What's the STR forecast for 2023?

[Isan Sahoo]

Hello everyone,

As a prospective investor in short-term rental, I would like to get some feedback regarding the upcoming demand for short-term rental. Considering the current economic climate, where layoffs are happening every other day, and interest rates are going off the roof, is it a good time to invest in STR or wait for some time? Also, in this market, will people go on vacations and spend money on STR?

[Nathan Gesner]

Opinions are like . . . you know.

Just because someone has been killing it for the last five years doesn't mean they are experts. If you want to know what happens with short-term rentals during a recession, talk to people that have been through a recession, not people that have only invested in an ideal market. Anyone investing in the last ten years - myself included - have had it easy. Go find some investors that have been around for at least 20 years. You'll find they have a few scars and stories to share that don't match the rosy picture painted by new investors that have never experienced a down market.

I know a very respected Property Manager in Florida. She has a great business and is seen as a leader in the management community, even though she's only been in the business less than 10 years. She got hit by the hurricane and within one week she was literally begging someone to buy her business because she couldn't handle it. I saw the same thing in the military. There were young guys in peak physical condition that would melt like chocolate in Death Valley the minute bullets start to fly. It's easy to look like a pro when all the conditions are in your favor.