US: In its latest industry outlook, short-term rental data and analytics provider, AirDNA, is forecasting that US short-term rentals will reach 2.6 per cent more demand in 2021 compared to 2019, and is expecting 14.1 per cent more growth in 2022 compared to 2021.
Average earnings for US short-term rentals grew to their highest ever in 2021, a full 35 per cent higher than at the start of pandemic and even outpaced home prices, which have risen 24.8 per cent over the same period. On average, a listing earned around 26.2 per cent more revenue in 2021 compared to 2020.
Jamie Lane, VP of research at AirDNA, said: “Over the past two years, hosts have adapted to changing demand by removing listings in markets where travellers have yet to return and investing in new homes where demand is greatest.”
Increased home prices and weak demand in urban areas drove supply growth to be weaker than anticipated [+ two per cent vs prior forecast of 9.4 per cent] although this led to a higher occupancy rate averaging at 60.2 per cent for the year. 2021 became known as the year of the “never-ending” summer with destination markets reaching peak season months earlier than normal and extending later than ever before.
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The pandemic has accelerated short-term rentals into the mainstream. Demand is already ten per cent higher than pre-pandemic, the industry is generating 40 per cent more revenue, all with ten per cent fewer listings. The emergence of new variants such as Delta and Omicron further delayed employees’ return to the office, making the flexible travel and remote work trends brought by the Covid-19 more permanent.
AirDNA CEO Scott Shatford said: “Demand for unique travel experiences and flexible work, coupled with favourable economic conditions for homebuyers has created greater interest to invest in vacation rentals. With over six million existing home sales expected in 2022, there will be many opportunities for growing short-term rental markets in the United States.”
While domestic travel will likely remain a firm favourite for travellers, new emerging markets such as South America have seen the highest increase in supply over the past two years [+11 per cent], benefiting from US visitors attracted by low costs of living, temperate climates and similar time zones. Advance bookings, unique experiences and larger homes have established themselves as top priorities in any traveller’s plans.
Read the full 2022 Outlook Report at this link.