Short-term Rental Startup Sonder Cuts Staff 20%
Summary
This article discusses the challenges faced by Sonder, a large STR company, including staff cuts and financial losses due to economic changes. Hosts should pay attention to these market trends and consider diversifying their income streams to navigate potential downturns in the STR market.
Key Insights
- •The article emphasizes the importance of diversifying income streams to handle economic downturns and fluctuations in the STR market, suggesting hosts explore various strategies for financial resilience.
- •Sonder, a major STR company, cut its workforce by 20% due to economic factors and market fluctuations, highlighting the impact of rising costs and changes in the real estate market on larger STR businesses.
Action Items
- ✓Consider diversifying your income streams within the STR business, such as exploring mid-term rentals or other investment opportunities to manage economic risks.Effort: mediumImpact: medium
Tools & Resources
- →Freewyld Foundry: Freewyld Foundry is mentioned, offering revenue management services.
- →Get Paid For Your Pad: Get Paid For Your Pad (GPFYP) is mentioned throughout the article, covering topics relevant to short-term rentals.
- →Airbnb Starter Guide: The article mentions a free Airbnb Starter Guide.
- →STR Profit Academy: STR Profit Academy is referenced.
Related News
The Most Encouraging Sign in 3 Years | Dec. 2025 Housing Market Update
This BiggerPockets article discusses the December 2025 housing market update, highlighting a potentially encouraging sign for the housing market with improving affordability due to relatively flat prices and declining mortgage rates. Hosts should pay attention to regional market differences, particularly in Florida and the Gulf region, and consider refinancing if they have mortgages with higher interest rates.
Middle East Leads Global Travel as Live Tourism Fuels Record Growth
The Middle East and Africa experienced an 8% increase in travel growth in November, driven by live events and expanded connectivity. Hosts in those regions may benefit from this travel surge. Consider adjusting pricing or marketing strategies to capitalize on increased demand.
Redfin: The Great Housing Market “Reset” Starts in 2026
According to Redfin, the housing market will "reset" in 2026, leading to improved affordability and a more normalized market. For STR hosts, this may mean a shift in pricing strategies and the need to adjust to potential changes in demand. Stay informed about market trends and be prepared to adapt your approach to maintain cash flow.
Mortgage applications fall 5% despite rate decline
Mortgage applications decreased despite a slight drop in interest rates, and home sales are expected to see modest growth in 2026. Hosts can watch for potential shifts in the housing market, which may affect demand and pricing strategies. Review your pricing strategy for the coming year.