The uncertainty with Airbnb’s financial situation, and the challenges it faces in places like Phoenix, Austin and Tennessee, should serve as a warning to Florida and other states.
Investors must learn from the difficulties that have arisen in other states, to avoid possible real estate collapses and to safeguard their investments. The decrease of up to 50% in the income of Airbnb owners in specific areas, is a wake-up call.
Florida, known for its thriving housing market, must take proactive steps. An effective way to better understand the market is to use Airbnb analytics tools, such as AirDNA. This platform provides key data and statistics on vacation rental performance, including information on rental rates, occupancy, competition in the area, and historical trends.
AirDNA and other analytics tools such as Alltherooms, Hostaway, IGMS and Vacasa allow you to track the financial performance of properties, identify areas with high demand and assess market competitiveness.
By using accurate and up-to-date data, investors and property owners can make informed decisions about property purchases, rental pricing, and the management of their real estate assets. This, to quickly adapt to market changes and avoid unnecessary risks.
It would be prudent to know how to select a property for investment, evaluate it and have a plan B, ensuring that the long-term housing supply is not significantly affected. By doing so, a possible market saturation could be avoided and safeguard the stability of the sector in the state.
Learning from the experiences of others also implies promoting adequate diversification. To the people of Florida I give you a personal recommendation, taking into account its tourist attraction: do not depend exclusively on vacation rentals as a source of income.
Fostering the development of long-term housing, encouraging investment in different sectors and guaranteeing the availability of affordable houses are key measures to maintain market stability. In short, there are many opportunities out there and it is advisable not to have all your eggs in one basket.
Daniel Segovia is a real estate entrepreneur, coach and speaker, with a community of investors of almost a decade. He is the director of mentoring and coach of “Latino Communities”, which trains more than 1,600 real estate investors in the US and Latin America. @danielsegoviare
