Vacation Rentals during economic downtrun

[Brandyn Kemp]

I am currently in the search for my first vacation rental. The question I have in my mind is what will happen to the occupancy rate and ADR if there is an economic downturn in the near future? Obviously it will drop off, but how drastic?

Does anyone have this experience in STR/ Vacation Rentals during the 2008-2013 years or sometime similar?

I guess I am trying to determine if rates the past couple years are high because the economy is high or if this is the norm. 

Thanks for any experience you may have!

[Jared Higginbotham]

This is an interesting topic. I think there will be some areas of the market in 08-13 that will translate to the next downturn... but I also believe that as a whole, the sharing economy is changing the way the next generation is living and investing. With the arrival of Airbnb, and other like platforms, people are finding it cheaper to travel. I wouldn't say this will make the industry bulletproof. But I do think it will make a downturn a little more tolerable.