Miami's short-term rental market is experiencing a decline due to factors such as a slowdown in post-Covid vacation demand, government hostility towards the LGBTQ community, and travelers' financial constraints caused by inflation.
The short-term rental market in Miami isn’t so hot this summer. And there are a number of reasons for that: A slowing of the post-Covid vacation rush, the Florida government’s hostility toward the LGBTQ community, and travelers’ financial constraints due to inflation are a few contributing factors.
The economic collapse in South American countries has particularly impacted Miami tourism from that region, according to the Miami New Times. Additionally, the saturation of the market with new rental units purchased by out-of-state investors has affected revenue, as many owners struggle to cover their mortgages. The average daily rental rate for Airbnbs in Miami held steady at $218 in May 2023 compared to $221 in May 2022, the article said.
Xavier Doe, a cofounder of Miami Residences Management and Vacation Rentals, was quoted as saying, “People who are not financially stable will be forced to sell because they made their projections based upon the year before. It was great the year after COVID when everyone came to Miami. Those people bought properties to make into Airbnbs, but they can barely cover their mortgages.” Although occupancy is steady, he estimated rental rates fell around 20% in the metro area.
Key Data entered into an exclusive partnership with the Association of Short Term Rental Companies in Greece (STAMA Greece). As part of the partnership, STAMA Greece will have access to Key Data’s Greek market insights dashboard, providing real-time information on market and industry performance trends.
STAMA Greece, a member of the European Holiday Home Association, represents nearly 5,000 holiday home owners and managers in Greece. All STAMA members will be offered access to Key Data’s business intelligence and benchmarking tools, which include over 30 key performance indicators such as average daily rate, revenue per available rental, occupancy, booking window, and feeder market data.
An historic downtown building in Madison, Wisconsin — originally slated for demolition — will now be transformed into a hotel-apartment hybrid. The property was constructed in 1907 as the Madison Saddlery Company building and later became Rubin’s Furniture.
The project, named The Saddlery, will offer 46 units with fully equipped kitchens, separate living rooms in some suites, and laundry facilities catering to both short-term guests and long-term renters, providing a blend of hotel and apartment amenities. The company expects more short-term guests during the peak tourism season and more long-term guests in the winter and spring. The property will be licensed as a hotel and offer traditional hotel services such as fitness facilities and housekeeping.
In Case You Missed It
I caught up on this Bloomberg interview with Airbnb co-founder and CEO Brian Chesky, and his statement that being a public company CEO is an immense responsibility struck me. “I only want to keep doing this if I am the best person to do this,” he said. “And the longer I do, the more I become the best person because I have history as a founder that you can never replace, and my biggest weakness was I was young and had no experience, and now I have that too.”
An expense management company, Topkey, which focuses on property managers, raised $5.2 million in funding, Axios reported.
Property managers of short-term rentals often have specialized needs, whether it is handling expenses for multiple properties and owners or through a variety of distribution partners.
Felicis Ventures led the seed round, and chipping in were a Y Combinator, 16Z, Andrew Kitchell, Liquid 2 Ventures, Assurant Ventures, Grit Partners, and Kindergarten Ventures.
Steadily, an online landlord insurance start-up based in Austin, has secured $28.5 million in its latest funding round. The company offers a platform that enables landlords to explore and acquire insurance products for their residential properties. The Series B funding was led by Zigg Capital, a venture capital firm specializing in real estate technology investments. Other participants in the round include Matrix Partners, Koch Ventures, Clocktower Technology Ventures, and Nine Four Ventures.
Around the World
Porto, Portugal residents expressed their displacement from the real estate market due to the prevalence of short-term rentals, while property owners argue that these rentals contribute to the local economy.
While tourism plays a significant role in the local economy, there is a delicate balance between sustainable tourism and overtourism, where local residents are unable to afford housing.
In April 2023, tens of thousands of people in Portugal protested against the housing crisis they say was caused by foreign property investments, low wages, a lack of affordable housing, and the erosion of residential housing due to holiday rentals.
The number of nights spent by visitors in short-term rentals in Dublin compared to pre-pandemic levels fell sharply, according to a new report by the European Commission. Data collected from major booking platforms shows that bookings for short-term rentals in Dublin decreased by almost 60% in 2022 compared to 2019.
This decline is the largest among major city destinations in the EU. In 2022, there were a total of 1 million guest nights booked in Dublin through the four online platforms, which is nearly 1.56 million fewer guest nights than in 2019, representing a decrease of 59%. The reduction in short-term rentals in Dublin surpasses the declines observed in other popular cities such as Amsterdam, Prague, Berlin, Budapest, and Rome.
Elsewhere on Skift
Travel technology company Sabre acquired a small startup, Techsembly, which helps luxury hoteliers manage the sales of gift cards, among other cloud-based software services.
The companies didn’t disclose the deal terms or acquisition price. London-based Techsembly raised about $1.1 million (£1 million) in 2021 from SuperSeed Ventures and a handful of undisclosed private investors. Techsembly, led by co-founder and CEO Amy Read, is perhaps best known for helping luxury hotel brands sell property-specific experiences via global gift cards, which can be redeemed across multiple properties and currencies.
Skift Short-Term Rental Reporter Srividya Kalyanaraman writes the Skift Short-Term Rental Report. Send news tips to [email protected].
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