City crackdowns are escalating—Houston just passed sweeping new STR rules, joining a global wave of regulation from New York to Ireland. At the same time, Zillow is flashing warning signs on home prices, and Palm Springs saw Airbnb demand spike 267% during Coachella weekend.

Inside this edition:

• 📉 Zillow predicts price corrections nationwide—bull run over?

• 🏠 Houston's new STR ordinance reshapes investor playbooks

• 🌲 California’s luxe treehouse tops Airbnb’s wish list

• 💸 Builders slash prices in Florida—$100K cuts signal a cooling market

• 🧱 Trump’s tariff talk could send homebuilding costs soaring

• 📈 Weekly housing and economic calendar shows mixed signals

Let’s dive in 👇

— The STR Scout Team

🏙️ $325K | Indianapolis, IN: Turnkey 3BD/2BA STR in Fountain Square. Fully furnished, remodeled in 2021, $27K revenue in 2024. Great reviews, walkable to nightlife, 2-car parking. High potential! View Post.

🌊 $419K | Galveston, TX: 3BD/3BA 1478 sqft condo w/ 3 balconies & stunning Gulf views. Fully furnished, no STR restrictions, pet friendly. 3rd row from beach, updated kitchen, covered parking. View Post.

🏡 $425K | St. Louis, MO: Fully renovated 4BD/3BA Dogtown gem, 2001 sqft w/ modern upgrades & historic charm. STR brings in $75K+/yr. Main floor suite, gourmet kitchen, fenced yard. Furnishings optional. View Post.

🏰 $494K | Davenport, FL: Price drop! 5BD/4.5BA Castaway end unit in Windsor Island Resort. Turnkey, pro-furnished, private splash pool, resort amenities, near Disney. High rental potential. View Post.

🌄 $525K | Prescott, AZ: Rare dual-home STR or multi-gen setup! Two charming units (2BD & 1BD) w/ private yards, updated interiors, W/D in each. Walkable historic neighborhood, strong income potential. View Post.

🌊 $749K | Dennis, MA: Cape Cod STR gem! Two 2BD cottages + bonus lot, deeded water access, beach rights, parking for 8. One unit furnished. STR-ready, recent upgrades. Open house Sat 11–12:30. View Post.

🌅 $799.9K | Gulf Shores, AL: Turnkey 4BD/3.5BA beach house in Fort Morgan, no flood insurance required! Fully furnished, $95K gross in 2024, 2 master suites, decks, golf cart incl. Pool/hot tub access. View Post.

🌲 $874.5K | Pigeon Forge, TN: 3BD/3BA + loft, 2800+ sqft on 4.5 acres with mountain views. Room to build 2nd cabin. $88K in '23, $91K in '24, $60K booked for '25. Major upgrades done. Selling to fund biz expansion. View Post.

🌴 $2.495M | St. John, VI: Villa Agel—6BD/6BA, 7343 sqft luxury pool villa w/ 180° Coral Bay views. STR w/ 80+ 10/10 reviews, solar power, separate apt, deeded beach access. Stunning craftsmanship. View Post.

🏝️ $5.495M | Austin, TX: One-of-a-kind 15BD/13BA STR compound in walkable Bouldin. Six luxe structures, resort-style pool, $1M+ revenue potential. Book as whole or in parts. Endless income upside. View Post.

📰 News Nuggets | Trending Headlines

Skim fresh, real-time headlines shaping Airbnb, housing, and STR investing—stay current, catch the signals, and understand what’s driving the market.

🏠 New rules for short-term rentals are coming to Houston as the city council passed an ordinance requiring STR operators to register properties, pay hotel occupancy taxes, and adhere to safety regulations. The move aims to balance neighborhood concerns while allowing legitimate STR businesses to continue operating in designated areas.

🇮🇪 Airbnb faces potential multimillion-euro fines in Ireland under tough new rules targeting illegal lettings. The legislation requires hosts to register with local authorities and limits short-term rentals in high-demand areas, as officials crack down on properties that should be in the long-term housing market.

🌲 California's most wish-listed Airbnb is a stunning treehouse in Occidental, Sonoma County. This unique property features floor-to-ceiling windows, a wraparound deck, and breathtaking forest views, demonstrating how exceptional design and immersive experiences continue to capture travelers' imaginations and premium rates.

🎡 Coachella music festival has driven a massive spike in Airbnb searches for the Palm Springs area, with a 267% increase compared to typical periods. The surge highlights how major events continue to create lucrative opportunities for STR owners who position their properties to capture high-demand weekends.

💻 Airbnb announced its 2025 Preferred Software Partners, recognizing top property management systems that help hosts optimize operations. The program includes partners specializing in pricing, guest communication, and operational efficiency, underscoring the growing importance of tech solutions in professional STR management.

📊 Airbnb will announce its first-quarter 2025 financial results on May 8, with CEO Brian Chesky and CFO Ellie Mertz hosting the earnings call. Investors are watching closely to see if the platform can maintain momentum following recent market fluctuations.

🏈 Hotels and short-term rentals are still available just one week ahead of the NFL Draft in Detroit, contrary to expectations of complete sellouts. This suggests property owners may have overestimated demand or overpriced accommodations, providing a cautionary lesson about realistic pricing during major events.

🏘️ Florida's housing market teeters on the brink as multiple factors converge, including rising interest rates, insurance costs, and property taxes. Real estate experts warn investors about diminishing returns and potential market corrections, particularly in previously hot regions now showing signs of cooling.

🔨 Major homebuilders are slashing prices in Florida by up to $100,000 amid cooling demand. These significant reductions from builders like Lennar and DR Horton signal a major shift in what was recently one of America's hottest housing markets.

🧱 Trump's tariff plans could add thousands to homebuilding costs, with proposed 10-20% tariffs on Canadian lumber and other building materials. Industry analysts predict these policies would further complicate housing affordability challenges and potentially slow new construction activity.

📉 Zillow has turned full bearish on housing, predicting significant price corrections across multiple markets. Their revised forecast suggests inventory increases and buyer hesitation will drive the first substantial nationwide price drops since the pandemic boom.

💰 Setting the right price remains critical for sellers in today's shifting market. Experts recommend analyzing comps, understanding buyer psychology, and being realistic about local conditions rather than clinging to pandemic-era appreciation expectations.

📊 Housing market crash fears may be overblown according to recent data showing continued inventory shortages and demographic demand. While price growth is moderating, fundamentals indicate a correction rather than collapse, with today's market showing key differences from the 2008 crisis.

🏢 Zillow stands against private real estate listings, announcing it will not publish properties not available on local Multiple Listing Services. The move aims to increase market transparency and prevent the growing trend of "pocket listings" that can disadvantage certain buyer groups.

💳 Household debt crisis looms as consumers increasingly struggle with credit card balances and auto loans. Financial analysts warn that high interest rates and inflation are stretching budgets to breaking points, potentially triggering a wave of defaults affecting broader economic stability.

🏠 Mortgage delinquencies are increasing nationally, with Tampa Bay seeing concerning rises in late payments. This trend reverses years of strong performance and signals potential distress in markets where homeowners face insurance hikes and rising living costs.

📝 The average credit score has dropped for the first time in years, driven largely by student loan delinquencies following the resumption of payments. This decline could impact borrowers' ability to finance real estate purchases, potentially cooling demand in certain market segments.

✈️ United Airlines reports sustained premium travel demand despite economic headwinds, with business and luxury segments outperforming expectations. This resilience in high-end travel suggests opportunities remain strong for luxury STR properties catering to affluent travelers.

🌎 US tourism is plummeting from multiple key international markets including Canada, Mexico, Germany, UK, and France. Industry analysts cite visa processing delays, perception issues, and strengthening dollar as contributors to this concerning trend for hospitality providers.

📊 The most splendid housing bubbles in America are showing mixed signals, with price drops in some major markets while others maintain gains. This patchwork performance suggests regional factors are increasingly determining outcomes, requiring investors to adopt highly localized strategies.

📊 Market Watch

Housing and Econonic calendar report for the week of April 14-18, 2025.

Markets showed resilience this week despite ongoing inflationary pressures and cautious consumer sentiment. A slight uptick in housing starts and steady permits offered some optimism, while jobless claims edged up. Labor market strength and stable mortgage rates continue to anchor housing demand.

📉 “We are in a world where higher rates may be the new normal.”
— Mary Daly, President of the San Francisco Fed

🏡 Housing Market Reports

📅 Economic Calendar

🔍 Key Takeaways:

• Rates Hold Steady: Mortgage rates ticked up slightly but remain stable, aiding affordability in a tight housing market.

• Builder Sentiment Rebounds: The HMI rose to 42, suggesting cautious optimism despite ongoing supply chain and demand headwinds.

• Labor Market Resilient: ADP payrolls exceeded expectations, reinforcing a still-solid employment backdrop.

• Manufacturing Weakness: The ISM Manufacturing PMI slipped back below 50, indicating mild contraction.

• Inventory Growth Slows: Housing inventory continues to rise, albeit at a slower pace than prior weeks.

📌 Market Outlook

With interest rates settling into a higher range and economic indicators showing mixed signals, the market may remain range-bound in the near term. Watch for upcoming inflation and wage data to gauge the Fed's next move.

🧾 Key Source Links:

• Mortgage Rates – Freddie Mac PMMS

• Housing Data – U.S. Census Bureau

• HMI – NAHB

• ADP Jobs Report

• BLS – Nonfarm Payrolls & Unemployment

• Consumer Sentiment – U. of Michigan

PS - Did you like today’s content? Have ideas on what to publish next? Tap the poll below to let us know how we are doing or respond to this email. I read every response. Thanks 😀