Under-rated STR Markets?

Question

BP STR community - what under the radar markets have caught your eye over the last few months? The Gulf Shores market seems to be relatively stable while recently "hotter" markets such as here in Austin have seen a drastic reduction in ADR.

Would love to get your thoughts/input @Napoleon DeCiutiis - feel free to bring in other's as well!

Dave Stokley · Answer

I see tons of micro-niches that are easy to find if you know your market extremely well. All sorts of seasonal businesses that attract people from all over, state parks, etc. It’s all about market knowledge.

Jossalyn Wallace · Answer

Hey Tyler, We are in the FL Panhandle area and the short term rental market is very strong and steady here. Over the last year we've been named one of the top destinations in multiple popular publications. I think in the next few months we will see a lot of opportunity come available here. In addition, we are surrounded by military bases which helps keep things stable in the event of a down turn.

I am also considering Gulf Shores. Let me know how it goes if you decide to take the leap over there!

Joshua Messinger · Answer

Hey @Tyler Solomon!

I would recommend looking deeper than this. Diving into each successful listing and really digesting why it has performed so well will be your best bet on this. I would recommend using price labs to do this since you can create such specific comp sets which really allow you to analyze the data you are looking at on Airbnb/VRBO.

Hope this helps! Feel free to reach out if you have any more questions!

-

Josh

Jossalyn Wallace · Answer

Definitely! Having the military and health care professionals in this area keeps all of our rental markets very strong.

Paul Sandhu · Answer

Borger Texas.  There is a place there that makes gasoline from stuff they pump out of the ground.  But I don't know much about that.

Ryan Moyer · Answer

I guess it depends on the crowd you run with.  Around here, Gulf Shores is nothing close to a lessor known STR area.  It's one of the most well-known and talked about.  Far more than Austin, a place where most around here have never been interested or considered.

Napoleon DeCiutiis · Answer

@Tyler Solomon-   The Gulf Coast/Emerald/Forgotten Coasts have not slowed down for us at all in the purchasing department.  For the local area, the "higher" interest rates have reduced the tire kickers, but I still have 5 closings in December for this area. None of us in The Short Term Shop have seen a drastic reduction in purchases in this area. The "off" season is here, though, so most are either repairing/switching to MTR/reducing their rates to meet snowbird/travel nurse requirements. ADR has reduced for the season, but will come right back up to where it was again when the end of Feb/beginning of Mar comes around. We've been renting on the entire Emerald/Forgotten/Gulf Coast for the last 75 years. It's what we do here and how our economy is driven.  The local PCB Tourism Board  has also dumped a lot of money into making us a year-round tourist destination.  Did that answer your question ok?

Ben Scarborough · Answer

Gulf Shores is a fantastic market. However, it is critical your guests have easy walking access to the beach. Also, if you have a heated pool, it can make more of a difference than you would think. Market data is great to look at and get a good overall understanding of a market, but like anywhere, location is absolutely key in beach markets which the data won't reflect. Don't settle for something a few streets back or on the North side of Beach Blvd. The main roads can be very busy here in the peak season and you do not want your guests having to dodge traffic on their way to the beach!

Brian Green · Answer

@Doug Spence Thanks Doug - Yes Saratoga Springs NY is a great market for str investing. It checks a lot of the boxes; long history of short term rentals, regional tourist location, stabile multi-faceted economy, minimum government oversight/regulation(to this point). Happy to discuss and provide further info.

Under-rated STR Markets?

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