Is The Airbnb Era Over Or Poised For A Comeback?

If you’re one of the many homeowners who either decided to rent out your own residence or purchased property in order to list it on Airbnb or a similar platform, you’ve probably noticed a troubling trend in your revenue stream.

Hosts in virtually every market have seen income steadily dwindle as bookings continue to dry up.

Causes of the ‘Airbnbust’

To be sure, there are some property owners who still have lots of success finding short-term renters for their homes. For everyone else, there are a few common concerns that seem to have contributed to the current situation.

For starters, cities have taken vastly different approaches to the short-term rental craze. In some areas, regulators have limited the number of permits available, which reduces competition and puts hosts in a better position. In cities that have let the market become saturated, however, homeowners are seeing their revenue evaporate.

Additionally, COVID-19 took a huge toll on the rental market as people generally opted to stay at home. By 2021, there was a big surge in people anxious to travel … but now demand is back down even as the supply remains very high.

Finally, some renters have become disillusioned by the restrictions and expectations put on them when renting an Airbnb, specifically the chores that some hosts want them to do before checking out.

The times they are a-changin’

Many people referred to the heyday of Airbnb rentals as the Wild West when cash flowed freely and there were more than enough renters to go around. Those days appear to be over, but there’s no indication that the market is dying.

If anything, experts say these growing pains will likely make Airbnb and some of its competitors more resilient and ready to face the next chapter of the short-term rental saga.

Chris Agee March 23rd, 2023

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