![]() When will Airbnb owners in Phoenix start selling? Which ultimately is the biggest reason why revenue has collapsed over the last two years. The massive surge in listings drove down occupancy rates in the market. With most of that growth coming in the last 15 months. The supply basically doubled in four years. The result? Short-term rental listings in Phoenix exploded from about 7,000 prior to the pandemic to nearly 14,000 today. So they put it on Airbnb or VRBO instead. At the same time, many would-be home sellers decided they didn't want to sell their property in a down market. Over the last two years in Phoenix, many Airbnb investors piled into the market and purchased houses with the intention of renting them out short-term. Airbnb Supply in Phoenix has doubled since the Pandemic StartedĪnd ultimately this monumental collapse is being driven by the insane increase in the supply of short-term rentals. The Airbnb Bust in Phoenix is getting so bad that some operators are being forced to list their property for $55/night. ![]() And not even enough to break even if there's a mortgage on the property. That's 20% less than one could get for a long-term rental. Airbnb revenue in Phoenix has collapsed by 72% in the last two years (Source: AllTheRooms)įast forward today and those revenues have collapsed to $1,590/month (outside of a brief upward blip due to the super bowl). Pushing the average revenue for short-term rentals in Maricopa County to $5,500/month according to AllTheRooms. This surge in demand caused Airbnb revenues to nearly triple from 2020 to 2021. With people from all over the US descending on the city to take advantage of its warm weather and lax COVID rules. During the pandemic there was a massive short-term rental boom that took place in cities like Phoenix. How could revenues go down 72% over two years? The scale of the collapse in metros like Phoenix is difficult to comprehend at first. Phoenix Airbnb Revenue down 72% in two years Pushing inventory back onto the US Housing Market and applying downward pressure to home prices. As more and more of the 1.4 million short-term rental operators across America start losing money. The Airbnb Bust in Phoenix and other cities will re-shape the landscape of the US Housing Market in 20. Where Airbnb revenues have crashed an astounding 72% over the last two years according to data from AllTheRooms. This trend is especially evident in Phoenix, AZ. And some are even now losing money after paying their expenses. Airbnb Bust is sweeping America right now and causing big problems for Airbnb owners in certain cities.
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