During the downturn, many manufacturers will go out of business, and the lack of supply will put prices up further.  

This has left a continuously widening market gap between supply and demand.

I bought them on a barrier island where there is demand and very little supply,  Their job is to appreciate.  

It was not a systemic failure but some one-offs.While it was difficult to predict rates would jump that high that quickly, but let’s look at two factors that impact inflationMoney supply and product1.

In NYC, you would had been charged around $100-$150 plus supplies depending on where, gas, tolls, parking (yes this is a thing in NYC) for both.

if unit A rents for $1.2k but piti is $3k, you are covering $1.8k of piti, $400/unit maintenance/cap ex, 5% vacancy, 8-10% PM, various misc costs (umbrella policy, bookkeeping, office supplies, etc).  

Even if demand isn't outrageous, supply is so low...

Yes, we can all agree there’s historic vacation communities where STRs have an informal historic precedent or maintain a supply/demand advantage that makes regulation unattractive to local municipalities, but there’s plenty of others where the investors have overbought, managed properties poorly, and are now part of a perception problem that’s driving bad legislation atop stupid headlines of irresponsible investors who think they’re operating in an ATM industry versus hospitality. 

pid=2061Houston Real Estate Highlights in February, 2024;-Single-family home sales rose 7.6 percent year-over-year, the third increase in the past year;-Days on Market (DOM) for single-family homes went from 64 to 57 days;-Total property sales rose 7.0 percent with 7,541 units sold;-Total dollar volume was up 11.8 percent to $2.9 billion;-The single-family median price rose 3.0 percent to $329,686;-The single-family average price rose 4.1 percent to $400,252; -Single-family home months of inventory registered a 3.4-months supply, up from 2.5 months a year earlier;-Townhome/condominium sales continue to decline, falling 8.1 percent, with the median price up 8.9 percent to $237,500 and the average price up 5.5 percent to $258,587.

Should this trend continue and/or become a reality, $1,200 may be seen as a "steal" in as little as 5-10 years as the demand continues/increases while the supply of those capable of doing the work continues to shrink.