Short-term rental demand is up, investors are earning more revenue and summer bookings are up +7.9% y/y.
Most All of Short-Term Rental Markets Back to 2019 Demand Levels
A new report by the short-term rental market data tracker AirDNA indicates that short-term rental demand in 2022 is on pace to hit record levels.
Investors in the short-term rental (STR) space are clicking their heels. According to AirDNA’s latest report, revenue has increased by 66% since 2019, average daily rates (ADRs) have increased by 33% and demand has increased by +25% y/y.
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AirDNA’s report said, “All but just a handful of top 50 STR markets have fully recovered demand back to 2019 levels.”
That being said, occupancy rates were down slightly in April compared to last year primarily due to investors adding more short-term supply. And though bookings were down -3.6% in April, AirDNA expects April “…to be the last month where bookings will fall below 2021 levels. As was the case last month (in March), most of the weakness in occupancy stems from increases in the nightly supply of listings and not from systemic weakness in demand.”
Demand in small cities and rural areas was up in small cities and rural areas in April. Supply was up +32%.
Big City Rebound
AirDNA noted that occupancy levels rose +4.9% y/y in big cities. Specifically, occupancy jumped +37.5% in Washington DC, +24.1% in Boston and +19.7% in New York City.
“A full recovery in demand to pre-COVID levels (in big cities) seems elusive, though, with very little improvement in demand relative to 2019 levels,” said this AirDNA report. Demand in Boston and New York, though substantially up, remained about 50% of what it was in 2019 and 27% lower in Washington.
Prices Rising
Average daily rates (ADRs) in April jumped +10.6% m/m and +11.6% y/y nationally. Prices in mid- to large-sized metro areas increased +15% y/y.
The AirDNA report said, “The overall rate of ADR growth should moderate some as we head into summer. As of mid-May 2022, ADRs are pacing +7.9% higher for the summer than last year. In coastal destinations, ADRs have risen +12.1% y/y.”
Meanwhile, Airbnb has chosen to remove its China’s domestic listings after six years of negligible efforts. The company will maintain its presence in China by focusing on outbound travel initiated by Chinese residents.
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Thanks to AirDNA.
