The price jump happened when people started buying properties exclusively to use as STRs. People with a second home or a guest suite they already owned for personal reasons could rent out for some extra spending money without having to turn a “profit” on it.
But when they started taking out loans and buying properties exclusively for renting, the costs of rentals had to exceed the cost of owning the property. And when profits matter, hotels can afford to be WAY more cost-competitive than houses because they can cram thousands of people into a single acre of land.
The price jump happened when people started buying properties exclusively to use as STRs. People with a second home or a guest suite they already owned for personal reasons could rent out for some extra spending money without having to turn a “profit” on it.
But when they started taking out loans and buying properties exclusively for renting, the costs of rentals had to exceed the cost of owning the property. And when profits matter, hotels can afford to be WAY more cost-competitive than houses because they can cram thousands of people into a single acre of land.