Why short-term rental properties are hard to sell right now

A YouTube video from Michael Bordenaro Clips argues in its title that Airbnb is "crashing" and that owners cannot sell short-term rental properties. Treat that as one creator's framing, not a measured market verdict. The underlying question is a fair one, though: why do some short-term rental (STR) homes sit unsold, and what should an investor check before buying or listing one?

The short answer is that an STR is priced like two things at once. It is a house, and it is a small business. When the business side weakens, through softer bookings, lower nightly rates, higher costs or tighter local rules, buyers who value the income stream lower their offers. Many sellers, especially recent buyers with expensive loans, cannot or will not accept those offers. The result is a standoff: listings linger, and price cuts arrive slowly.

Note on sourcing: the transcript of the video was not available to us when this article was prepared. We therefore do not quote or attribute specific figures or claims from the video beyond its headline. Everything else below is general market context and guidance, and where we cite data we point to the public source.

What makes an STR different from an ordinary home sale

A typical owner-occupied home sells to a household that wants a place to live. A short-term rental sells to a narrower group, and each type of buyer values it differently.

  • Owner-occupants care about the monthly payment, the neighborhood and the condition of the home. They often pay little for "rental income" that they will not use.
  • Investors care about net operating income, financing cost and how stable the revenue is. They typically want to see actual booking history.
  • Second-home buyers care about lifestyle, location and carrying costs, and are sensitive to interest rates and stock-market confidence.

If an STR was bought at a price that assumed strong occupancy and high nightly rates, only the investor group will pay that price, and investors are exactly the group that demands proof. A seller whose recent performance is below the pro forma has a hard time making the numbers work for any of the three groups.

The forces that squeeze STR sellers

Income that is easier to overestimate than to prove

Short-term rental revenue is volatile by design. It moves with seasons, local events, new supply and travel demand. Projections from listing-analytics tools or a seller's marketing material can look generous compared with a full year of tax-reported results. Many buyers now ask for twelve to twenty-four months of platform payout statements, tax returns and expense records, and those documents can be less flattering than the listing.

When an area becomes known as an STR hot spot, more owners enter, supply rises and average rates can soften. This is a general dynamic in vacation and event-driven markets rather than a claim about any single city. The same neighborhoods that looked like safe bets during strong travel years can become crowded, and a crowded market makes each individual property less distinctive.

Financing that costs more than it used to

Mortgage rates are a large part of the story. Freddie Mac publishes its weekly Primary Mortgage Market Survey, and investors can compare current rates against the loans many STR owners took out. Investment-property and second-home mortgages typically carry higher rates and larger down payments than primary-residence loans, so a buyer evaluating an STR faces a higher hurdle than a first-time buyer in the same area. For a wider look at how rates and prices shape affordability, see our explainer on why it is so hard to buy a house.

Some investors also use loans underwritten on property cash flow rather than personal income. Those can carry higher rates and fees, which raises the break-even point on a sale.

Rules that change the buyer pool

Cities, counties, condo associations and HOAs have been adding permit requirements, minimum-stay rules, caps on the number of STR licenses and in some cases outright bans. A property that is allowed to operate as an STR today may not be allowed to under a different owner, depending on how local rules treat transfers. If a license does not transfer, the buyer is purchasing a regular house at a regular house's value, regardless of the seller's revenue history.

Condo buildings add another risk. Special assessments and rule changes can hit owners hard, a theme we covered in condo special assessments and forced sales.

A quick table: what to check, and why it matters

Item to verify Why buyers and sellers should care
12 to 24 months of actual booking and payout history Separates real performance from projections
Occupancy and average daily rate versus nearby comparable listings Shows whether the property is average, strong or weak in its own market
Operating costs: cleaning, platform fees, utilities, insurance, property management, supplies STR expenses are often higher than for a long-term rental, so net income is smaller than gross
Local permit, license and tax status, including transferability Determines whether the income stream can legally continue for the next owner
HOA or condo rules on rentals and minimum stays Can ban or limit STR use even if the city allows it
Loan type, rate, balance and prepayment terms Sets the lowest price a seller can accept without bringing cash to closing
What similar homes without STR income sold for Gives a floor value if the income story fails
Long-term rental rent estimate Tests whether the home can still pencil as a conventional rental

What this means for you

This is general information, not personalized financial or tax advice. Consider talking with a licensed agent, a CPA and a lender before acting.

If you are thinking about buying an STR

  • Underwrite a conservative case. Model occupancy and nightly rates below the seller's numbers and see whether the property still covers its mortgage, taxes, insurance and maintenance.
  • Ask for documentation. Platform statements, tax filings and calendar history matter more than a marketing summary.
  • Price the exit before you buy. Ask what the house would be worth to an owner-occupant, and what rent it would command on a 12-month lease. If the answer is far below the purchase price, you are relying on the STR income to hold the value up.
  • Check rules in writing. Confirm permit status with the local government and read the HOA or condo documents yourself.
  • Keep reserves. Vacancy, repairs and a slow sale can all happen at once.

If you are thinking about selling an STR

  • Know your break-even. Add your loan payoff, agent fees, closing costs and any taxes. That number tells you how much room you have to cut price.
  • Price against the whole market, not just the peak. A buyer will compare you with owner-occupant homes as well as other STRs.
  • Sell the documentation. Clean books, a transferable license and a clear booking history make the income credible.
  • Consider alternatives. A mid-term or 12-month lease may cover carrying costs while you wait for a better selling window. Check local rules and your loan terms first, since some mortgages restrict certain uses.

If you already own one

  • Track net income monthly, not just revenue.
  • Review your loan. If you have an adjustable-rate or interest-only period, know when it resets.
  • Stay current on local rules. Regulation can change faster than market conditions.

How this connects to the wider housing market

Short-term rentals are a small slice of US housing, and their problems do not automatically become everyone's problems. Still, they interact with broader trends. Where investors cannot sell, inventory can build up locally and put downward pressure on nearby prices. Our report on what Lance Lambert says happens next for home prices discusses how rising inventory shapes regional price paths, and new-homes unsold inventory in 2026 shows another example of sellers adjusting to a slower market.

Public data helps keep the story in proportion. Redfin and Zillow publish metro-level data on inventory, price cuts and days on market. The National Association of Realtors reports on existing-home sales and on investor and vacation-home purchases in its research releases. FRED, the Federal Reserve Bank of St. Louis's data portal, carries mortgage-rate and housing series that let you compare conditions over time. None of these sources isolates STR performance perfectly, so local listing and permit data are still essential.

Limits and counterpoints to the "crash" framing

A headline claiming that no one can sell STR properties is a strong statement, and it deserves caution.

  • Markets vary widely. A resort town with limited supply and steady demand can behave very differently from a suburb that flooded with new STR listings. National generalizations rarely fit a specific street.
  • Properties that sell do not make headlines. Well-run STRs priced to the market can and do sell. Stories about homes that sit are more visible than quiet closings.
  • Slow sales are not the same as a crash. A property taking longer to sell, or selling for less than a peak-era price, is a repricing. A crash would show up broadly in sales volume and price data, which should be checked against sources like NAR, Redfin and Zillow rather than assumed.
  • Video summaries are selective. A short video cannot capture every local factor, and it may rely on anecdotes. We could not review the transcript, so we are not assessing the video's specific evidence.
  • Some owners are not in trouble. Investors who bought at lower prices, with low-rate fixed loans and strong cash flow, can usually hold through a soft patch.

What to watch next

  • Mortgage rates. Weekly Freddie Mac readings influence both buyers' budgets and sellers' willingness to hold. Our piece on treasury yields and mortgage rates explains the link.
  • Local regulation. New permit caps, tax changes or HOA votes can shift values quickly.
  • Travel demand. Consumer spending and travel patterns affect bookings and nightly rates.
  • Local inventory and price cuts. Rising listings, longer time on market and more price reductions in your target area are early signals.
  • Your own numbers. The best indicator for any individual owner is net income compared with carrying costs.

Short-term rentals can be good investments, but they are operating businesses attached to real estate, and they are priced accordingly. The investors who tend to fare best are those who test the numbers against a downside case, verify the rules, and know in advance who the next buyer will be.