The Luxury and Large Property Premium

The data is already showing a clear divergence in property performance. I’m seeing it in my own properties right now. The rental market is splitting: Average Daily Rates (ADR) for luxury-tier and larger multi-bedroom properties grew by over 5% year-over-year, while smaller budget-level properties saw rates flatten or even decline (-0.3%).


Why the split? Large beach houses naturally appeal to the larger, multi-generational or friend groups driving the market. For example: If a house costs $800 a night but easily sleeps 12+ people, the per-person, per-night cost is only $66. “Grouping up” allows guests to pool their money, making high-end properties highly resilient to inflation.

If you own houses that sleep 12-20 people, your pricing power is relatively safe because groups split the bill. 

Be Careful

If you're looking to deploy capital into a high-margin asset that resists inflation, navigating the tight inventory of 5+ bedroom homes requires a specialized approach.

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