The New York Times reported the cabin boom may be waning in Hochatown, Oklahoma

Hochatown is back in the news spotlight this week as an example of how small towns have flourished through the onset of Airbnb rental homes.

The town built by Airbnb, as Hochatown Mayor Dian Jordan stated to The New York Times, hopes to eventually collect $1 million in tax revenue monthly. It collected its first sales tax check in September for $456,000, after becoming incorporated a year ago.

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"For a town of a few hundred people, this number is astronomical," David Francis, the business registration manager at the Oklahoma Tax Commission, told The New York Times. "The town is basically one giant Airbnb."

The town of 219 — just north of Broken Bow, with Broken Bow Lake directly to the east — becomes laden with as many as 50,000 visitors on the weekends.

But, The New York Times reported, the supply of luxury cabins for rent may finally be higher than the demand. Before the pandemic, there were 400 cabins for rent in the then-unincorporated area. Now, there are 2,400, a 413% increase over 5 years.

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What's next for Hochatown Airbnb hosts as demand wanes?

Moon Rise Cabin, a rental cabin in Hochatown, north of Broken Bow in southeast Oklahoma.
Moon Rise Cabin, a rental cabin in Hochatown, north of Broken Bow in southeast Oklahoma.

The New York Times reported that for the first time since the pandemic recovery, the supply of Airbnb rental homes is outpacing demand. Supply increased 19% year over year, while demand increased just 14%.

In Hochatown specifically, the boom has apparently slowed. Occupancy was low at 55% in March and 40% in August.

For sale listings that once sold in a matter of hours now are taking months.

One cabin, called "California Dreaming," was sold for $590,000 in 2020. In 2021, the owners sold it for $1.1 million. It was re-listed in 2022 for $1.299 million, but the asking price is now down to just $899,000.

Cabin owner Leo Winegar told The Times he was struggling after getting his cabin ready to rent only after demand had started decreasing.

“I hope I don’t have to sell the cabin,” Winegar told The Times. “We still have a bit of savings. If Airbnb could just promote our listing a bit more, maybe even lower their fees, I think I can make it.”

This article originally appeared on Oklahoman: Demand for Hochatown cabins is now low, The New York Times reported