Rumors of an "Airbnbust" have spread online among short-term-rental (STR) hosts facing empty booking calendars, stiff competition for guests, and falling earnings. But talks of a downturn ignore the fact that the STR industry is bigger than ever, and some operators are thriving like never before. The number of nights booked at U.S. short-term rentals reached a record high in 2022, as did total revenue, according to AirDNA. Rather than a collapse of the industry, there are signs that it has hit a turning point. Some cities have allowed vacation-rental listings to multiply virtually unchecked, setting the stage for an oversupply that has come back to bite investors. Other places have cracked down and capped the number of permits, pacifying concerned citizens and preserving the profits of existing owners.
Business Insider (03/22/23) James Rodriguez; Dan Latu