The 2023 BnBust: Are Short-Term Rental Hosts in Trouble?

Short-term rentals can be categorized, at least at a surface level, as the “easiest” investments of 2021 and 2022. With low interest rates and a surge of post-pandemic tourism, new hosts were buying homes for cheap monthly payments, throwing some furniture in them, and making a six-figure return within a year of owning just one property. Naturally, this led more and more hosts to start building bigger vacation rental empires, buying as many properties as possible and inflating prices as a result.

But, the boom in BnBs caught on quickly, and more investors began tackling the same strategy. Before long, there were more short-term rentals than ever, but the same number of guests occupied them. Now, short-term rental hosts are facing lower occupancy as they struggle to compete over which properties will get which guests. So, is this the end of the short-term rental industry, or is the data showing something completely different? We brought on Jamie Lane, Vice President of Research at AirDNA, to give us a glimmer of hope.

Jamie knows short-term rental data better than anyone else. He knows which markets are growing, which are declining, which amenities get you the highest ROI, and why last-minute bookings aren’t a bad thing. He gives us a deep dive into what’s affecting the short-term rental market as a whole, whether it’s on a decline, and what hosts can do to beat out the competition when trying to fill their listings.

00:00 Intro

05:36 Quick Tip

06:24 2023 Short-Term Rental Predictions

10:48 Short-Term Rental Supply and Demand

22:01 Best Vacation Markets

26:13 The Bright Side of Regulations

29:13 A Boost in Last-Minute Bookings

33:13 Are the Big Cities Back?

33:43 The Recession's Impact on STRs

40:47 Where Is AirDNA Getting Their Data?

43:25 Tips for Hosts in 2023

54:11 Connect with Jamie!

~~~~

Join BiggerPockets for FREE Some BiggerPockets

~~~~

Find an Investor-Friendly Agent in Your

~~~~

Hear More from Tony on the “Real Estate Rookie

~~~~

Use the BiggerPockets Airbnb

~~~~

Try AirDNA

~~~~

Connect with Jamie:

LinkedIn:

Twitter: @Jamie_Lane or

~~~~

Connect with Rob (Robuilt) on YouTube, Instagram, TikTok, and Twitter:

YouTube:

Instagram:

TikTok:

Twitter:

~~~~

Connect with Rob and Tony on BiggerPockets:

Rob:

~~~~

Follow Tony and BiggerPockets on Instagram:

@tonyjrobinson or or

Episode 712

Show notes at: #realestatepodcast #biggerpockets712

Recommended Reading >> bit.ly/32kRpzw

Comments