Phoenix area short-term rentals in decline due to saturated market
As seen on Arizona’s Family On Your Side 3TV, June 26, 2023.
The Phoenix short-term rental market is showing signs of saturation as supply grows faster than demand, according to local real estate expert Trevor Halpern.
He says too many listings are cutting into profits for property owners and investors.
Investors pull back as profits decline
Large investors who bought short-term rentals are now changing course.
“We’re seeing big companies that came and purchased a lot of short-term rentals that are now either selling them or converting them to long-term rentals because a short-term rental market might be saturated and they’re not getting the rent that they need to be profitable.”
Oversupply in the Phoenix Airbnb and short-term rental market is driving the shift.
Short-term rental profits under pressure
Returns are falling as competition increases.
“They’re not getting the rent that they need to be profitable.”
As income drops, more owners are moving properties into long-term rentals for stability.
Regulations add pressure
Local rules are also influencing decisions in the Phoenix rental market.
“Regulations from cities and towns and even HOAs may also be playing a part in some people converting short-term rentals into long-term rentals.”
Phoenix demand remains strong, but limited
Despite the slowdown, Phoenix remains a high-demand travel destination.
“This is always going to be a vacation destination… there is always going to be a demand… it’s just how much of a demand, how many short-term rentals can we actually sustain here.”