Short-Term Rental (STR) Spaces are properties or rooms rented for a short period of time as an alternative to hotel accommodations. Tourists and travellers seeking more flexibility have  made Short-Term Rental (STR) spaces increasingly popular, especially during the pandemic. There are numerous reasons why travellers, especially those who are on the younger side, prefer STRs to hotel accommodations. In addition to flexibility, STRs generally offer a more relaxed experience compared to traditional hotel accommodations, creating a warm and personalised environment for guests.

STRs not only offer a delightful experience but also serve as a promising investment. Investing in STRs can yield substantial returns, making it an attractive option for those seeking to grow their financial portfolio. The good news? You don’t have to own an STR to start. Passive real estate income is possible by investing through online platforms, requiring less starting capital than investing in large real estate properties.

Investing in Real Estate

Investing can be a significant financial undertaking. It provides a means to earn passive income. This means that you do not need to ‘work hard’ to reap its benefits; you simply need the capital or means to get started. Investing can, at times, feel quite overwhelming with a lot of market jargon one may not be acquainted with and products one can invest in. Extensive and thorough research is needed as well as setting up your financial goals. These should come first before setting your eyes on any investment opportunity.

Market Share Trends of Short-Term Rentals

Real estate investments have been proven to be among the better investment products one can venture into. Moreover, the STR analysis shows that there is data to back up the decision of acquiring this type of investment. STRs are indeed a compelling investment to add to your growing portfolio. Here’s how Short-Term Rental Spaces align with share market trends:

Real Estate Often Rises

Real estate investments, despite the high cost, also come with high rewards. The intuition is that the land does not depreciate or decrease in value. Whatever the economic condition or situation, the land will always increase in monetary value. With this, realtors and developers acquire land and build different properties in the areas of their scope. However, these new properties cost much more.

Short-Term Rental spaces are ideal because it has the real estate component of not ever depreciating along with a much more investor-friendly price but with high rewards.

Growing Demand

Short-Term Rental analysis shows a growing demand for STRs with STR data. One of the tables used is the STRs growing market share against industry competitors. This only means that from the total accommodation sales, a huge chunk is coming from rising STRs.

Several factors come into play, but the STR platforms have made it more secure and reliable for vacationers to book these listings. The variety being presented to travellers which they could customise to keep within the budget, in a specific location, and with a preferred look – all while making the listing “feel like home” are one of the big players to this demand.

STRs are innovative and make use of technology to get “bookings” which keeps up with technological times. Additionally, the increased trend in sustainability has made vacationers more environmentally conscious. Most STRs are able to adapt these sustainability practices as hosts are usually hands-on in the STR property.

The increasing demand makes STRs an investment opportunity worth considering. As more people prefer to stay in STRs, the market may become saturated with increased competition. Steady growth means good revenue coming in for an investor.

Stagnant Supply

Here’s where it gets interesting: With the growing demand of travellers and vacationers wanting to book and stay in an STR, the supply cannot keep up. There are a lot of reasons for this. Mainly because accommodation industries like hotels and resorts have already been established and are very different from STRs. Moreover, a hosting experience can only be done with an owned room or property. Only realtors and developers have the means to build these at will. But, they have to build in bulk and it would take a while for them to complete it.

Increasing Travellers

Lockdowns – especially those in strict places where there was a need to stay at home have increased the sense of travel for people. Domestic travel has increased within the area of residence. As a much cheaper alternative, most travellers would prefer staying and being hosted in an STR instead of a hotel.

Usually, travellers also bring along their families which would cost a lot in a hotel accommodation. STRs, especially in an unfamiliar land, feel like home. Some have kitchens ready for use (which traditional hotels do not have), larger spaces, and different amenities to enjoy privately with family and friends. Lastly, the sense of community and interaction embedded within the vacationer’s stay would provide a lasting impact.

The increase in travel would only mean that their STRs are used more, creating rental revenue for your investment.

More Bang for Their Buck

Short-Term Rentals are undoubtedly incomparable to a hotel experience. Standard hotel rooms look the same but STRs provide a different atmosphere to vacationers and travellers. It is only in an STR that people can feel at home but also experience the place travelled to in a different way. The “personal touch” that hosts provide add to the travel experience.

Some STRs even incorporate a piece of the culture into their STR. For example, STRs in Venice are at the heart of the city with vintage, rustic pieces. An STR in the Philippines has the best ocean view wherein your neighbours are locals who know the land more than anyone.

The unique experience that STRs provide keeps people coming back for more, making them a growing and expanding option in these changing times.

Final Thoughts

Short-Term Rental has seen a growing demand throughout these changing technological times. It is an upsurging industry with growing market shares as compared to industry competitors. Investing in an STR as seen in an analysis that aligns with market share trends shows that there is steady growth without a lot of capital to start with.




I'm Steve Prescot, an Interior Designer living in Kansas. I am a fan of DIY, home design, gardening and anything related to home interiors and exteriors. I'm also interested in crafts and Home Improvement projects. I have been in the home design industry for more than 17 years. I love decorating and transforming spaces so that people living in them are happy and pleased with their space. Have a look around and I hope you'll like the content and ideas in this website!!

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