logo
episode-header-image
May 2023
5m 56s

Short Term Rental Economics

Victor Menasce
About this episode

On today’s show we are looking at short term rentals to see what market conditions are best suited to this product type. 

In addition, some critics are zeroing in on a legal gray zone in the world of residential tenancies, short term rentals, hotel stays, and medium term rentals. 

The world of short term rentals has been suffering a growth in supply and a fall in occupancy in some major metros. Phoenix and Las Vegas are among those cities that have suffered the most.  

But any market follows the laws of supply and demand. The bright spots are those cities where constraints on supply are being imposed through regulation. Without constraints on supply, the sharing economy will continue to attract new entrants until the revenue falls to a level of tolerable pain and nobody is making any money. The classic example is that there is no constraint on adding another vehicle to the fleet of Uber drivers. Supply can grow unconstrained. 

----------

Host: Victor Menasce

email: podcast@victorjm.com

Up next
Yesterday
Jackson Hole Symposium - The downside of fertility
Every year the Kansas City Fed hosts the Jackson Hole symposium. All eyes are on the opening speech from Jerome Powell which was widely covered by the news media. To me, the more interesting talks are the invited speakers who give talks on various elements of the economy. The the ... Show More
6m 56s
Aug 25
The Anchorage Rental Market
On today's show I'm coming to you live from Anchorage Alaska. Based on the most recent data available, the rental vacancy rate in the Municipality of Anchorage was 4.6% in 2024. This indicates a relatively tight rental market, although it's a slight increase from some of the hist ... Show More
4m 21s
Aug 24
Avoiding Investment Scams with Dave Shirkey
Dave Shirkey is based in Michigan where today he specializes in mobile home park investing. On today's show we are talking about the darker side of investing which sometimes attracts bad actors. We're discussing how to avoid the possibility of being lured into a scam.To connect w ... Show More
12m 42s
Recommended Episodes
Mar 2024
1246 - #Airbnbust One Year Later: Did the Short-Term Rental Industry Ever Collapse? By Lindsay Frankel
At the beginning of 2023, we reported on the advent of #Airbnbust, a term coined by Amy Nixon and amplified by vacation property operators on social media to describe falling revenues per host due to a rapid increase in the supply of rental homes. Last July, we also dug into conf ... Show More
17m 6s
Feb 2022
576: Short-Term Rental Roundup: Small Markets, Partnerships, & When to Go “All In” | Q&A w/Rob Abasolo
The short-term rental market seems to get bigger and bigger every day. This should come as no surprise, seeing that short-term rentals not only work for vacationers, traveling business people, or anyone else who wants a nice, unique place to stay. But, while the rest of the world ... Show More
1h 9m
Aug 2023
1050 - How to Invest in Medium-Term Rentals by Anthony Greer
Medium-term rentals are more profitable than long-term rentals and less stressful than their short-term counterparts. While they used to be mainly for traveling nurses and business professionals, they’ve become more popular than ever due to the rise in digital nomadism and the st ... Show More
16 m
Oct 2021
Special Episode: Highs—and Lows—in U.S. Housing
Affordability pressures continue to mount as housing supply tightens. How long will home prices continue setting records and what could it mean for credit availability? ----- Transcript -----James Egan Welcome to Thoughts on the Market. I'm James Egan, Co-Head of U.S. Securitized ... Show More
8m 39s
Jun 2023
775: BiggerNews: Rent Unaffordability Crosses Dangerous New Threshold w/Lu Chen and Thomas LaSalvia
Rent prices have steadily risen for as long as we can remember. But, few of us would have ever expected the unimaginable rent hikes of 2020-2022. With major metros seeing double-digit year-over-year rent percentage bumps, residents were forced to throw a larger chunk of their inc ... Show More
55m 56s
Jan 2023
The "Big Shift" That's Finally Causing Rents to Fall
Rent inflation went wild in 2021 and 2022, turning it into one of the most substantial drivers of overall inflation. But good news: it seems pretty clear that rents are now finally falling. Private sector measures, from companies like Apartment List and Zillow are starting to sho ... Show More
41m 34s
Jun 2024
1353 - Headlines: CA Law is a game changer for rentals and Will rents increase over the next few years? By Matt Myre
  In our first sotry today, California ADU laws have been softening for several years in an effort to increase housing space and availability. ADUs are often used as rentals, which can help alleviate some of the pressure on rental supply. However, what it doesn’t do, is increase ... Show More
17m 24s
Jun 2024
975: BiggerNews: Rent Price Updates and Why Landlords Are Optimistic About 2024 w/Zumper’s Anthemos Georgiades
The rental market could finally be returning to stability after a wild past four years. Since 2020, we’ve seen rent prices skyrocket almost overnight, with huge asking price increases for single-family homes, multifamily apartments, and everything in between. But that trend quick ... Show More
48m 6s
Mar 2024
1243 - Investors Are Abandoning Their Short-Term Rentals and Converting Them Mid-Term Rentals—Here’s Why by Atticus LeBlanc
In the ever-changing landscape of the sharing economy, the concept of home sharing has undergone significant transformations. With the rise of short-term rental platforms like Airbnb, travelers and hosts alike embraced the idea of unique, short-term stays. However, the question t ... Show More
16m 36s
Aug 2023
1023 - Rents Exceed Housing Payments In Just Four Cities: Are The Days Of Cash Flow Over? by Lindsay Frankel
Detroit, Philadelphia, Cleveland, and Houston. Those are the only four remaining cities where it costs less to buy a typical home than to rent, according to a new report from Redfin. The analysis compared March home values and rental estimates assuming a 5% downpayment and a 6.5% ... Show More
10m 31s