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Airbnb Isn’t Dead — But It’s Changing.
Here’s How Glamping Fits In.
Seeing a Drop in Your Short-Term Rental Bookings? You’re Not Alone.
If you’ve noticed your occupancy rates slipping, bookings slowing down, or revenue becoming unpredictable — and you’re not sure why — you’re not imagining things. There’s a shift happening in the short-term rental world, and it’s leaving many Airbnb, VRBO, and Booking.com hosts scrambling for answers.
We came across a helpful video from the Econofin channel that dives into what’s really going on behind the scenes — including a growing oversupply of short-term rentals, rising costs, and mounting regulatory pressure. It paints a clear picture of the storm many hosts are facing right now.
But here’s the good news: this market disruption may also be an opportunity — especially for those ready to pivot to more sustainable, experience-driven models of hosting.
That’s why we believe glamping domes are uniquely positioned to rise above the instability and oversaturation happening across traditional short-term rentals.
Image 1. While traditional short-term rentals become harder to differentiate, glamping domes offer a one-of-a-kind stay guests remember — and come back for.
Right now, the short-term rental world — including Airbnb and vacation rentals — is going through a tough time, with five major problems happening all at once:
1. Decline in occupancy. The national average occupancy rate for short-term rentals has fallen to just 48.3% — down from 61.7% in 2022. That means the average listing is sitting empty more than half the time, making it harder than ever for hosts to cover costs, let alone turn a profit.
2. Running a rental has become a lot more expensive. Property insurance for short-term rentals has increased by an average of 34.2% nationally since 2023. In addition, all maintenance costs, like cleaning services and property management fees, have seen double-digit increases.
3.Tougher Local Laws. More cities and counties are adding strict rules and limits for short-term rentals. In just the last year and a half, over 340 places have added new restrictions, making it harder for hosts to operate — and cutting into profits.
4. Market saturation—too many listings. There’s been a huge increase in the number of rentals on Airbnb and VRBO — up nearly 24% in one year. More competition means hosts are lowering prices, and it's harder to stand out.
5. Financing structures are starting to unravel. Many short-term rental properties were purchased using risky or interest-only loans. Now that bookings are dropping and mortgage rates are rising, those financing structures are beginning to fail — and some hosts may be forced to sell.
Image 2. Rising costs and decreased occupancy rates are forcing many short-term rental owners to list their properties for sale.
But what led so many people to invest in short-term rentals in the first place? To really understand the current pressure on hosts, it helps to look back at how many of these properties were originally financed — especially during the pandemic years, when the market looked much more promising.
Low-Interest Mortgages. With mortgage rates as low as 1.5% to 2.5% in Canada and the U.S., there was a gold-rush mentality among investors. Many rushed to purchase second homes or investment properties, assuming rental income would easily cover the payments — without fully accounting for future interest rate hikes or downturns in demand.
Interest-Only Loans. Some buyers used interest-only mortgages, meaning they only paid the interest (not the principal) for the first few years. This lowered monthly payments in the short term but left them exposed if rental income slowed — which it now is.
Adjustable-Rate Mortgages. Many opted for short-term ARMs (3 or 5 years), which offered low initial rates but were set to reset higher later. Now that interest rates have surged, these same owners are facing steep payment increases — at the worst possible time, with occupancy declining.
Personal Loans / Credit Cards. Some people even financed renovations or furnishing costs using personal lines of credit or credit cards — counting on quick returns from short-term bookings.
House Hacking / Secondary Homes. Others bought second homes or vacation properties, intending to "house hack" (live in part of it, rent the rest) or rent it full-time on Airbnb to subsidize their lifestyle.
What seemed like smart financial moves during the low-rate years are now becoming a burden. Many of those pandemic-era loans are coming up for renewal — with much higher interest rates.
Mortgage payments are increasing sharply — with many investors now facing monthly hikes of $1,200 to $2,800 per property, particularly those with variable rates or adjustable-rate mortgages (ARMs).
At the same time, bookings are down, and local regulations are tightening, making it harder and more expensive to operate legally.
The result? Some short-term rental owners can’t even break even — and we’re starting to see a wave of panic selling and foreclosure risk in oversaturated markets.
Image 3. Same property, different market: Rising costs and falling occupancy have slashed cash flow by over 90% for this Scottsdale Airbnb.
As more owners struggle to keep up with rising mortgage payments and shrinking revenue, panic selling is expected to surge. Current projections estimate that between 1.5 and 2.3 million short-term rental properties may return to the long-term housing market within the next 24–36 months. If you’re a homeowner in a community with a high concentration of short-term rentals, it’s important to understand: your property value could be affected — even if you’ve never hosted a guest. In simple terms, if your neighbourhood is filled with underperforming or vacant short-term rentals that are now being sold off, your home's value can drop just by association.
The current disruption in the short-term rental market — with Airbnb revenues declining and overleveraged properties flooding the resale market — presents a unique moment in time.
Yes, there’s a challenge: Many investors are losing money, particularly those who purchased at peak prices and are now squeezed by rising costs and falling rental income.
But there’s also opportunity: For savvy, patient, or well-capitalized investors, this downturn opens the door to acquire distressed assets at discounted prices, or better yet — to pivot into less saturated, fast-growing niches like glamping and experience-driven stays.
The coming years will create wealth-building opportunities not seen since the aftermath of the 2008 financial crisis. After the 2008 crash, property values plummeted, and those who had the capital to invest in real estate during that time often saw huge gains as the market recovered. As the short-term rental bubble deflates, more listings will be sold below market value. Investors with a long-term view (especially those entering with low debt and unique offerings) could position themselves for major gains as the market stabilizes and resets.
Image 4. In every downturn lies the blueprint for something new. The next great investment isn’t always built — it’s imagined first.
Over the past decade, the short-term rental market flourished — transforming how people travel, invest, and experience destinations. It created wealth for countless hosts, revitalized neighborhoods, and introduced a more personal, authentic alternative to hotels. But today, we’re entering a new phase — one defined not by rapid growth, but by uncertainty. With occupancy rates declining, regulatory pressures increasing, and overleveraged properties entering the market, fear is beginning to dominate the conversation around short-term rentals. For many, this feels like the end of an era. But for those willing to think differently, this is the beginning of a new opportunity — one rooted in meaningful, sustainable, experience-driven travel. As traditional rentals become oversaturated, glamping domes and eco-retreats stand out not just as a trend — but as the future of hospitality.
Why Dome Tents Offer a Smarter, More Sustainable Investment.
In today’s uncertain rental landscape, glamping domes offer a fresh, flexible alternative — with far lower upfront costs, faster returns, and growing traveler appeal.
Low Barrier to Entry. Installing a geodesic dome tent costs a fraction of what it takes to buy or renovate a traditional property — making it ideal for investors looking to enter the market without taking on massive debt.
Fast ROI. Depending on the location, setup, and experience offered, many dome owners see a return on investment within 1–3 years. And because these structures are portable and modular, expansion is far easier than with brick-and-mortar builds.
Experience-First Stays. Travelers today crave connection, nature, and novelty — not just a place to crash. Dome tents deliver all three, offering memorable, immersive escapes that stand out in a sea of standard rentals.
Eco-Friendly and Scalable. Whether it's a single yoga dome in the forest or a full glamping site with multiple domes, these structures appeal to guests looking for sustainable, off-grid adventures — while allowing owners to grow at their own pace.
In a market where traditional rentals are becoming harder to sustain, glamping domes aren’t just a smart response to disruption — they’re a future-proof opportunity.
Image 5. Real results. Real retreats. This stunning dome in Québec blends comfort, nature, and smart design — the kind of experience today’s guests are seeking.
Ready to explore your own dome project?
When you place an order, we’ll work with you to create a custom 3D draft to help visualize your setup before production begins. Want to get inspired in the meantime? Browse our dome tent kits and see what’s possible.
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🎥 Watch the full video by Econofin here: The Airbnb Apocalypse - YouTube
Follow @EconofinUSA on Instagram for more insights.
Disclaimer:
This blog post is provided for informational and educational purposes only and does not constitute financial, investment, or legal advice. The Glamping Dome Store does not offer professional consulting services. Readers are encouraged to conduct their own research and consult with licensed professionals before making any investment or business decisions related to short-term rentals, glamping, or real estate. Use of this information is at your own discretion and risk.
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The photos featured in this blog post are from real businesses that have purchased our dome tents, including:
Image 1 - Burnstick Lake Resort (Caroline, Alberta, Canada).
Image 5 - 29.5 FT (9 m) dome tent (Levis ,Québec, Canada).
