AirBnB Bust? Local San Diego Evidence
I am not going to "reinvent" the wheel" here (i.e rewrite articles I've read). I keep seeing articles being written (which I will reference below for you to read) about the over saturation of AirBnB's in popular vacation cities. Instead of re-writing already well put together blogs I will just touch on how this affects us as investors and show evidence from various hosting groups on how this is affecting San Diego.
San Diego Short Term Rental Bookings
The San Diego 2-4 unit and SFR market is extremely low on inventory and pricing has outpaced inflation (see my blog HERE regarding this). We evaluate deals daily but we are truly in need of more inventory in order to find enough properties that work as an investment. The recent articles I have read, and the buzz on owners groups, would show that us investors should be ready to purchase distressed AirBnBs from owners who capitalized on the pandemics domestic travel boom. Most of these articles don't portray San Diego in this light but by being a member in these groups I able able to see the trends coming. Here are recent posts on occupancy here in San Diego:
These are not stand alone comments or posts. Almost every couple days someone is posting about their lack of bookings and perspective owners are holding off on purchases due to overwhelming negative comments regarding booking consistency.
With AirBnBs outpacing homes for sale, increased AirBnB fees (pushing vacationers back to traditional lodging), and a huge lack of inventory we hope to start to see more and more properties hit the market. If so, we need to be ready to buy! If you want to be ready please schedule a call so San Diego Apartment Brokerage can have you on our buyer list as we evaluate properties throughout SD county daily.
Here is a great article to get a grasp on what the trend is currently for AirBnB occupancy rates and the opportunity it creates: Why AirBnB Owners Are Getting Ready To Sell