FAQ: Do you expect a crash in the Airbnb market?

A: Data from AirDNA, a short-term rental (STR) analytics firm, has indicated demand growth of 19.8% year-over-year. Despite this increase in bookings, the number of STR listings on the market has increased sharply, leading to lower occupancy rates. Many properties are now facing vacancy and financial losses due to the lack of rental income.

Will we see a sudden influx of STR homes back on the market?

We’ll more likely see a pivot into long-term rentals. Here’s why:

• Locked in rates: Many of these homes were purchased with historically low interest rates. The rent could cover all the homeowner’s expenses.

• Housing supply is still low: The current demand for housing still outpaces home building, which means a large pool of potential renters.

• Inflation: Homebuyers have been priced out, increasing rental demand and forcing higher rents. Also, investment properties have historically proven to be an excellent hedge against inflation.