Short-term rentals are a maturing niche asset class within the multifamily sector. Though it is still considered to be a new trend, the short-term rental industry is thriving with an annual revenue of nearly $18 billion in 2018 and a forecasted rise to $23 billion by 2022. Recently, multifamily owners have begun to embrace the short-term rental model that has been created by Airbnb. And with increasing investor interest in multifamily niches and a rising demand for short-term rentals throughout the nation, this type of rental could potentially be the “next big thing” in multifamily. As such, there has recently been a lot of buzz within the commercial real estate industry surrounding this topic.
We searched the Internet for January’s top blogs and articles about the emerging short-term rental trend and then narrowed it down to our top 4. Read ahead to discover our top picks!
Written by Unknow Author, CBRE
Once dismissed as a relatively inconsequential niche product and a distant cousin to traditional hotels, short-term rentals are becoming a widely accepted alternative for nightly accommodations. Short-term rental supply is anticipated to grow in 2020 with the addition of more than 100,000 net new units. With this expansion, hotel owners, operators, and industry professionals must more heavily consider the undeniable change that is underway for lodging. This report analyzes the growth of this emerging sector and its impact on the performance of both new and existing hotels in today’s hospitality sector.
Written by Amber Felton, RealPage IMS
This article discusses the emergence of short-term rentals nationwide and how this niche asset class is increasingly gaining interest amongst multifamily owners and investors. It also explores how several factors, including changes in traveler’s lodging expectations and an increasing number of yearly business-related travels, have prepped the U.S. market for an influx of short-term rentals. Lastly, learn how the demand for short-term rentals is impacting the multifamily sector by reducing vacancies, diversifying revenue streams, and increasing apartment demand.
Written by Lisa Brown, GlobeSt.
The emergence of companies like Airbnb has changed the travel industry forever. Short-term rentals (STR) are currently leading the pack in the nation’s “sharing economy”. Because of shifts in the economy and the growing popularity of nontraditional lodging, many cities have begun to enforce STR laws that regulate when, how, and where this type of rentals are acceptable. This blog identifies Austin, Las Vegas, New York City, and Santa Monica as four cities that have been impacted by STR regulations and discusses the lessons about short-term rentals that can be learned from these scenarios.
Written by Rebecca Lake, U.S. News & World Report
This article discusses the current and future growth in the short-term rental market. With this growth, the article details how investing in these rentals can present revenue-generating and portfolio-diversifying opportunities for investors. Additionally, some of the advantages, legalities, and expectations surrounding short-term rental investments are discussed.
Read The Hospitality Industry is Fighting Back Against the Short-Term Rental Disruptors for more on this emerging asset class.