On The Market 56: Are New Short-Term Rental Hosts in For a Rude Awakening in 2023?
Short-term rentals have had a serious run over the past two years. As soon as interest rates dropped, everyone decided that buying a vacation rental or second home was the best move to make. This led to a surge in short-term rental investments across the US, as hosts began to almost outnumber guests. Now, vacation rentals are seeing a dramatic slowdown while a recession starts to shape, as Americans are less concerned about taking vacations and more about keeping their jobs.
So where is the vacation rental market headed? Were short-term rentals just a short-lived fad that could fade out faster than it took to be born? Or, is this a mere blip on the radar of vacation rentals, as guests still prefer hosts over hotels? We brought on Avery Carl, Jenny Yi, and Tony J. Robinson, three experienced short-term rental investors, to walk us through exactly what is happening in the market, what moves they’re making, and advice for getting through a recession.
We also talk about short-term rental regulations, which, surprisingly, many of the expert investors are in favor of. They speak on the saturation of “blue chip” vacation markets, and how some sleepier towns offer much better prospects for profit than the vacation markets most Americans know and love. If you own a vacation rental, plan on buying one, or just like staying at them, this episode gives you in-the-field opinions that most hosts won’t admit.
In This Episode We Cover
Who’s hurting and who’s thriving as the short-term rental market starts to lag
How to identify new markets that have low competition and high tourism potential
Short-term rental regulations and why it isn’t all bad news for hosts
How a 2023 recession could affect vacation rentals and vacation spending
Advice for new hosts as bookings and revenue starts to decline during a downturn
Vacation home price drops and whether or not this type of real estate is more vulnerable than the rest
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Tony’s Video on Short-Term Rental Recession Data
Book Mentioned in the Show
Short-Term Rental, Long-Term Wealth by Avery Carl
Connect with Avery, Tony, & Jenny:
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-56
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