After a frustrating 2023, 2024 is already looking to be a promising year for vacation rentals, based on Market Review’s early data.
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After an eventful 2023, AirDNA is predicting a strong 2024 for the short-term rental industry.
According to AirDNA’s 2023 edition, short-term rental space in 2023 will be up and down, with annual growth in demand slowing to 6.5%, while the supply of available room nights increased by 12.6% year-on-year. . US market review.
Regulatory challenges added to the challenge, with New York City introducing strict regulations on short-term rentals and STR inventory in the nation’s largest city plummeting. But instead of disappearing, much of that demand is moving across the Hudson River to New Jersey, AirDNA’s report found. According to the report, demand for short-term rentals declined by a staggering 46.1% throughout 2023, but demand in Jersey City and Newark increased by 53.7%, the largest jump in demand in the nation.
Last year also marked the end of the incredibly high occupancy rates that hosts and investors had enjoyed since 2021. Due to the significant increase in supply, occupancy rate fell 5.8% year-on-year to 49.9%, below pre-pandemic levels. Due to the increase in supply, average daily rates also fell by 2.4% to $311.09.
At the same time, 2023 was the busiest month on record, with nearly 24 million nights booked in July and the short-term rental industry effectively ending the year with a record $64 billion.
Based on early data, 2024 is already looking like a promising year for vacation rentals. Demand in January was 8% higher compared to the same period in 2022, and demand in subsequent months was already up 13% to 21% in each month up to June, compared to the beginning of 2023. This reflects the improving economic outlook for 2024. Many consumers were worried about an economic recession.
Two major upcoming events, spring break and the total solar eclipse on April 8, are expected to drive spring bookings, with bookings for April 8, which falls on Monday, up 225.8 percent.
“The total solar eclipse is expected to have a more fundamental impact on demand in small cities and rural areas,” the report said. “Stargazers are rushing to book idyllic retreats with great views of the sky.”
Email Ben Velde
