The STR Tracker #1224

TRACKER
What’s Happening in the Smoky Mountain STR Market?

The Smoky Mountain STR Market: A Closer Look at What’s Changing

The Smoky Mountain short-term rental (STR) market is going through some interesting twists and turns this season. From fewer bookings to higher property prices, there’s a lot to unpack. Let’s dive into the key insights and what they mean for you as an investor or property owner.

Fewer Bookings, But Higher Nightly Rates

Occupancy rates have dropped to 62.7%, a noticeable dip of 15.08% compared to last month. While this might sound like bad news, it’s not all doom and gloom. Property owners have been adjusting their nightly rates, which are up by 5.75% to $418.16. This is a smart way to make up for fewer bookings—charging more per night to balance out the lower volume. This is a sure sign of operators focusing pricing around seasonality trends in hope to increase revenue.

Revenue Takes a Dip, But Property Values Are Holding Strong

Monthly revenue is down 10.2% to $7,863. Not great, but it’s not surprising given the drop in occupancy. Meanwhile, property prices are still climbing, with the average purchase price up 6.26% to $790,854. Homes are also selling faster, with an average of just 88 days on the market. This shows there’s still plenty of interest from buyers, even with the revenue fluctuations.

Condos vs. Cabins: Which Investment Makes Sense?

If you’re looking at condos, 1-bedroom units are stealing the show with a whopping 27.3% ROI. They’re affordable, easy to manage, and pack a serious punch when it comes to returns. For cabin lovers, the big winners are 6+ bedroom properties. These larger investments come with higher risks but offer an impressive 12.1% ROI thanks to their high nightly rates. Want something steady and predictable? Smaller 1-bedroom cabins deliver a reliable ROI of 11.2%.

The Bottom Line

The Smoky Mountain market is shifting, and that’s okay—it’s all part of the STR game. If you can adapt to these trends, there’s still plenty of opportunity to thrive. Focus on properties that fit your budget and goals, and don’t shy away from experimenting with pricing and promotions to attract more bookings. The key is staying flexible and keeping an eye on the bigger picture.

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The Predictive Partners & Opportunities

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