STR Buy/Sell Trends 2025

[Erica Calella]

For investors utilizing the STR strategy, what is your "gut feeling" for what the upcoming investment landscape will look like in 2025?

I recently spoke with an investor who believes STR sales in WNC are going to hit the market like crazy in spring of 2025. In her opinion, many investors are desperate to get out of their saturated markets but are waiting for interest rates to come down since many of them had purchased back in 2021-2022 at lower rates and higher prices. This makes sense, but what do we think will happen to these properties once sold? Will they likely be recycled into a new STR under new ownership? What are the other possibilities?

I'm thinking that this would also be a good time for me to add another property to my STR portfolio because I think prices will be more competitive once the transaction volume increases. My hesitation stems from the fact that I am unable to wrap my head around how this will affect the overall STR supply in vacation markets.