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    Too Many Rich People Bought Airbnbs. Now They're Sitting Empty

    Market analysts say numerous U.S. Airbnbs are currently unoccupied because many affluent people and investors listed short-term rentals on the site following an explosion driven by the pandemic. AirDNA estimated that the number of available short-term rental listings in the U.S. rose 23.2 percent year-over-year to 1.38 million in September. Last year, pent-up travel demand fueled a surge in short-term rental bookings in many second-home destinations, causing a boom in short-term offerings as former long-term property owners switched to short-term, and institutional investors began mass purchases of properties to rent out. AirDNA found occupancy rates shrank in 31 of the top 50 largest U.S. short-term rental markets from July through September. Markets where supply had grown by more than half had an average occupancy decline of over 10 percent in August, while revenues decreased by 8 percent. A larger inventory of Airbnbs to choose from has driven down occupancy rates in certain markets, pinching some hosts. The glut in the supply market could create opportunities for consumers to get better deals on accommodations after months of sky-high price appreciation.

    Time (11/02/22) Megan McCluskey

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