Markets just shed nearly $2 trillion in value—the sharpest drop since 2023—triggering fresh fears of a recession. At the same time, housing inventory hit a 17-year high, giving STR buyers more leverage, better pricing, and room to negotiate. In this week’s edition, we break down what this market shift means for short-term rental investors—and how to turn volatility into opportunity.

Here’s what we’re tracking:

🔥 STR Classifieds – 10 standout STR listings from across the U.S.—from $275K gulf coast retreat to $2M+ ocean community luxury.
🏠 17-Year Inventory High – Why this rare supply spike is shifting the power back to buyers—and how to capitalize.
📰 STR News Nuggets – All the headlines shaping Airbnb, travel, and housing—from regulation shakeups to economic shifts.
📊 Housing & Economic Weekly Update – Recession signals flash brighter: job growth is slowing, mortgage rates are volatile, and new tariffs may reshape the housing outlook.

Let’s dive in 👇

— The STR Scout Team

🌳 $275K | Mobile, AL: Charming 3BD/2BA carriage house in Midtown’s Old Dauphin Way. STR grossing $40K+/yr, sleeps 10, fully furnished. Updated roof/HVAC, fenced courtyard, walkable to downtown. View Post.

🏡 $389K | Dallas, TX: Modern 4BD/4BA w/ private-entry MIL suite + yard. Can split into 3 units—ideal for STR or mid-term rental. Two living areas, great for families or tenants. Multi-use flexibility! View Post.

🏙️ $455K–$460K | Houston, TX: Turnkey STR portfolio! 4BD/3BA, 2220 sqft homes near Heights/Downtown. One earned $91K+ in 2024 w/ 13% cap. No HOA, no flood zone, high-end finishes. Buy 1–4! View Post.

🌄 $479K | Zionville, NC: 2BD/3BA log cabin on 2.57 acres in gated Carefree Cove. STR-friendly w/ guest suite & mini kitchen, hot tub (neg.), and stunning seasonal views. Peaceful mountain retreat! View Post.

🍹 $529K | Panama City Beach, FL: Margaritaville Surf Bungalow! 1BD + bunk loft, 2BA, 760 sqft. Steps to private beach, lazy river, pool w/ slides, & poolside bar. New build w/ gourmet kitchen. STR-ready! View Post.

🎢 $735K | Pigeon Forge, TN: 4BD cabin just 5 miles from Dollywood! Sleeps 12, all king suites, 4 covered outdoor spaces, hot tub, arcade, EV charger. $72K gross in 2024 w/ upside. Updated & accessible. View Post.

🏞️ $889K | Long Pond, PA: 4BD/4BA modern lakefront Airbnb w/ private dock, 2 luxe primary suites, theater, & smart home tech. Built in 2023, soaring ceilings, epic views. Best-priced modern lakefront! View Post.

🌴 $1.499M | Cape Canaveral, FL: 2 blocks from the beach! Fully furnished STR w/ pool, spa, fire pit, & 6-seater golf cart. Turnkey gem for large groups—prime investment near the sand. View Post.

🌅 $1.65M | Wilmington, NC: Luxury riverfront duplex w/ panoramic Cape Fear views. Each unit 3BD/2BA w/ quartz kitchens, spa baths, high ceilings, & carports. STR goldmine or house hack dream. View Post.

🌊 $2.25M | WaterColor, FL: 4BD/3BA beach home in Camp District near pool, fully updated & turnkey. Strong $168K rental projection. Room to add carriage house. Steps from 30A lifestyle & top resort amenities. View Post.

Inventory Surges, Prices Falling (in many markets, not all), and Smart Investors Are Making Their Move

📈 After years of tight inventory and overheated bidding wars, short-term rental buyers are finally back in control. As of March 2025, active housing inventory nationwide surged to nearly 1 million homes—a 28.5% increase year-over-year—marking the strongest supply levels since mid-2020. For STR investors, the long-awaited window to re-enter or expand is wide open.

🔍 Regional Momentum: Where the Smart Money Is Looking

🏔️ West: Inventory Rebounds in High-Demand Markets

The Western U.S. leads with approximately 320,000 homes on the market, up 40% year-over-year. That puts inventory just 5% below pre-pandemic levels, reviving access to prime STR zones in California, Colorado, Utah, and Arizona—once too tight to enter.

In Denver, housing supply has rebounded substantially—active listings in March 2025 jumped 67% year-over-year, now sitting roughly 75% above pre-pandemic levels. Colorado Springs shows a similar surge, with inventory at a decade high, up 33% YoY and about 40% above early 2019.

Despite this influx, home prices have remained relatively stable—Denver’s median price is down just 2.6% YoY, while Colorado Springs has seen a 3.8% increase. Listings are also taking longer to sell, averaging 1–2 months on the market, which is up about 15–20% compared to 2024.

🌴 South: Buyer-Friendly Conditions in Vacation Hotspots

The South now holds 420,000 active listings—a 31% increase with 4.5 months of supply, the highest of any U.S. region. For STR buyers eyeing Florida, Tennessee, the Gulf Coast, or the Carolinas, the playing field is finally tilting in their favor.

🏙️ Northeast: Still Competitive, Still Profitable

Though active listings rose 11% to around 110,000, this region remains 15% below 2019 levels. In tight vacation markets like Cape Cod, the Catskills, and coastal Maine, competition remains—but so does pricing power for well-positioned STRs.

🌽 Midwest: Undervalued and Ripe for Cash Flow

With roughly 130,000 homes listed (up 17–18%), the Midwest is quietly becoming a buyer’s market. Inventory is just 5% off 2019 levels, and low property prices combined with strong travel demand in emerging destinations offer high ROI potential.

🕰️ Days on Market Rise, Bringing Leverage Back to Buyers

National median days on market hit 53 days, up three days from last year. That means STR investors now have more time for negotiation, due diligence, and financial modeling—a stark contrast to the hyper-competitive pace of 2021–2023.

🧮 Supply Builds, Prices Settle

The months of supply climbed to 4.1 months, nearing the 4–5 month “balanced” benchmark. With price growth cooling across most regions, savvy STR buyers can now enter without the fear of overpaying.

🆕 Fresh Inventory Means Fresh Opportunity

March saw 100,000 new listings, the strongest March performance in three years. Sellers are re-entering the market, giving STR investors more choices—and less competition per deal.

🧭 Takeaway for STR Investors

This isn’t a fleeting moment(yet)—it’s a strategic shift. Markets are stabilizing for now to normal levels. Inventory is back. Pricing is no longer running away from you. The conditions are aligning for calculated, profitable STR acquisitions—especially in regions and pockets showing the steepest inventory growth and softest competition.

⚖️ Bottom Line: The Buying Window Is Starting to Open in Some Markets

For STR buyers who’ve been patient now hold the advantage.
Inventory is up. Time is back on your side. And after years of chasing overheated markets, today’s buyers can move with confidence—and a clear edge.

For STR sellers, this is a moment to be strategic.
Not every market is the same, and not every property fits the same playbook. Understand your local dynamics. Price for your situation—not just for your ideal. Markets are shifting, and buyers are more selective.

If you’re motivated to sell now, adjust early and price right, and post your deal FREE in STR Homes for Sale to reach the largest audience of active STR investors. The best-positioned listings are still moving—and often ahead of the pack.

Keeping Your Hand on the Pulse of STR, Airbnb, and Real Estate Markets.

🔥 Stock market volatility escalates amid growing recession fears as analysts warn that President Trump's new tariff policies might trigger an economic downturn. JPMorgan has raised recession risk to 60%, with experts concerned about potential stagflation where high inflation combines with economic stagnation. The tariff situation continues developing rapidly, creating uncertainty across multiple sectors including real estate and travel. Analysis

🏠 Maui officials reconsider their controversial short-term rental ban following a new economic impact report highlighting potential damage to the local economy. The report suggests that the initial ban could cost the island billions in tourist spending and thousands of jobs, forcing county officials to reevaluate their approach to vacation rental regulations. This development offers a glimmer of hope for STR operators who faced extinction under the original policy. Report

💰 Airbnb CEO Brian Chesky has sold approximately $463 million worth of company stock in recent transactions, according to regulatory filings. This substantial insider selling has raised eyebrows among investors, though the company maintains that the sales are part of Chesky's regular financial planning. The timing has nonetheless sparked speculation about the company's future growth prospects amid challenging regulatory environments in key markets. Disclosure

🏘️ South Lake Tahoe moves to ban short-term rentals in certain areas, joining the growing list of tourist destinations implementing stricter regulations. The popular winter and summer destination is responding to community concerns about neighborhood character and housing availability. This development continues the nationwide trend of destinations seeking balance between tourism economics and quality of life for permanent residents. Details

⚖️ New Braunfels short-term rental ban faces fresh legal challenges from property owners claiming economic harm and constitutional violations. The Texas city's restrictions, which limit STRs to specific areas, have become a battleground for property rights advocates. The outcome of this legal challenge could establish important precedents for other municipalities considering similar regulations across the Southwest.

🔍 Steamboat Springs shifts enforcement strategy against illegal short-term rentals to target property managers rather than individual owners. This tactical change represents a more efficient approach to compliance by holding professional managers accountable for verifying proper licensing. The ski town continues seeking balance between tourism housing needs and maintaining community character through more strategic enforcement.

📊 Airbnb's transparency initiative showing total costs upfront has significantly impacted consumer behavior and pricing strategies, according to new UNLV research. The study found that properties with higher cleaning fees experienced decreased bookings after the policy change, as consumers could more easily compare true costs. This transparency trend continues reshaping the industry, forcing hosts to reconsider fee structures and pricing strategies.

🏝️ Hawaii's tourism landscape faces transformation as major hotel corporations increasingly control the state's visitor industry. This consolidation is reshaping the competitive environment for independent operators and smaller STR businesses. The trend raises concerns about tourism diversity and authentic experiences as corporate standardization potentially replaces local character across the islands.

🌊 Some industry experts question whether Maui's potential reversal on vacation rental bans comes too late to repair damage to the island's tourism reputation. The uncertainty created by flip-flopping regulations may have already pushed visitors and investors toward more stable destinations. Rebuilding traveler confidence could require significant time and marketing resources to overcome the perception of regulatory instability.

🏘️ Denver's housing market shifts toward buyer-friendly conditions as March data shows increased inventory and longer selling times. The Colorado capital's real estate dynamics provide breathing room for buyers after years of intense seller advantage. This trend reflects broader cooling in previously overheated markets, potentially creating openings for investors seeking entry points into desirable urban locations.

📈 Atlanta housing market continues showing resilience despite national headwinds, according to the latest Housing Scorecard. The Georgia capital maintains relatively strong metrics in sales volume and price appreciation compared to other major metros. This regional variation highlights the importance of market-specific analysis rather than relying solely on national trends.

💲 Monthly mortgage payments reach record levels as high interest rates combine with elevated home prices to create unprecedented affordability challenges. The typical U.S. homebuyer now faces monthly costs approximately double pandemic-era lows, putting homeownership increasingly out of reach for many Americans. This affordability crisis continues reshaping housing demand patterns across the country.

🔑 Home sales weakness appears even more pronounced when accounting for seasonal adjustments, according to analysis from First American's Chief Economist. The data suggests that transaction volumes remain significantly constrained despite slight improvements in some metrics. This persistent market sluggishness continues challenging both traditional and short-term rental investors seeking property acquisition.

🏡 New housing listings show modest increases nationwide, potentially easing extreme inventory shortages in some markets. However, high costs continue deterring many prospective sellers from entering the market as they fear being unable to find affordable replacement homes. This hesitancy maintains pressure on inventory levels despite slight improvements.

🔮 Private credit funds increasingly enter the residential mortgage market, potentially reshaping financing options for real estate investors. This trend introduces new capital sources beyond traditional banking, possibly creating alternative financing structures for STR operators. The evolution of mortgage funding sources could significantly impact property acquisition strategies and costs.

🏘️ Arizona homeowners face dramatic insurance cost increases as carriers respond to climate risks and rising replacement costs. Some property owners report premium increases exceeding 50%, creating additional pressure on rental economics and property management budgets. These insurance challenges add another layer of complexity to investment calculations in popular southwestern vacation rental markets.

📉 Global home price growth shows significant moderation compared to previous years, according to new international data. This worldwide cooling reflects higher interest rates and economic uncertainty across major economies. The trend creates both challenges and opportunities for cross-border real estate investors seeking vacation rental properties.

🏢 March job cuts data shows continued labor market cooling, with Challenger Gray reporting significant workforce reductions across multiple sectors. The employment slowdown raises concerns about consumer spending power and potential impacts on travel budgets. This economic indicator deserves close monitoring by STR operators forecasting occupancy and revenue expectations.

📊 Goldman Sachs warns that Trump's tariff policies could cause economic contraction, potentially impacting travel and discretionary spending. The investment bank projects significant GDP reduction if proposed tariffs are fully implemented. This economic risk factor requires careful consideration by STR operators planning expansion or renovation investments.

💼 Veteran market analysts revise recession forecasts upward as trade tensions intensify, with several major institutions now predicting economic contraction within 12 months. These revised outlooks reflect growing concerns about inflation, consumer spending, and business investment amid policy uncertainty. The evolving economic consensus suggests caution for hospitality sector expansion plans.

🇨🇦 Canadian property owners increasingly consider selling Florida homes as tariff tensions rise between the U.S. and Canada. Business owners in popular snowbird destinations report concerning declines in Canadian visitors and spending. This demographic shift could significantly impact seasonal rental markets in traditionally Canadian-favored destinations.

✈️ Travel cancellations surge as international tensions and economic uncertainty dampen U.S. outbound tourism. Alternative destinations in Canada, Western Europe and Mexico benefit from redirected travel spending. This shifting pattern creates both challenges and opportunities for vacation rental operators across different regions.

🌴 Hawaii experiences tourism boost despite declining travel trends in other U.S. regions, Japan and Canada. The islands' appeal as a domestic luxury destination remains strong despite affordability challenges. This resilience demonstrates the enduring appeal of premium vacation destinations even amid broader economic uncertainty.

⚠️ The Bahamas joins a growing list of destinations receiving new U.S. travel alerts, potentially impacting vacation booking patterns. The advisories, also affecting Saudi Arabia, France, Brazil, Germany, China, UAE, Spain, India and the UK, create additional complexity for travelers planning international trips.

🌮 Bucerias, Mexico emerges as an attractive alternative to crowded Puerto Vallarta, offering authentic experiences and better value for travelers. This charming beach town's growing popularity reflects the continued trend of travelers seeking less commercialized destinations. The shift creates opportunities for early STR investors in emerging locations.

📊 Travel stocks decline sharply as recession fears and tariff concerns rattle Wall Street. Major hospitality and vacation companies face significant valuation pressure amid economic uncertainty. This market volatility highlights the interconnection between macroeconomic factors and hospitality sector performance.

🏝️ Vacation providers report mixed Q4 results as consumer spending patterns shift amid economic concerns. Some segments show resilience while others experience softening demand, creating a complex landscape for operators. The varying performance across different price points and destination types offers insights into evolving consumer preferences.

📊 Weekly Housing & Economic Trends (Mar 31 – Apr 4, 2025)

Markets were rattled this week by a confluence of headwinds: renewed tariffs on Chinese imports, rising unemployment, and signs of slowing manufacturing. Although job creation surprised to the upside, investor sentiment soured as inflation pressures and global trade tensions reignited fears of a prolonged economic slowdown.

🏡 Housing Market Trends

📅 Economic Calendar

🔍 Key Takeaways:

• Mortgage Relief: Both 30-yr and 15-yr mortgage rates dipped slightly, offering modest buyer relief despite still-high affordability barriers.

• Builder Sentiment Slips: The HMI dropped again to 41, showing builders remain cautious amid demand concerns and input cost pressures.

• Permits Fall Again: Building permits ticked lower, pointing to potential supply constraints later this year.

• Labor Market Mixed: NFP surprised with 228K jobs, but rising jobless claims and a jump in unemployment to 4.2% suggest weakening undercurrents.

• Manufacturing Weakness: PMI held in contraction at 49.0; factory orders fell sharply by -0.5%.

• Tariff Shockwave: The White House’s new tariff package targeting over $20B in Chinese goods sparked broad-based market selling.

• Equity Carnage: All major indices saw 4–6% weekly declines, erasing $1.8T in equity value amid stagflation fears.

📌 Market Outlook

A volatile mix of inflation persistence, cooling labor indicators, and geopolitical tension is weighing heavily on markets. While mortgage rates are easing slightly, housing affordability remains fragile. The reintroduction of tariffs may worsen supply chains and cost pressures, complicating the Fed’s path forward. Prepare for more volatility in April as markets digest policy responses and inflation trajectories.

🧾 Key Source Data Links:

• Mortgage Rates: Freddie Mac Primary Mortgage Market Survey

• Housing Data: U.S. Census Bureau, Realtor.com

• Rents & Inventory: Realtor.com Rental Trends

• HMI: National Association of Home Builders (NAHB)

• Labor Market: Bureau of Labor Statistics (BLS), ADP National Employment Report

• Jobless Claims: U.S. Department of Labor

• Manufacturing & Factory Orders: Institute for Supply Management (ISM), U.S. Census Bureau

• Inflation: Bureau of Economic Analysis (BEA) – Core PCE

• Market Data & Equity Losses: Bloomberg, WSJ Markets

• Tariff Announcements: Reuters, The Guardian

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