Is the Airbnb Market Slowing in 2024?

Airbnb hosts are abuzz, all wondering the same question, is the Airbnb market slowing in 2024? Hosts are swapping stories of January and February months without any bookings, offering premium weekends with 30% discounts, and wondering where have all the guests gone.

Short term rental investment experts swear it’s all fine, but that doesn’t seem to be the story on the ground, and the Airbnb market slowing seems to have a few factors at play.

Impact of Recession on Airbnb

First, there’s the possibility of a recession. Prices skyrocketed over the past few years, but with travelers tightening their wallets, those properties are no longer getting booked at the same rate. To keep up occupancy, hosts are slashing prices, offering discounts, and dangling any carrot they can find to tempt guests.

However, the upside of limited travel spending means that more people may stay closer to home. Less trips to Europe means more stays booked domestically, and that could help local Airbnb hosts.

Increased Supply Slowing Down Airbnb Market

Second, there’s the massive uptick in supply, particularly in areas like the Great Smoky Mountains, Joshua Tree, and the Hudson Valley. These once sleepy areas were always popular with travelers, but now they have more vacation rentals than travelers could ever dream of booking. One host told us that she was one of the first Airbnbs in her area, and now there are over 300 — all in the span of two years.

Note: there’s much more to be said on the issues with so many homes being turned into rentals, rather than serving as housing for the local population, but that’s a conversation for another day.

Stricter Regulations Make it Harder to Host

Third, many towns, cities, and states are cracking down with stricter regulations on short term rentals. Some owners may be pushed out due to caps on rental numbers, while others may not want to navigate increasingly complicated requirements.

So is the Airbnb Market Slowing in 2024?

Most experts agree these factors could contribute to the Airbnb market slowing in 2024, but not necessarily in a straightforward way. Numbers may return to 2019 levels, or areas will see level bookings, but, with the increased supply, that will look scarce across individual properties.