The short-term rental market, led by companies like Airbnb, has experienced significant growth in recent years. This trend is expected to continue in the coming years, with the global short-term rental market projected to reach $169 billion by 2025. However, the market may also face challenges as governments and municipalities around the world grapple with how to regulate and tax short-term rentals. To learn more about the future of AirBnb Short term rentals, we sat down with active AirBnb investor Devon Walden to get insight on what he believes the future holds.
Trends
One potential trend in the short-term rental market is the increasing popularity of “alternative accommodations,” such as vacation rentals in RVs, yachts, and treehouses. This type of accommodation offers unique and adventurous experiences for travelers, and could help attract a new segment of customers to the short-term rental market.
Municipal Taxation
Walden believes that taxes may impact the short-term rental market in a growing number of cities and towns implementing regulations and taxes on short-term rentals. For example, some cities have implemented caps on the number of nights a property can be rented out, or have required short-term rental operators to obtain a license or register with the city. These regulations can make it more difficult and expensive for property owners to operate short-term rentals, which could potentially reduce the number of available rentals and make it harder for travelers to find a place to stay. To hedge against this, Walden & his organization have added additional fees to their bookings to cover municipal fees.
Growth In The Future
Despite these challenges, Walden believes that the short-term rental market will continue to grow in the future. The rise of technology and the increasing popularity of online platforms like Airbnb are making it easier for people to find and book short-term rentals. Additionally, the continued growth of the travel industry, coupled with a growing desire for more unique and experiential travel options, is expected to drive demand for short-term rentals.
In conclusion Devon believes that the future of the short-term rental market is expected to continue its growth trajectory, driven by a combination of the increasing popularity of technology and platforms that enable it, as well as the rising demand for more unique and experiential travel options. To learn more about short term rentals & how you can get into one of the fastest growing real estate markets, connect with Devon Walden to get free market insight here.
