2025 - Where We Are Going & Where We Have Been

Realtor · Orlando, FL · Member since 2023 · 61 posts · 61 votes

Happy New Year to each and every one of you! May 2025 find your homes filled with happy guests, very little vacancies, and high nightly rates. :-) Reflecting on 2024, what is everything thinking will change in the coming year? From the reports I receive, the real estate investment market is poised to be very interesting. More opportunities for good deals on the horizon and hopefully interest rates will continue to go down. What do you predict for the STR's in 2025?

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

Happy New Year to everyone as well!

Not sure, but I don't see interest rates coming down much in 2025.

There are always opportunities if you look for them, no one will like bring them to your front door on a silver platter.

It seems like when you aren't looking for opportunities they do present themselves.

Kinda like it's easier to find a girlfriend when you already have one.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
Happy New Year to everyone as well!
Not sure, but I don't see interest rates coming down much in 2025.
There are always opportunities if you look for them, no one will like bring them to your front door on a silver platter.
It seems like when you aren't looking for opportunities they do present themselves.
Kinda like it's easier to find a girlfriend when you already have one.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
1y
I think that overall the economy will go nuts, but I still think STRs are saturated, they just got too much attention back in 2019-2021. Int rates are a mystery. I think the Fed keeps theirs up but what do I know....?
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Patricia Andriolo-Bull
Member since 2022 · 527 posts · 413 votes
1y
Agree, STR are saturated but given the numbers, I expect unsuccessful players will leave the market. While opportunities still exist, I think they are still rare with interest rates and property values high. People seem more angry with Airbnb and VRBO but ultimately, guests still see more value in them than hotels so the question will be if new entrants (or existing platforms like BDC) will continue to invest in the STR space (e.g. GVR)...2025 will be interesting to watch!
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Joel Oh
Member since 2023 · 188 posts · 111 votes
1y
More insurance will cancel short term rentals. They already cancelled many large complex deals or doubled their price for the past few years. As many cities require insurances for any rental properties, this will be very challenging for market being affected. I wonder how long Aircover will last and continues its amazing program.

Beside the government regulation and insurance shutting down certain markets, STR industry will continuously grow. Airbnb already became a synonymous for family vacation. With growing Latino population that tends to have a lot bigger family, I am not worried about finding guests. More big name companies will join the STR industry and hosts who are not exceeding expectation will be weeded out by their money power. I have been buying underperforming properties and I believe all the big names soon do the same just in a bigger scale.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
We will see more investors walk away because the properties aren't performing well, but other investors will pick them up and the quantity will remain high.
Rates are anyone's guess. Trump doesn't control them, but he's going to try everything he can to bring mortgage rates down. He also doesn't control regulations in the states/cities, but his attempts to cut regulations may trickle down and impact personal property rights and people's ability to use their properties as they see fit.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
1y
Despite the storms in W FL we are seeing YoY rate and occupancy increases 24-25. I think the unsuccessful and struggling units who have not jumped ship yet will continue to do so, leading to less supply, increasing demand, and a better year for the successful units. As far as rates I see them declining slower than expected but lowering nonetheless. I think a stronger economy will lead to more demand and higher values in growing areas.
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Danae PitcherBusiness Member
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Realtor · Orlando, FL · Member since 2023 · 61 posts · 61 votes
1y
I think rates will decrease at least a little bit. I don't see insurance companies pulling out of the STR market across the board. I spoke to several of the insurance agents we use here in the Disney area and they have all said that policies are regularly being written and by all they hear, will continue to do so. I believe the older vacation homes that have not been brought up to date will really struggle with occupancy and / or rates. Expectations for a higher standard of decor and theming has infiltrated this industry and those are the ones that do well.
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