AirDNA: STR demand and supply accelerate in the USA
US: The US short-term rental market experienced a surge in demand, supply, and rates in February 2023, according to a new report from data and analytics provider, AirDNA.
Despite the typically low demand during this month of the year, STR guests tallied 12.9 million nights stayed in February, up 17.9 per cent year over year [YoY], while 18.3 million nights were booked for future stays, up 14.8 per cent from last year.
Meanwhile, available listings hit 1.27 million, up 26.1 per cent, pushing occupancy down just 1.8 per cent from last year’s highs.
According to AirDNA, the largest supply growth was observed in large cities, with both urban and suburban areas seeing more than 30 per cent growth YoY. On the other hand, supply growth is slowing in mountain / lake and coastal markets, where prohibitive costs cutting into profits are making it harder for newcomers to invest.
Small city / rural markets saw the highest demand growth YoY at 25.1 per cent, though there was huge growth out of season in Long Island [114.9 per cent demand growth YoY] and Cape Cod [73.6 per cent], which usually see very low bookings in February. Despite hosting the Super Bowl, Phoenix / Scottsdale came in third with 60.3 per cent YoY demand growth.
Average daily rates rose 5.9 per cent YOY to $327.90, the highest growth rate since October, though suburban and small city / rural locations both nearly doubled their growth rates from January to 11.4 per cent and 12 per cent higher, respectively.
Looking ahead, with 39.6 million nights booked in January and February [2.4 million more than last year], 2023 looks set to be a strong year for short-term rentals in the United States. Future bookings are pacing up 11-12 per cent for the next months from last year’s records, except for a slight dip in April [eight per cent] due to the tough Spring Break comparison.
Spring Break travel a welcome boost
Orlando tops the list for short-term rental demand for this year’s Spring Break, even though this is 15 per cent down from last year, followed by Phoenix / Scottsdale [+38.2 per cent], where demand has been growing at breakneck speed throughout the past 12 months. Tourist mainstays Gatlinburg / Pigeon Forge, Tennessee [+15.1 per cent], and Panama City, Florida [+12.6 per cent], as well as warm-weather hotspot Miami [+1.9 per cent] finish the top five.
AirDNA data showed that the highest growth in demand is, surprisingly, in large cities such as Jersey City / Newark [41 per cent], Chicago [38 per cent] and Minneapolis [38 per cent], all seeing a boost compared to last year.
Finally, the Coachella Valley is seeing the highest rates for March / April thanks to the eponymous music festival [$593.73], although the highest ADR Growth is observed in Cape Cod and Boston [up 32.1 per cent and 18.7 per cent respectively].
Follow this link to read the AirDNA report for February in full.