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Updated about 2 years ago on . Most recent reply

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Easton Hill
  • Phoenix Arizona
69
Votes |
65
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Measuring Market Saturation?

Easton Hill
  • Phoenix Arizona
Posted

TLDR;  "How does a smart, data-driven investor, measure market saturation?"

- - - - - 

Gone are the days of just buying any property, furnishing it with crappy furniture, listing it with iPhone photos, and making a killing! 

I think we all know that STR&VR listings have increased year-over-year in almost every market and by large amounts in others! (my own market of Phoenix has seen an unprecedented increase of 20-25%)

So naturally, you see operators, owners, and managers saying things like "The market is saturated" 

My sincere questions are:

How do you know a market is saturated?

How do you measure saturation? 

What date supports your assertions?

How do you even define the word "saturation?" 

In a saturated market, what should an operator expect from ADR, Occupancy, and Pacing? 


When I hear talk about saturation, it's always "feelings" based rather than data-centric. 

I'm earnestly seeking to be the best real estate investor I can be and I'm certain that making "feelings" based choices will lead to bad investments. 

So I ask - "How does a smart, data-driven investor, measure market saturation?" 

Most Popular Reply

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John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
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12,304
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John Underwood
Pro Member
#1 Short-Term & Vacation Rental Discussions Contributor
  • Investor
  • Greer, SC
Replied

Even if there is saturation  in your area you can still stand out by having a great property in a great area with great amenities and great views. 

You do this and you will still be a sought after property and repeat guests will come back year after year.

So buy right to start with!

  • John Underwood
  • Loading replies...