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 BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market 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 Dave’s BiggerPockets Profile Dave’s Instagram Real Estate Rookie Podcast 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: Avery's Instagram Avery's BiggerPockets Profile Jenny's Instagram Tony's Instagram Tony's BiggerPockets Profile Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-56 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices