap,' Bowers said.
