Overall short-term rental occupancy levels for August hit an all-time high of 66.8%.
Variable Performance Rates for Short-Term Rentals Across the Country
Words such as Google and Airbnb are part of our daily vocabulary. So, not to worry when user rates of these words fluctuate. The “doing” of Googling and Airbnbing are here to stay.
It’s true, according to the short-term rental analytics company AirDNA, that short-term rental demand in August dropped below 2019 levels for the first time since April 2021.
But think about it. Many owners of Airbnb properties didn’t list their properties during August because they wanted to use their properties themselves. Additionally, many users of Airbnb rentals didn’t “search for, ask about, or demand” listings in suburban or mountain or lake destinations in August because families geared up for returning to school for the first time in 18 months.
Despite cooling demand and despite less supply (down -40% compared to August 2019), overall short-term rental occupancy levels hit a record high for August of 66.8%.
Some Destinations Up and Some Destinations Down in August 2021 Compared to August 2019
Major cities in the South and Southwest saw higher short-term rental demand in August 2021 compared to August 2019. Take a look:
- Houston – +30.2%
- Fort Lauderdale – +25.9%
- San Antonio – +18.8%
- Dallas – +15.2%
- Phoenix/Scottsdale – +12.3%
Major coastal cities saw lower demand in August 2021 comparatively, such as:
- New York – -53.9%
- Los Angeles – -51.7%
Cancellations due to extreme weather events and the Delta variant rose in August 2021. The governor of Hawaii asked visitors to limit their travel to the state for “essential business activities only.” Wildfires in the Pacific Northwest impacted short-term rentals in Northern California and Oregon. Hurricanes on the East Coast impacted Louisiana, Florida and Rhode Island.
Short-Term Rental Demand Up +18% This Fall and Winter
Despite traditional Christmas holiday travel demand being off by 30-60% this year, Thanksgiving bookings are already up +38% over the same period in 2019.
Winter hotspots in Florida such as Orlando, Panama City, Key West and Santa Rosa/Rosemary Beach are seeing current demand come in at more than double 2019’s numbers.
Agents – Help Your Clients Maximize Short-Term Rental Property Opportunities
The short-term rental companies have expanded their worldwide footprint to over 5.6M listings. This huge market offers you and your clients opportunities to develop lucrative short-term rental properties and for you to grow your relationships with your clients.
Here are some things you as an agent can do to help your clients (and you yourself) maximize short-term rental bottom lines:
- Provide guidance on ever-changing local regulations on short-term rentals – this is critical
- Provide tips on current market forces
- Recommend your trusted network of contractors, sub-contractors and property management companies
- Recommend important amenities that Airbnb renters want such as open, clean designs with natural light, strong Wi-Fi, kitchen access, private bathrooms, private entrances, family friendliness, etc.
- Neighborhood knowledge such as great restaurants, parking, parks, activities, etc.
- Outdoor and private spaces with amenities such as fire pits, outdoor lighting, meditative gardens
- Home office spaces with ergonomic chairs, coffee and tea stations, dedicated laptop desk spaces, etc. as longer-term tenants/working nomads are growth opportunities for rental properties
Thanks to AirDNA and Inman.