Key Highlights
- Demand for urban short-term rentals down -55% y/y
- Demand for resort & destination short-term rentals jumped +15.5% y/y
- Overall, occupancy rate for short-term rentals up +5.8% y/y
The Good News – Short-Term Rentals in Resort and Destination Markets Increased +15.5% y/y
Just as home sales in resort and destination markets took off in 2020, so did short-term rentals. Short-term rentals in resort and destination areas jumped up +15.5% y/y, according to the inaugural monthly report by the newbie short-term rental analytics firm AirDNA.
According to Jamie Lane, vice president of research with AirDNA, said, “Short-term rentals demand in destination markets is exceeding all expectations…” despite many second homeowners keeping their properties off the rental market due to the COVID pandemic. “Properties that remain on the market are now able to raise their rates due to a lack of available inventory in many high demand rental markets.”
Scott Shatford, CEO and founder of AirDNA, seconded Lane’s analysis. “Markets that provide the opportunity for outdoor adventure drove bookings…not surprising all three of our top markets for new bookings are near national parks, Glacier, Acadia and Zion.”
The Bad News – Demand for Urban and Suburban Short-Term Rentals Down – A Lot
Urban short-term rentals during 2020 told a different story, however. They plummeted a whopping -55% y/y while suburban short-term rentals also took a significant hit, -33.5% y/y.
Overall, Occupancy Rates for Short-Term Rentals Nationwide Increased +5.8%
Overall occupancy rates for short-term rentals nationwide were up +5.8% y/y. The average occupancy rate for all short-term rentals came in at 47.9%. Average daily rates for short-term rentals increased +7.3% in December, less than the +12.3% increase in average daily rates in November 2020, but still an increase.
Top and Bottom Demand Markets for Short-Term Rentals in 2020
AirDNA noted that markets with the greatest annual growth in demand for short-term rentals reflected “guests” preferring to stay in destination markets that were drivable from large metros. These greatest annual growth markets included Gulf Shores/Mobile AL (+86.8%), Lower Hudson Valley NY (+84.9%) and Coachella Valley CA (+84.3).
High-traffic tourist markets saw the greatest demand declines.
Take a look at the Top and Bottom Markets for short-term rental demand, according to AirDNA:
Short-Term Rental Demand Top Markets 2020
Gulf Shores/Mobile AL +86.6%
Lower Hudson Valley NY +84.9%
Coachella Valley CA +84.3%
Big Bear CA +73.1%
Lake Tahoe CA +67.4
Short-Term Rental Demand Lowest Markets 2020
New York NY -55.9%
Maui HI -31.8%
Las Vegas NV -18.6%
New Orleans LA -18.2%
Oahu HI -16.6%
Thanks to AirDNA and Inman.
