Part 8/11:
The pandemic's impact exacerbated this trend. In January 2021, active vacation rental listings numbered about 133,000; by September 2023, vacancies soared past 245,000. The rise in vacancies signals oversupply and a difficult market for short-term rental income.
Furthermore, operating such rentals demands constant management—handling bookings, cleanings, guest issues—which many rookies underestimated. High interest rates, inflated property prices, and rising HOA and assessment costs have all strangled profit margins.
What Are Homeowners and Investors to Do?
For property owners in these struggles, options are limited. They can choose to sell—though at potentially significant discounts—or hold on and hope for market recovery, much like the 2008 financial crisis aftermath.