Categories: Business NewsFinanceNewsReal Estate & Properties

Tropical Storm Helene Disrupts Asheville’s Short-Term Rental Market

Aerial view of storm-damaged short-term rental properties in Asheville, NC

News Summary

Tropical Storm Helene has significantly impacted Asheville’s short-term rental (STR) market, resulting in a steep decline in rental availability and visitor hesitance. A report indicates a staggering 21% decrease in active STR listings compared to the previous year, with advocates suggesting this downturn could provide unexpected benefits for hosts and local residents. As the region recovers, the local economy, tourism, and housing market face uncertain futures amidst concerns of financial strain and changing visitor behaviors.

Asheville – Tropical Storm Helene significantly impacted Asheville and the broader Western North Carolina short-term rental (STR) market in late September, leading to a steep decline in rental availability and a hesitance among potential visitors. The storm caused extensive property damage and prompted numerous canceled bookings, resulting in a dramatic reduction in active STR listings in the area.

Following the storm, Tyler Coon, CEO of Savvy Realty, noted a steady decrease in the number of available short-term rental units. The decline was measured at about 3-4% in October, followed by a more pronounced 7% drop in November. Overall, more than 1,400 STR units exited the Western North Carolina market, revealing a staggering 21% decrease in active listings when comparing the years 2024 to 2025. This contraction represents the most significant downturn in the local STR market since the sector has seen growth over the past decade.

Despite the turbulent circumstances, some advocates within the STR industry believe the current challenges could lead to unexpected advantages for both hosts and local residents. These effects may provide opportunities that enhance visitor experiences in the longer term. The STR market previously saw considerable growth; from 2019 to 2024, hotel demand rose by 5%, while demand for vacation rentals soared by 57%, largely driven by travelers’ preferences during the COVID-19 pandemic. Many travelers sought private rentals as a safer alternative to traditional hotels, accelerating this trend.

However, in the wake of Tropical Storm Helene, the landscape shifted. There was a reported 23% decrease in vacation rentals and a corresponding 6% increase in hotel stays in December 2024 compared to December 2023. This change in visitor behavior can be attributed to several factors including property damage, accessibility issues caused by landslides, and prolonged outages of essential services like water and electricity. Consequently, STR occupancy rates, which typically hover between 65-70%, plunged to around 25-35% in October.

While lower-end rentals faced significant occupancy declines, higher-end properties with attractive amenities fared better, maintaining more stable occupancy rates. This disparity may yield unintended benefits, as the reduction in lower-end STRs could potentially increase the availability of affordable housing for low- to middle-income families seeking rental opportunities or home purchases in the area.

The downturn in the STR market could also reduce competition among rental hosts, potentially leading to more stabilized occupancy rates during traditionally slower months. Meanwhile, the Buncombe County Planning Board has temporarily halted discussions relating to STR regulations to concentrate on recovery efforts in the aftermath of the storm. Many STR operators are now considering transitioning their properties to long-term rentals to adapt to the uncertain tourism landscape.

The local tourism authority has projected that lodging revenues may remain depressed by approximately 30-45% over the ensuing months, due to the storm’s lasting impact. The financial implications extend beyond rental owners, affecting maintenance workers and other personnel connected to the STR sector. These economic pressures are driving many STR operators to contemplate a shift towards long-term rental arrangements to secure their financial futures.

Affordable housing advocates express concerns that the circumstances following Tropical Storm Helene could lead to market dynamics similar to those experienced in other disaster-ridden areas, potentially exacerbating housing availability issues in the community. The local rental market is feeling significant financial strain, with housing activity experiencing a slowdown as buyers increasingly seek opportunities outside the region.

As experts warn of ongoing national economic uncertainties affecting travel and hospitality spending, the future of the STR market and overall tourism in Western North Carolina remains precarious. As recovery efforts progress, the long-term consequences of Tropical Storm Helene on the local economy, tourism, and the housing market continue to unfold, leaving many stakeholders in the industry anxious about the path ahead.