Short-term rentals struggling

Airbnb hosts are dropping their rates and dealing with more vacancies in an oversaturated short-term rental market. Demand has declined, and the market has been flooded with properties that investors scooped up and rehabbed during the pandemic. Since August, around 70,000 new rental listings have been added per month. This increased inventory means that each short-term rental property in the U.S. received an average of 6% fewer nights booked.

Our take

Low interest rates added a ton of investors to the short-term rental market. The market has shifted tremendously since these homeowners came into the market, and now they have to adjust. The short-term rental market is very supply-sensitive, so with inflation and people pulling back, this is going to be tough for owners.