AirBnB stock price collapsed by 14%. AirBnB stock is down by almost 25% since their IPO, initial public offering.
Revenue and guest numbers on the decline.
Some Airbnb operators losing money. Some forced to sell their properties, often at a loss.
Examples:
In Florida, a growing amount of new listings from Airbnb owners.
According to a JULY 11, 2024 Philadelphia Inquirer article, the President of the Brigantine Chamber of Commerce recommends converting (STR) short-terms rentals into long term rentals, or sell the struggling STR, sooner than later.
Amy Rosenberg of Philadelphia Inquirer: According to Brigantine Realtor Maria Sacco Handle, rental bookings are 60 percent off this summer in Brigantine.
Handle is President of Brigantine Business Chamber, a Planning Board member, and a real estate agent in Brigantine. Maria Sacco Handle also manages client’s short-term rentals.
Full story here:
https://www.inquirer.com/newsletters/shore/jersey-shore-rentals-boardwalk-20240711.html
Handle recommends reducing minimum stays and lowering rental prices. Lease to year-round tenants. Consider selling now before end of summer.
“Given the sluggish rental market contrasted with a thriving sales market, it may be worth considering selling your property,” Handle wrote in the email to the owners of the rentals she manages.
When AirBnBs come into a residential neighborhood, they can quickly change the character of the area. Imagine you buy a new home and then, right next door, someone starts operating their home as an AirBnB. A motel right next to you $2 million beach block home.
AirBnBs, often in a single family residential neighborhood, can change a neighborhood’s character for the worst.
Many short-term rentals now more expensive than a hotel. Desperate landlords allow poor vetting of guests. Too much supply and lower demand.
According to Ventnor Commissioner Lance Landgraf, short-term rentals are commercial businesses operating in a residential neighborhood.
STR’s can artificially inflate home values. Some are improperly insured and financed.
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Sounds like the market is correcting itself. Over the years the venture capital funds helped discount things like Uber, Airbnb, Vrbo, GrubHub, Blue Apron, etc. However, those discounts are gone and the real price makes them less desirable. I think there are far too many Airbnb-like places and many places are not maintained or have more fees. You have to contrast that with hotels/resorts that have similar pricing and more amenities.
P.S.
The economy is another piece of the puzzle to this downtrend.
Over-saturated market.
There are some nice ones out there.
Then there are more that are not as nice.
Economy will tank in September or January.