Seeking Advice on Hot & Cold Markets for STR in 2024

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Seeking Advice on Hot & Cold Markets for STR in 2024

Brian Cannon
Dallas · Member since 2024 · 8 posts · 3 votes

Hi All - Looking for my next investment move and considering diving into the short-term rental market. Would love any advice on promising markets, as well as markets to stay away from the rest of 2024. 

Curious to know:

1. Any upcoming markets with great potential/ any current strong markets that are not overly competitive 

2. what key factors to consider outside location when choosing an STR market.

3. Tips to ensure success if you are located outside the state/city the property is located. 

Any tips are appreciated and please feel free to reach out to connect! 

- Brian

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y

I'd look at Carolinas costal towns. 

Get a house over a condo if you can.

I've been looking at a beach house to rent in Myrtle Beach and they are pricely and calenders look pretty full.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    I'd look at Carolinas costal towns. 

    Get a house over a condo if you can.

    I've been looking at a beach house to rent in Myrtle Beach and they are pricely and calenders look pretty full.

    5Reply
  • Annie Seurer
    Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes
    2y

    Most great markets are competitive and you are generally taking a risk trying to jump in a 'trendy' market. With that said - markets near feeder cities are good, drive to markets, etc. John Bianchi has some great free videos that I highly suggest watching that will help you analyze markets. 

    General tips: design for the target demographic and go above and beyond whatever the competition is doing, ie if the competition has a hot tub and a pool, make sure you have a hot tub and a pool AND a game room, etc. I'm in the design/renovation space for short term rentals, but it's the foundation of success in the STR world.

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    Natural elements...beaches, mountains, national/state parks, etc.... have always had a tourist drive to them for many many years. Man made attractions like amusements parks, sport cities, etc., will have an ebb and flow of visitors depending on the current demand. We always recommend investors pick an area with little STR regulations that draws them and is more of a natural element people want to explore and see. Also don't be scared of competition! If you know how to tailor a listing to your guest avatar and how to stand out, competition can actually be a good thing.

    [email protected]330-557-3021
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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I would focus on established markets that are still showing growth and have more than just one draw.

    Taking my main market of Tampa Metro as an example - There is more than just beaches, you also have MLB/NHL/NFL + Spring break and MLB Spring training, aquariums, golf, casino, new downtown development, and a lot of business travel.

    You want to avoid markets with just one draw, as if something happens to that draw, you will be hurting for who knows how long.

    [email protected]813-563-0877
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  • Armani Colon
    Real Estate Agent · Stroudsburg · Member since 2022 · 15 posts · 9 votes
    2y

    Hi Brian,

    I believe it is important to consider market resilience as well as sustained growth. For instance, the Poconos have remained a popular option because of its year-round tourism draw, with skiing and lodging in the winter, hiking in the fall, and camping around lakes in the summer.

    As others have said, going into markets with one draw is risky.

    Apart from location, having a clear understanding of STR regulations in your market is key. For example, some cities have started capping the number of short-term rentals allowed, while certain HOAs impose fees that can significantly cut into your margins.

    For out-of-state investments, having a trustworthy property management team that understands local laws and has good relationships with HOAs can make all the difference. Ideally, the right company will handle everything from cleaning and booking management to on-the-ground troubleshooting for guests when needed.

    2Reply
  • Autumn Cain
    Real Estate Agent · Stroudsburg, PA · Member since 2024 · 17 posts · 7 votes
    2y

    Hi Brian!

    As a property manager/agent in the Pocono Mountain area (PA), I would definitely recommend taking a look into this area for STR. There are some unique factors that set aside the Pocono areas from many others like the seasonal aspects of tourism. A Cool part of the Pocono mountains is that the tourist season lasts ALL year- not just for a few months out of the year. There are diverse activities year round from lake beaches, hiking, sightseeing, leaf changing tours, skiing, indoor waterpark resorts, outdoor parks, farms, zoos and historic areas.

    As far as key factors to consider outside of location I would recommend 1. Look at a house that has unique factors. Think A-frames and chalets over the regular ranch stye homes. As a PM for a wide variety of units, the fun ones always outperform the cookie cutter. As far as other factors for an area to choose, outside of the location, I'd definitely say do your homework on the general feeling of STR by Township. Is the township taking any moves against/pro STR? Do they support it? Is the community welcoming of it? Lastly I'd say research the demographic of the parties that partake in tourism in the area. Are they mostly families? Couples? Big groups? Find a house that would appeal best to who you are selling to.

    3. If you are located outside of the city it is located in, I'd definitely recommend a PM. Whether that looks like one subcontractor you trust, or a company who's brand identity you can get behind. Having boots on the ground with an STR can make or break the guest experience, as well as preventative maintenance and quality upkeep of your unit.

    Good luck on your journey! STR is a fun one- you'll get to have some fun and get creative with your product. Enjoy it!

    2Reply
  • Jonathan DempseyBusiness Member
    Rental Property Investor · Pocono Pines, PA · Member since 2018 · 153 posts · 117 votes
    2y

    @Brian Cannon Autumn nailed the sentiment above.  In any market, its about the home and experience the home provides.   

    Looking at a competition standpoint, I would consider places where it will be fairly difficult for others to replicate a product you're looking to share.   And also look in markets where it seems even some of the top performing listings still have ikea furnishings and iphone photos.

    For example, in the Poconos market, many listings are still marketed poorly like this, and most homes are 3-4 bedrooms.  If you find a nice 5+ bedroom product or 2- bedroom product, you could be in good business.  

    @Autumn Cain is a great resource if looking for more info in this market.   Best of luck.

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