Not as saturated as other markets. 

However, I also understand that lower housing cost may saturate the rental market. 

This is the investment thesis in my area, it is becoming a bit saturated, but if you can rent just below the new build/corporates, and maybe accept tenants that are a bit outside of the corporate approved model, you can keep your place rented. 

It is interesting how a lot of hosts here are continuously complaining about saturation and lower occupancy while refusing to adopt the new system.

They did, in fact, provide a money-back guarantee if it did not outperform the market in a one-mile radius, which in my case is a really well-performing area that is borderline saturated.

Is the market saturated?

The market is saturated with STR's further from the beach and attractions, so my advice is to be picky about your location and underwrite the numbers carefully to make sure the investment will be profitable. 

I guess my main concern with the Tulum area is it seems there are soooo many new developments going in (an agent told me 151 new developments over the next 4 or 5 years), I think the competition for vacation rentals will end up like Playa del Carmen (saturated and cut-throat with competition).

Texas is great but has become tough over the past couple of years due to market saturation.

So far, we’ve been looking at Ericeira, Azeitao, Sesimbra and downtown Lisbon but those areas are saturated and are expensive.