Are short-term rentals dead?

They're not dead, but the easy money era is over. The market has matured and the margins have tightened, which means you have to be smarter about it now than you did in 2020 or 2021. What happened is that a flood of new hosts entered the market during and after COVID when short-term rental income was insane. Supply caught up with demand in a lot of markets, and now many hosts are competing for fewer bookings at lower nightly rates. Add in rising property prices, higher interest rates, increased insurance costs, and local regulations cracking down on STRs, and the math doesn't work as easily as it used to. That doesn't mean it's a bad investment. It means you have to pick the right market, the right property, and run the numbers conservatively. Markets with year-round tourism demand, limited hotel inventory, and STR-friendly regulations still perform well. Markets that are oversaturated with Airbnbs or have enacted strict STR ordinances are much harder to make work. Before you buy, research the local STR regulations in whatever market you're considering. Some cities have banned or heavily restricted short-term rentals. Others require expensive permits and limit the number of days you can rent per year. Run your projected income using actual comp data from AirDNA or Mashvisor, not from the host's claimed income or a best-case scenario. And always run a backup scenario where you convert to a long-term rental, because if the STR market softens further in your area, you need an exit strategy that still cash flows.

I would consult a local REALTOR to get te answer to this for the specifics of the area that you are looking to buy! Here on Lake Murray, SC I have 2 investors that are buying them and having great success! But there are areas, that have fallen under great restrictions and it depends on where they are located and the county or neighborhood rules.

Hello Carlos. It really depends on where you are hoping to purchase the STR. Many areas have regulations now and you need permits, etc. However, I personally own a STR and we are still doing well. I hope that helps! Best to you.