We had a big run up in stocks from 2016-2020. When markets turned, money that was in stocks went to real estate. Remember, bonds were still paying close to 0%, so options were limited. If you invested in RE, you not only got rents, but depreciation. When you sell, the IRS wants to recapture that depreciation, and they want cash. If you can find another property, you can postpone that claw back, but the whole thing gets complicated and the STR market, I think, will be in upheaval for awhile. If you're buying STR investments in vacation areas, I suggest not buying all in the same geographic, or market, area.
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