STR Buy/Sell Trends 2025

[Erica Calella]

For investors utilizing the STR strategy, what is your "gut feeling" for what the upcoming investment landscape will look like in 2025?

I recently spoke with an investor who believes STR sales in WNC are going to hit the market like crazy in spring of 2025. In her opinion, many investors are desperate to get out of their saturated markets but are waiting for interest rates to come down since many of them had purchased back in 2021-2022 at lower rates and higher prices. This makes sense, but what do we think will happen to these properties once sold? Will they likely be recycled into a new STR under new ownership? What are the other possibilities?

I'm thinking that this would also be a good time for me to add another property to my STR portfolio because I think prices will be more competitive once the transaction volume increases. My hesitation stems from the fact that I am unable to wrap my head around how this will affect the overall STR supply in vacation markets.

[Ken Boone]

Quote from @Erica Calella:

For investors utilizing the STR strategy, what is your "gut feeling" for what the upcoming investment landscape will look like in 2025?

I recently spoke with an investor who believes STR sales in WNC are going to hit the market like crazy in spring of 2025. In her opinion, many investors are desperate to get out of their saturated markets but are waiting for interest rates to come down since many of them had purchased back in 2021-2022 at lower rates and higher prices. This makes sense, but what do we think will happen to these properties once sold? Will they likely be recycled into a new STR under new ownership? What are the other possibilities?

I'm thinking that this would also be a good time for me to add another property to my STR portfolio because I think prices will be more competitive once the transaction volume increases. My hesitation stems from the fact that I am unable to wrap my head around how this will affect the overall STR supply in vacation markets.

So I'm on the other side of the Smokies. As far as saturation goes when the boom was hitting we started seeing regular homes and even mobile homes get converted to "cabin/chalet" rentals. In other words homes that are really not STR level homes were turned into STRs.

I believe those homes will revert back to just being SFH. As far as all the other STR that will be sold because people bought wrong and our upside down, I think they will stay STRs so saturation level is not going to change much IMO.

I do believe that we will start seeing better prices as people start to try to get out from their monster debt with properties that are not doing what they thought they would do. 

I do however think the market will stay very competitive.