Unveiling Airbnb Supply & Real Estate Trends

Unveiling Airbnb Supply & Real Estate Trends

Discover the key economic drivers shaping our supply forecast and STR performance in the ever-evolving real estate market. At the core of our analysis lie two crucial factors: mortgage rates and home values. We believe that when individuals contemplate buying or listing a property, they weigh the potential revenue against acquisition costs or the opportunity cost of holding onto the property rather than selling it. Higher revenue and lower acquisition costs inherently lead to increased supply.

Comparing our end-of-2022 predictions, we have observed a remarkable alignment of mortgage rates with expectations. However, the surge in rates has triggered a more rapid decline in home prices, fostering a slight surge in transactional activity. Moreover, another contributing factor to heightened supply growth, complemented by robust demand, is the inclination of existing homeowners to retain properties financed at historically low rates. Notably, anecdotal evidence suggests that properties which might have been sold in a low-interest rate and rising home value environment are now being leveraged as either short-term or long-term rentals. This strategic move allows owners to capitalize on the market’s stability in the future.

 

Considering these factors, Airdna has revised their supply forecast for listed nights in 2023, projecting a year-on-year increase of 14%, significantly surpassing the earlier estimate of 9%.

Stay informed and make informed decisions with our property management expertise. Contact us now to explore how our services can help you navigate the intricacies of STR supply and real estate trends, maximizing your investments while achieving unparalleled growth.

About Us: Shanti Mountain Properties is based in Asheville NC and has 14 years of experience accumulating over 6,000 reservations and 2,700 + reviews from our Airbnb properties. From our long standing property management experience we’re proud to have an excellent rating across all major platforms, a strong team, and a great relationships with Airbnb.Inc. We rely on our southern hospitality, customer service, longstanding property management history and with our newly constructed rustic/modern homes, tell us how we can be your property manager or host your stay in Western North Carolina!

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