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- AZ Airbnb’s Cash Oasis ☀️
Do you like the desert and/or money? Today’s top story is for you…
Airbnb hosts raking in major profits in surprise cities
All signs pointing to lower mortgage rates by mid-2024
Airbnb CEO reveals grand ambitions to be your personal "AI concierge"
🔥 Deal of the Day! 🔥: 4 bd | 4 ba | Cle Elum, WA 98922
Rent Like the Wind
Airbnb hosting is proving surprisingly lucrative in certain US cities. Analysis shows Arizona destinations lead the pack for host income potential versus average wages. Scottsdale tops the list with average nightly rates of $449 - 56% of Arizona's weekly average salary. The area attracts deep-pocketed golf enthusiasts and spa visitors.
Charleston, South Carolina takes 2nd place at $345 per night - 50% of the state's weekly earnings. Tourism is driven by history tours, foodie culture and nature activities. Tempe ties for 2nd, fueled by Arizona State University and abundant hiking trails and waterfalls. Nightly rates there average $402 - equal to 50% of weekly Arizona salaries.
State capital Phoenix takes 3rd place for profitable Airbnb hosting with nightly rates averaging $385, 48% of Arizona's typical weekly earnings. The metro is a magnet for golfers and desert-lovers, with a thriving corporate scene headquartering over 1,400 international firms.
Las Vegas Airbnbs yield $312 per night on average, 43% of Nevada's weekly wages given the vast numbers of casino and entertainment tourists. Glendale, Gilbert and Chandler Arizona take 6th-8th place, generating 36-40% of state salaries through Airbnb rental income.
Virginia Beach comes in at #9, banking on its gorgeous shoreline, surfing culture and wildlife sightings. Nightly rates there run $332, 38% of average weekly earnings in Virginia. Rounding out the top 10 is Mesa, Arizona, an emerging Mormon hub and archaeology site earning hosts 36% of typical Arizona weekly pay.
Mortgage Mercy Coming?
Many real estate investors have a burning question - when will mortgage rates start dropping again? After the Federal Reserve's barrage of interest rate hikes to combat inflation, borrowing costs have hit painful highs, squeezing homeowners and homebuyers alike. But forecasters expect relief is on the horizon in 2024.
Economists largely agree that the Fed's rate-slashing campaign will likely commence in Q2 2024. The most probable timing is June, when policymakers meet to assess the latest economic trends. This forecast is based on projected inflation and unemployment rates, GDP growth, COVID-19 risks, and more.
The Fed began aggressively raising interest rates in March 2022, pushing their benchmark from 0.25% to over 5% currently. This, coupled with their quantitative tightening program, has successfully driven inflation down to 3.1% as of January. But with their 2% target still elusive, the Fed is hesitant to switch gears too hastily.
Chair Jerome Powell recently reiterated they want clear evidence of slowing inflation before cutting rates. This conservative approach aims to avoid reheating prices. However, the Fed must also weight its actions against economic impact. GDP grew just 2.6% last year, and forecasts predict a further slowdown to 1.9% in 2024, while unemployment ticked up to 3.8% by December.
Navigating these competing forces, analysts suggest varying timelines for potential Fed rate cuts. Some economist think quick and deep reductions are ahead, with 2 percentage points trimmed by end-2024. Others expect more tempered cuts of around 1 percentage point in the same timeframe. The speed and scale will come down to how inflation and the economy shape up.
So while the timing is still uncertain, signs point to mortgage relief on the horizon by mid-2024 or shortly thereafter. Investors and homeowners alike will welcome lower rates, though the Fed will remain cautious of reversing recent inflation progress.
Your Future AI Travel Butler?
Airbnb stunned investors recently by unveiling their vision to evolve far beyond vacation rentals. Speaking on the company's latest earnings call, CEO Brian Chesky explained how artificial intelligence could enable Airbnb's expansion into entirely new markets. This ambitious high-tech strategy hints at a much bigger future version of the platform.
While Airbnb's core business of facilitating short-term housing rentals continues humming along profitably, Chesky revealed sweeping plans to leverage AI. He wants to transform Airbnb into a personalized concierge-style service anticipating and fulfilling traveler needs.
Imagine an ultra-intuitive app that automatically recommends destinations and activities catered to your tastes. Or it could schedule local services like house cleaning and grocery delivery to make your trip more enjoyable. Chesky believes AI-driven customization could unlock global growth opportunities in high-demand areas like experiences and services.
This expanded vision would diversify Airbnb's earnings beyond just hosting commissions. By becoming an indispensable one-stop shop for travelers, embedded in millions of trips from planning to post-stay, Airbnb aims to capture greater customer wallet share.
The AI capabilities being developed to power this futuristic concierge include cutting-edge natural language processing, predictive modeling, automation and more. While skeptics may dub this vision fantastical, Airbnb has cultivated a reputation for disrupting complacent industries. With changemakers like Chesky at the helm and promising early AI prototyping underway, investors and travelers alike should buckle up for the next evolution of innovative luxury experiences.
🔥 Deal of the Day! 🔥
This majestic retreat within the gated Tillman Creek community offers a luxurious and spacious sanctuary, boasting over 4,000sf of well-appointed space including 4 bedrooms, a sleeping loft, 4 bathrooms, and a converted game room, set against the stunning backdrop of the Stuart Mountains, making it an idyllic vacation rental for those seeking comfort, privacy, and breathtaking natural scenery.
Airdna data:
Estimated monthly payment: $8,977/month (if financed)
Estimated monthly revenue: $9,475/month
Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.
That's it for today! Let me know what other property topics you want covered.
Until next time, Brett.