What metrics/calculations do you use to determine if a market is oversaturated?

[Paul Wolfson]

I'm a numbers person and want my decisions to be guided by data over anecdotes.

With that said, how do you calculate if a market is oversaturated? 

I've seen one interesting approach recently where you can use AirDNA to get the 1-year growth in STR listings and compare that to the 1-year growth in STR revenue. If the amount of listings grew by 25% and the revenue in that market also grew by 25%, then that means supply is meeting demand, which in turn means that market is not oversaturated. However, that is a snapshot of only 1 year. And, it is a "rate of change" type of metric.

I'm wondering if there are other metrics people use to determine market saturation?