By J. Graber | Daily Independent
The high inflation and whispers of a coming recession that are part of life in 2023 has not translated into the “Airbnbust” for the short-term rental market that some are worried about here in the Valley.
Dynamics have shifted with the economic uncertainty but short-term rental demand is strong across the county, according to a report issued by AirDNA, a website that specializes in researching the short-term rental market.
“We expected that consumers would prioritize travel despite the economic climate, and a closer examination of recent demand and pacing trends has given us confidence that this is exactly the case,” the report stated.
“Instead of canceling plans, travelers have been hunting for value, and the (short-term rental) market has been able to provide this through an unparalleled mix of offerings.”
A viral tweet by Nick Gerli, CEO of Reventure, a website dedicated to researching the housing market, predicts a huge collapse of the short-term rental market in the second half of 2023 accompanied by a massive sell off.
The tweet claims revenue for short-term rentals in the Valley was down 47.2% in May of this year from May 2022.
“Ground zero for this Airbnb collapse is a city like Phoenix, where the number of short-term rentals (18k) is more than double the number of for sale listings (8k). Mix the huge Airbnb supply with revenues down — 50% and you get a cocktail for massive forced selling,” Gerli posted.
Gerli did not respond to a request for an interview, but cites a website called “All the Rooms” as the source of his information.
