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alveston's vacation rental bubble has burst, leaving a trail of disillusioned homeowners in its wake. The island's barrier island charm once lured buyers with promises of easy wealth through short-term rentals, but the reality is far from it. As one local real estate agent quipped, "It's hard work. It's a real job." Many who bought into the get-rich-quick scheme are now selling their properties, contributing to an 18-month supply of houses on the market.

    The Galveston Daily News reports that during the pandemic, buyers flocked to the island, taking advantage of work-from-home orders to purchase homes near the beach. Some saw an opportunity to convert these properties into vacation rentals, but the dream quickly turned sour. "People were saying you could make $5,000 a week; that's $20,000 a month with only $1,000 in expenses," recalled Claire Reiswerg, co-owner of Sand 'N Sea Properties. "We're sitting there reading that stuff and saying they're out of their minds."

    The number of registered short-term rentals in Galveston more than doubled between 2021 and 2023, but many owners soon realized the labor-intensive nature of maintaining these properties. Stacey Weber-Rubio, a local real estate agent, noted that owners must handle maintenance, yard work, cleaning, linen supply, and more – far from "free money." This year alone, the Galveston real estate market saw a 26.7% increase in homes for sale in February compared to January.

    As prices plummeted 4.1%, with the average home price now at $330,668, according to Zillow, some buyers are taking advantage of the opportunity to purchase refurbished and fully-furnished homes at good prices. David Bowers, a real estate agent with Better Homes and Gardens Real Estate, observed that this may be the first wave of sellers who bought during the pandemic to sour on vacation rentals. "Lots of people are jumping into the market right now because they think they can build a better mouse trap," he said.