STR Tracker #1024

🏔️ October 2024 Smoky Mountains STR Highlights 🏡

Bigger is great, but is it better?

With the data in this month’s STR Tracker, I couldn’t help but wonder 🤔—what external factors are driving success in our STRs? Why did one-bedroom cabins crush it in October? 💥 Ring, ring—let the wedding bells sing! 💒👰‍♀️ Check out highlight #1 to see why these cozy cabins are making memories and raking in bookings!

Here are five standout stats from this month’s STR Tracker.

1. 1-Bedroom Cabins Are Crushing It! 🎉

   These cozy little gems hit an 81% occupancy rate this month. Why? With 20,000 weddings a year in the Smokies, lovebirds can’t get enough of these memory-making spaces. 💍💒 If you’re looking for consistency, one-bedroom cabins are the way to go!

2. Absorption Rates Keep Dropping 📉

   Good news for buyers! Absorption rates are slipping again, thanks to a better interest rate environment and a flurry of end-of-year investments. With the election behind us, we expect this trend to keep rolling. Time to snag that dream cabin or condo! 🏘️

3. Booking Lead Times Are Shrinking! ⏳

   At just 52 days, travelers are either planning way ahead—or not planning at all! 🛫 Don’t get caught off guard. Tools like Pricelabs can help you stay competitive with dynamic pricing, making sure your property is booked AND profitable.

4. Entry Barriers Are Coming Down 🔑

   Thinking about diving into the Smoky Mountain market? Now’s your chance! There are 107 cabins under $500,000 and 39 condos under $300,000 waiting for you to grab them. 🏡💰 Start your search before someone else beats you to it!

5. $300-A-Night Sweet Spot 💵

   Did you know more than HALF of the rental market charges less than $300 per night? 🛏️ These properties—typically 3 bedrooms or less—boast a solid 73% occupancy rate. If you’re under $300 a night, you’re right in the sweet spot to maximize bookings!

Ultimately, the biggest thing that stands out to me is the health and resiliency of this market. It has consistently proven to navigate difficult waters and looks to be doing it again. While this hasn’t been the most profitable year for STRs in the Smokies properties that were bought correctly and are managed well continue to cashflow!

Happy Investing! Stay fired up!

Justin Beasley