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See how much rental income is possible with Vacasa. Get your free personalized income estimate today.

Hello STR Scout Members,

Here’s what’s trending to keep your investing on the right track:

🔑 STR Classifieds: Discover 18 turnkey Airbnb properties for sale—ideal for expanding your portfolio!

📊 Market Insights: Get the latest on inventory, DOM, and absorption rates to make data-driven investment decisions.

🌐 News Nuggets: Quick updates on Airbnb, STR, housing, economy, and more—stay in the know.

💸 Top Price Drops: See which 10 markets are experiencing the steepest price reductions for potential bargains.

Happy Scouting!

Andy Thoms
Editor, STR Scout

🔍 Scouting Tip: Prioritize location! A prime property holds value, rebounds quickly, and provides steady cash flow.

TOGETHER WITH VACASA

While the market dynamics have changed, independent market research from Key Data shows that Vacasa does a better job than other property managers at filling your calendar.

In nearly all markets we operate in, we booked more nights on our owner’s calendars that other property managers.

And, on average, a Vacasa owner sees 33% more guest bookings than our competitors.

See how much rental income is possible. Don’t leave money on the table. Get your personalized income estimate today. You have nothing to lose and potential cashflow to gain.

🌄 $825K | Austin, TX: Look at this gem! Established Hill Country STR since 2011, fully furnished and located on Austin's popular Fitzhugh Road near top breweries, distilleries, and wineries. In Texas’s #1 wedding destination area. Turnkey investment with recent appraisal at asking price. PM for details. View Post

🎸 $750K each | Nashville, TN: Two themed STRs (Dolly Parton & Johnny Cash) in Downtown Nashville, side-by-side with ROOFTOP DECKS and skyline views! Zoned mixed-use, permit-ready, secondary mortgage eligible—rare in Nashville! Each 3BD/3.5BA unit is fully furnished and projected to gross $170K combined or $90K individually. Walkable to music venues and 9 mins from Broadway. Nearly 5-star Airbnb reviews. Buy together or separately. View Post

🌲 $1.95M | Poconos, PA: Prime STR commercial investment—TWO turnkey homes on one lot at 1393-1395 Pocono Blvd! Combined 11BD/5.5BA, legally sleeps 26, generating $284K in revenue over the last year. Unique features: 14-ft indoor slide, basement speakeasy, modern kitchen with Viking stove, and private patios with hot tubs. Commercially zoned with no HOA, <10 mins to Kalahari, Mt. Airy Casino, and Camelback. Eligible for commercial financing. Rare opportunity to maximize income with large group buyouts! View Post

🏡 $449K | Orland, ME: Turnkey 4BD/1.5BA investment property, recently renovated top to bottom and currently operating as a successful STR. Ideal for investors with strong rental history and P&L available. Move-in ready and income-generating from day one! DM for details. View Post

🏰 $299.9K | Dover, OH: Amazing must see for the price! Gorgeous 1885 Victorian Heritage Home, 5-6BD/3.5BA, 3736 sqft on a spacious corner lot. Features include 10-ft ceilings, grand spiral staircase, hardwood floors, two master suites, finished attic, and private courtyard with hot tub. Currently a successful vacation rental with option to purchase fully furnished. Ideal for STR or historic home enthusiasts! View Post

⛳ $1.39M | Galena, IL: Stunning 5-acre estate overlooking The General Golf Course in The Galena Territory. Incredible rental history and loaded with upgrades. Ideal for investors or those seeking a serene retreat. Amazing STR potential! View on Vrbo for full details. View Post

🌴 $1.2M | Jupiter, FL: Two unique off-market STR homes in a gated community on a barrier island! Lagoon views, short walk to the ocean, and HOA amenities include marina access for boats up to 48' with a quick Gulf Stream route. Includes a 4BD/3BA and a 3BD/3BA—rare STR-approved large homes in this area. Perfect investment opportunity! DM for details. View Post

🚤 $242K | Iuka, MS: Charming 2BD/2BA, 1200 sqft retreat on 1 acre near Pickwick Lake! Perfect for adventure lovers, with a boat ramp 1/4 mile away and 3 marinas nearby. Expansive lot for boats, RVs, and ATVs. Ideal for a weekend getaway or investment. View Post

🌄 $899.9K | Sevierville, TN: Luxury 2BD/2BA cabin + bunk room on 0.7 acres with stunning mountain views! "Lil Cabin in the Cove" is a top-performing STR grossing $90K+ annually. Sleeps 10, with spacious game room, multiple outdoor spaces, hot tub, fire pit, and a deck overlooking a spring-fed pond. Custom-built in 2022, fully furnished with high-end finishes—perfect turnkey investment. Future bookings through 2025! View Post

🏡 $274.9K | Birmingham, AL: Charming 1935 Craftsman bungalow + income-producing guesthouse on a corner lot near Ruffner Park! Main house: 4BD/3BA with marble fireplace, updated kitchen, and bonus room. Guesthouse: 2BD, full kitchen, laundry, Jack-and-Jill bath. Recent updates include wiring, plumbing, and HVAC. Proven rental history—ideal for homeowners or investors! View Post

🏙️ Starting at $999K | Nashville, TN: Luxury 4BD/3.5BA, 2600 sqft in Berry Hill. STR-eligible HPR with high-end finishes, near 8th Ave & Melrose. Features an 800+ sqft rooftop deck with skyline views and options for a 2- or rare 3-car garage. Perfect for investors or homebuyers! View Post

🌄 $1.65M | Mineral Bluff, GA: Top-performing 4BD/4.5BA luxury cabin grossing $235K+ in 2024! Built in 2022 on 1.84 acres, this turnkey STR gem boasts en-suite BDs with private decks, stone fireplaces, game room, wet bar, and a stone patio leading to an intimate pool area with firepit. Expansive outdoor party porch with kitchen, grill, pizza oven, and more. #1 grossing 4BD in Mineral Bluff! View Post

🏞️ $575K | Gatlinburg, TN: Cozy 1BD/2BA cabin with large loft (used as 2nd BD/game room), just 1.5 miles from Parkway and 3 miles to downtown! Strong rental history with $74K+ gross in 2023, projected $71K potential. Ideal location for STR or personal retreat. View Post

🏖️ $849K | Panama City Beach, FL: 4BD/5BA, 2324 sqft beach retreat, 1.5 blocks to shore in Laguna Beach! Fully furnished, STR-ready with garage, bikes, and beach toys. Spacious open plan, high ceilings, and Gulf-view balcony. Perfect for families or rentals. Private fenced yard with patio, grill, and covered porch. Huge price drop—act now! View Post

🏖️ $629.9K | Norfolk, VA: 7 new 4BD/3.5BA single-family homes in East Ocean View, 2500 sqft, just steps from Chesapeake Bay beaches! Each home features 2 suites, 2-car garage, vinyl privacy fence, and NO HOA. Move-in ready for the holidays! View Post

🏡 $450K | St. Louis, MO: Renovated 3BD/3BA, 2144 sqft home near Dogtown and Forest Park. Features 10-ft ceilings, quartz countertops, bonus room, fenced yard, and new roof. STR earns $70K/year, garage ADU potential. Furnished option available! View Post

🏔️ $497K | Whitefish, MT: 2BD/2BA condo, 897 sqft near Whitefish Mountain Ski Resort. Steps to hot tub, indoor/outdoor pools, and private beach on Whitefish Lake. Fireplace, wildlife views, and no commission fees! View Post

🏡 $344.9K | Dry Ridge, KY: 4BD/3BA Cape Cod, turn-key STR or family home with all furnishings, decor, and supplies included! Features game room, pool, patio, and earns $6K+/mo. Great reviews! View Post

Navigating Today’s Real Estate Market: Using Inventory, DOM, and Absorption Rates to Make Smarter Investments

The real estate landscape is marked by unique challenges: rising interest rates, economic uncertainty, and fluctuating property values across many regions. For investors and buyers alike, the ability to interpret real estate metrics—particularly sale inventory trends, days on market (DOM), and absorption rates—can provide a critical edge in a shifting market.

Understanding and leveraging these indicators can make the difference between you securing a profitable deal and risking overpaying in an uncertain market.

Why Real Estate Property Metrics Matter More Than Ever

This year, economic pressures, such as increased borrowing costs and inflation, have made buyers more cautious. For sellers, rising inventory means increased competition. Now more than ever, data-driven insights can help investors understand underlying market dynamics. The key metrics to consider are:

1. Sale Inventory Trends – Measuring the available supply of homes in a given area.

2. Days on Market (DOM) – Gauging the demand by assessing how long listings remain unsold.

3. Absorption Rate – Calculating the rate at which homes are sold in a particular area, providing a snapshot of market balance.

Each of these metrics can offer invaluable insight, guiding investors on when to buy, what to pay, and how to strategize in an unpredictable environment.

1. Sale Inventory Trends: A Key Supply Indicator

Why Inventory Levels Matter

Inventory levels measure the total number of homes available for sale in a market. When inventory is high, there is a greater supply of homes, often giving buyers more leverage. Conversely, low inventory levels create competition among buyers, potentially driving prices up.

Current Trend: Rising Inventory in Many Markets

Rising interest rates have tempered buyer enthusiasm, leading to an increase in unsold inventory in many regions. As properties remain on the market longer, this rise in available listings creates more options for buyers, offering a unique opportunity to negotiate lower prices or added benefits such as seller concessions.

Using Inventory Trends to Guide Investment Decisions

For investors, inventory trends offer a macro view of market conditions:

• Buyers’ Market: When inventory is high, buyers have the upper hand, as sellers may need to price competitively.

• Sellers’ Market: Low inventory favors sellers, as scarcity can drive up home prices.

Tracking inventory allows investors to time their purchases strategically, potentially buying during inventory spikes when sellers are more motivated to negotiate.

2. Days on Market (DOM): The Demand Indicator in a Softening Market

Understanding DOM and Its Impact on Pricing

Days on Market (DOM) measures how long a property remains listed before being sold. This metric is crucial as it provides a clear snapshot of buyer demand. High DOM suggests a slower market, where buyers have more options, while low DOM indicates high demand.

Current Trend: Longer DOM in Response to Economic Conditions

In many regions, DOM has been increasing as higher mortgage rates make potential buyers cautious, leading to more selective purchasing behavior. Longer DOM can indicate overpriced listings or waning demand in a specific area, giving investors an opportunity to negotiate on price. For properties with exceptionally high DOM, sellers may be willing to reduce prices to close a deal quickly.

Leveraging DOM for Investment Success

Investors can use DOM data to target properties that are likely priced above the market value or those where sellers might be motivated to make concessions. By focusing on listings with higher DOM, buyers can:

• Identify Price-Reduction Opportunities: Properties sitting longer on the market may be candidates for price adjustments.

• Assess Market Trends by Location: DOM data can vary widely by region, so analyzing DOM by neighborhood or city can reveal micro-trends and specific investment opportunities.

3. Absorption Rate as a Leading Indicator of Market Balance

Why the Absorption Rate Matters

Absorption rate measures the speed at which homes in a particular market sell, typically calculated monthly. A high absorption rate suggests strong demand, while a low rate can indicate an oversupplied or sluggish market. The absorption rate is crucial for determining whether the market favors buyers or sellers and can serve as a forecast for short-term price changes.

Current Trend: Shifting Absorption Rates Reflecting Localized Demand

As economic uncertainties persist, absorption rates have varied by region. While some high-demand markets still maintain rapid absorption rates, others are cooling off as more properties sit unsold. Investors can use the absorption rate to gauge the immediate competitiveness of a market:

• Balanced Market: An absorption rate between 15-20% often signals a balanced market.

• Buyer’s Market: Below 15%, indicating less buyer activity and potential for price negotiation.

• Seller’s Market: Above 20%, often suggesting upward pressure on prices due to high demand.

For a deeper dive on the power of absorption rate in shaping investment decisions, see this article on STRScout.

How Investors Can Use These Metrics for a Competitive Advantage

A Data-Driven Approach to Structuring Offers and Setting Prices

In today’s market, using real estate metrics isn’t just a bonus; it’s essential. Here’s how investors can apply these insights:

• Competitive Offer Structuring: Inventory and DOM data provide investors with leverage in negotiations, helping them make offers that reflect current market demand.

• Price Adjustments for Sellers: Sellers can use these metrics to set realistic prices, potentially reducing time on the market and attracting serious buyers.

• Timing Purchases: Monitoring trends in inventory and absorption rates can help investors time their entry to the market, ensuring they buy when conditions are favorable.

For Buyers: Leveraging Real-Time Data to “Make Money When You Buy”

An old real estate adage says, “You make money when you buy, not when you sell.” For buyers, data-backed decisions mean:

• Identifying Undervalued Properties: Higher DOM and rising inventory can point to properties priced above market value, opening up room for negotiations.

• Gaining Leverage in Negotiations: By referencing real-time metrics, buyers can justify lower offers based on market demand and supply conditions.

Conclusion: Staying Ahead in a Shifting Market

Navigating the real estate market today requires more than intuition. Rising interest rates, fluctuating inventory, and varying demand levels make it critical for investors and buyers to stay informed. By focusing on sale inventory trends, DOM, and absorption rates, investors can make data-driven decisions that align with current market conditions, ensuring they maximize their chances for a profitable investment.

As the market continues to evolve, staying informed and adaptable will be essential for sustained success. That’s why we’re refining our beta app, Spatial Hub—created by investors, for investors—to help you make these data-driven decisions with ease. Stay tuned to STRScout.com for updates on its upcoming launch!

Housing

🏠 Housing Market Inventory Reaches Highest Level Since 2019 

Inventory in the U.S. housing market has hit its highest point since 2019, with listings up 29.2% year-over-year, especially in Austin, Memphis, and Orlando. This increase gives buyers more options, though competition may rise if mortgage rates drop further. Read more

🏡 Rent Growth Slows as Rental Demand Eases 

Apartment rent growth is slowing, with demand easing across most U.S. cities. Renters, especially in large metro areas, now have more negotiating power as vacancy rates tick upward, a shift that could reshape urban rental markets. Read more

Short-Term Rentals

🏘 Court to Decide Short-Term Rental Rules in Michigan 

A court decision on short-term rental restrictions in Michigan’s Park Township could reshape policies across tourism-dependent communities statewide. Local actions in Muskegon and Saugatuck, like capping rental numbers, highlight an ongoing debate on balancing tourism with neighborhood concerns. Read more

🏡 Austin Enforces Short-Term Rental Permits 

Austin has ramped up enforcement on unlicensed short-term rentals, issuing over 100 citations in recent months. The city’s action aims to manage rental market pressures, with property owners facing increased compliance requirements. Read more

Airbnb

🏠 Airbnb Launches Co-Host Directory for New Hosts 

Airbnb’s Co-Host Network now helps new hosts connect with experienced hosts for operational support and best practices, aimed at improving service quality across the platform. This initiative provides a valuable resource for first-time hosts in competitive rental markets. Read more

🏢 Airbnb Financials Show Strong Q3 Performance 

Airbnb’s Q3 financial report shows solid growth, with an 18% year-over-year increase in revenue. Rising demand for experiences and premium stays contributed to gains, underscoring Airbnb’s robust recovery and increasing value for investors. Read more

Mortgage Delinquency Rates

🏠 Mortgage Delinquencies Rise Amid Economic Pressures 

Recent data shows a 14.5% uptick in mortgage delinquencies, reaching a six-month high in response to inflation and high interest rates that strain borrowers. Elevated costs for homeowners insurance and property taxes compound these financial pressures, especially in high-cost areas. Read more

🏡 Rising Insurance and Property Taxes Elevate Delinquency Risks 

Increasing property taxes and insurance premiums are cited as major risk factors for mortgage delinquencies, particularly in states like Texas and California, where costs are climbing rapidly. This trend could impact default rates for homeowners struggling with affordability. Read more

Economy

🏢 Next U.S. President Inherits a Strong Economy Amid Public Skepticism 

The U.S. economy is showing robust growth, though public sentiment remains low with 62% rating it poorly due to inflation impacts. Gains in productivity, AI, and renewable energy investments are predicted to support continued growth in the coming years. Read more

🏠 Housing Costs Are Impacting Economic Growth 

Housing costs continue to drive inflation, curbing overall economic growth. Despite strong job markets and consumer spending, high housing prices make homeownership less accessible, potentially influencing future policy decisions. Read more

🏢 U.S. Employers Add Just 12K Jobs in October, Lowest Since 2020

U.S. nonfarm payrolls increased by only 12,000 jobs in October, the smallest gain since December 2020 and well below the forecast of 100,000 jobs. This weak growth reflects impacts from recent hurricanes and a major strike by Boeing employees, though the unemployment rate held steady at 4.1%. The modest job numbers may influence the Federal Reserve's expected quarter-point rate cut aimed at supporting growth amid easing inflation. Read more

Macro Market Minute: September’s Top 10 Price Cut Hotspots | Inventory Trends

In September 2024, several major U.S. metropolitan areas showed significant increases in the percentage of home listings with price reductions, often accompanied by notable inventory growth:

• Miami, FL: 26.2% of listings had price reductions, up 3.5 percentage points from last year, with a 15% rise in inventory.

• San Francisco, CA: 27.4% of listings saw price cuts, up 1.2 points, alongside a 12% inventory increase.

• Austin, TX: 25% of listings experienced price reductions, up 8.8 points, with inventory surging by 20%.

• Phoenix, AZ: 25% of listings had price cuts, up 1.4 points, accompanied by a 10% increase in inventory.

• Denver, CO: 25.2% of listings saw reductions, up 1.6 points, with inventory growing by 18%.

• Virginia Beach, VA: 25.9% experienced price cuts, up 4.7 points, with a 14% rise in inventory.

• Washington, DC: 25.9% of listings had reductions, down slightly by 0.2 points, with inventory up by 9%.

• Minneapolis, MN: 26.4% saw price cuts, up 0.4 points, with a 13% increase in inventory.

• Riverside, CA: 28.1% had price reductions, up 0.6 points, with inventory up by 11%.

• San Jose, CA: 28.2% of listings saw price cuts, up 0.4 points, with a 10% inventory increase.

These trends reveal a cooling in key housing markets, with sellers adjusting prices and inventory levels to attract buyers, creating potential opportunities for real estate investors.