🔥 STR Quarterly Report: Trends & Opportunities You Can't Miss

^TRENDING:

Hello STR Scout,

🔎 Key data released their Quarterly Short-Term Rental report, and here are the key takeaways.

🏡 Explore 18 new STR deals across 14 markets.

📰 Catch trending news nuggets to stay informed and ahead of the game.

Thank you for being a valued part of our STR investor community.

Cheers,

Andy Thoms
STR Scout

😎 In STR real estate investing, knowledge is power. The more you understand the market, the better equipped you are to turn opportunities into lasting wealth, amazing experiences, and security.

Charming Coastal Cottage in Rockport's Coral Reef Community – Turnkey Investment with Rental Income Potential

$418K | Rockport, TX: Cozy 3BD, 2BA cottage, 1224 sqft, perfect coastal getaway with rental income potential

• Water View

• Community pool and boat cleaning station!

• Downstairs bar and half bath for outdoor entertainment!

• Projection: $20K

View Property Details 
STR Agent: Kathleen Miller
Text or Call: (361) 815-8991
Website 

Want to see your property here? Learn more

Maggie Valley's Moonshine Mountain Retreat

$550K | Maggie Valley, NC: Beautiful 4BD, 2BA retreat, 2007 sqft, nestled in the mountains

• Experience the serenity of mountain living in this newly renovated home, designed to offer both style and practicality.

• Currently a thriving short-term rental, offering both a retreat and income potential.

• Fully furnished: Includes new appliances, offering convenience and style.

• Average Host: $49K-$86K | Super Host: $86K-$125K

View Property Details 
STR Agent: Tyler Coon
Text or Call: (828) 620-2541
Website

Want to see your property here? Learn more

Summary of Key Data Quarterly Report

Key Data just released their latest short-term rental (STR) report, and we've taken a close look at the results. Here are the key findings, STR insights on U.S regional STR results, that can help you stay informed and make more informed decisions in this ever-changing market.

Market Trends

• Fall vacation rental occupancy is pacing slightly ahead of last year, indicating a strong outlook for the season.

• The market continues to experience the effects of increased supply and softening demand, leading to lower occupancy rates. However, the pace of new supply is showing signs of slowing, which may help stabilize the market.

• While daily rates have remained relatively stable, declining occupancy has led to a decrease in RevPAR (Revenue Per Available Room). This emphasizes the importance of maintaining a strategic pricing approach.

Booking & Stay Patterns

• Booking windows are slightly longer compared to last year, providing more opportunities to capture late bookings. However, they remain shorter than in 2022.

• A slight decrease in average stay lengths has been observed, which could impact overall occupancy rates. Implementing strategies such as “Stay More-Save More” discounts may help encourage longer stays.

Regional Performance

• Regional performance has varied, with the Southwest U.S. seeing a 2% increase in occupancy, while other areas, like the Hawaiian Islands, have faced more significant challenges due to factors such as wildfires.

• Certain regions, including New England and the Midwest, have experienced rate increases, while others, like the Hawaiian Islands, have seen notable declines. Understanding these regional dynamics can inform better pricing decisions.

Economic Impact

• Inflation slowed to 2.9% in July, leading to lower gas prices and airfare. These changes could influence travel patterns in the fall, potentially affecting booking trends.

Booking Source Insights

• A slight increase in direct bookings has been observed, along with a 7% rise in Airbnb bookings. Conversely, Vrbo bookings have decreased by 9%, indicating a shift in traveler preferences.

Technological Influence on Travel Planning

• Younger travelers, particularly Gen Z, are increasingly turning to digital influencers and online videos for travel planning, while older generations show less reliance on these trends.

• Despite the growing interest in AI, its use in travel planning remains limited, with only 11.3% of travelers utilizing it this year.

The insights shared from Key Data’s report are here to offer information and perspective that might help the STR Scout community navigate the current market. By staying informed, the hope is that you can make thoughtful decisions that align with your goals. Our focus is on providing clear, transparent, and unbiased insights to support your success, one decision at a time.

Explore how your STR region is performing.

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FSBO | OFF-MARKET STRs

$480K | Divide, CO: 3BD, 2BA, 1728 sqft home. Newly remodeled with luxury finishes. AirBnB-friendly with estimated $65K-$93K annual income. Fenced yard, 38 mins to Pikes Peak. View Post

$650K | Joshua Tree, CA: Unique STR on 2.5 acres with mountain views. Fully permitted, 100% occupancy, and $130K projected revenue in 2024. Seller financing available. View Post

$2.2M | Fort Lauderdale, FL: 4BD, 3BA mid-century home with 2511 sqft. Successful Airbnb with open concept, vaulted ceilings, and poolside access. Walk to the beach. View Post

ACTIVE STR LISTINGS 

$335K | Dallas, TX: 3BD, 3.5BA modern new build near downtown. Corner lot with stucco, wood, and siding. Open floor plan with quartz countertops. STR/MTR allowed. View Post

$400K | Sodus Point, NY: 2 homes (4BD, 2BA & 2BD, 1BA) on 1 lot with large detached garage. Established vacation rental with $68K+ gross income. Walkable resort village near Lake Ontario. View Post

$415K | Mountain View, AR: Two cabins on 5 acres, established Airbnb business. Cabin #1: 1BD, loft, 1BA, sleeps 8. Cabin #2: 1BD, 1BA, sleeps 6. Turnkey with future booking plan. View Post

$499K | Columbus, OH: 2BD, 2BA STR in a popular neighborhood. Strong rental history with $69K in 2023 revenue. Mid-term rental potential. Furniture optional. View Post

$575K | Thornton, NH: 3BD, 2.5BA earth-built home with 2112 sqft. Successful STR near Waterville Ski Area. Features new HW flooring, exposed rock wall, and private balcony. Fully furnished. View Post

$685K | Lake Lure, NC: 4BD, 4BA home with 3332 sqft. Includes a remodeled basement with movie theater, gourmet kitchen, and expansive deck with hot tub. STR generating $132K/year. View Post 

$725K | Tacoma, WA: 3BD, 2.5BA remodeled rambler with 1385 sqft. Stunning ocean and mountain views. Full-time Airbnb generating $75K/year. New kitchen, metal roof, and outdoor kitchen. View Post

$820K | Blue Ridge, GA: Upscale turnkey cabin with over $80K in high-end furnishings. 2023 rental income of $104K. Serene, wooded setting with easy access. Strong STR history. View Post

$900K | Nashville, TN: 4BD, 4BA luxury NOO STR with 1844 sqft. Rooftop deck, hot tub, and downtown views. Projected earnings up to $176K/year. Close to major attractions. View Post 

$925K | Jekyll Island, GA: Renovated duplex in Georgia State Park. Successful STR with $115K peak annual revenue. Managed by Jekyll Island Authority. Strong Airbnb history. View Post 

$998K | Pinckney, MI: 4BD, 3.5BA fully remodeled four-story waterfront home on Portage Lake. Features quartz kitchen, marble vanities, Trex deck, and private frontage. View Post

$1.049M | Nashville, TN: 4BD, 4BA NOO STR-eligible unit with 1872 sqft. Rooftop deck, chef's kitchen, hot tub. Near major developments and Oracle HQ. $50K furniture credit included. View Post

$1.895M | Whitefish, MT: 5BD, 6BA home on 2.31 acres with 4737 sqft. Features two primary suites, gourmet kitchen, theater, office, and large patio with hot tub. View Post

🏖️ Playa del Carmen & Akumal Top Hotel Hotspots: Playa del Carmen (89%) and Akumal (82%) boasted the highest hotel occupancy rates in Mexico's first half of 2024. With strong tourist demand, these areas present lucrative opportunities for short-term rental investors eyeing high occupancy and steady income.

💥 U.S. Housing Market on the Brink? The housing market is deeply distorted by financialization, with high prices fueled by fraud and risky practices. As these conditions mirror past bubbles, a market crash seems inevitable, posing significant risks for property investors.

🏠 Investor Home Buys Surge as Americans Turn to Renting: Investor purchases of U.S. homes rose 3.4% in Q2 2024, the biggest increase in two years. Strong demand for rentals, as homeownership remains out of reach, is driving this trend. Investors are flocking to single-family homes, particularly in San Jose and Las Vegas.

📉 U.S. Consumers Delay Vacations, Travel Industry Feels the Pinch: With economic uncertainty rising, lower-income Americans are cutting back on travel. Companies like Airbnb and Marriott report slowing U.S. growth, as consumers opt for last-minute, lower-cost bookings. Short-term rental investors may need to brace for tighter margins.