Hotel saturation has to be considered.

The allure of fat cash flow (at least on paper) and the low barrier of entry (down payment) never stop attracting new investors. 

The Packwood, WA market may be officially saturated on STR's. 

Yes Pittsburgh is a good choice for Investors who either live here or are remote as the buy-in is a lot more conducive than other more saturated markets.

So you not only have to increase production to get the price down there, but also increase production to out-grow OPECS reduction in production, because they will throttle production to keep there profit margin nice and fat. 

How do you identify emerging markets before they become over saturated?

Builders often adjust pricing based on rental saturation, which could impact future appreciation.

I think that overall the economy will go nuts, but I still think STRs are saturated, they just got too much attention back in 2019-2021.

I am not sure how saturated that market is (both with properties and managers) but the first question you should ask yourself is is the market underserved and how can you improve the current offerings to local owners? 

They sat on the sidelines seeing saturation pick up in 2018-2019 and decided to step out.