and it will take a while for today’s historically low interest rates to feel anything other than painful.
than ever, although it did not directly address how much revenue those bookings were generating. Airbnb faces multiple complicating factors when it comes to generating predict- able returns in this sector. First, post-pandemic employer demands are sending many workers back to the physical office. This means less time for travel and less flexibility while doing so. Second, inflation is hitting every - one in the country, and that means the dollars to spend on vacations do not go as far. Further, as a property owner, your dollars will not go as far when it comes to maintenance and marketing of those properties. You must plan for your money to continue to be worth less, just as your guests must plan for the same. Finally, Airbnb competitors like Booking Holding and Expedia had great first quarter performances,
which means the short-term rental market and travel markets are becoming increasingly saturated and institutional players are beginning to jump in. This affects how much competition you will see for your rentals, regardless of what Airbnb CEO Brian Chesky says about it. Chesky continues to insist no competitor can touch Airbnb, but the company’s growth is slowing just as others are accelerating. 3. THE APARTMENT MARKET IS SHIFTING Although the market for apart- ments is still certainly competitive, you can see early signs of shifting conditions in previously white-hot cities like Las Vegas, Nevada; Riv- erside, California; Phoenix, Arizona; Austin, Texas; and San Francisco, California. According to data from
2. AIRBNB WON’T WIN THEM ALL
In the midst of the pandemic-era remote-work melee, it seemed like Airbnb investments and other short- term rental assets were essentially guaranteed wins for most investors. Now, that could be changing. Airbnb posted a near 50% decline in revenues according to data from AllTheRooms, with Phoenix, Arizona, and Austin, Texas, leading the pack for lost income despite an 18% increase in listings year over year. Interestingly, Airbnb pushed back on this report, stating simply that the data presented “is not consistent with our own data.” The company declared there are more bookings
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