Investment has accelerated in the first half of 2022, especially in pandemic-favorite destinations such as mountain, lake, and rural areas. Listing totals are now projected to reach 21% growth for 2022, with AirDNA’s forecast calling for available supply to reach a record 1.4 million listings in 2023, up 8.6% from 2022.
Long-term stays of 28 days or more are helping to boost demand in suburban areas, up 10.8% from 2019, whereas their inner-city counterparts are still lagging 21.6% behind pre-pandemic levels. Urban centers are the only location type with occupancy still below 2019, though they have grown 5.2% year over year.
Data to Navigate Uncertainty
With hosts feeling the pressure of rising costs, average daily rates are forecast to rise by 6.3% this year. So far, these increases have exceeded inflation, but as occupancy rates continue to decline, competition to attract guests may push hosts to lower prices. In 2023, rates are expected to halve their growth.
“Despite relentless growth for U.S. STRs, turbulent trends are the new normal in the industry,” said AirDNA’s COO, Demi Horvat. “Leveraging data is essential for all industry stakeholders to turn these trends to their advantage and enhance their profitability through timely strategic planning.”
As international travelers from key feeder markets like Canada and the U.K. begin to return to the U.S., larger cities should benefit. For the summer, the majority of coastal and mountain markets are seeing demand even higher than last year’s record figures. With lead times still lagging behind 2019 levels, 2022 bookings are likely to end up surpassing their current pacing, showing the golden age of the STR sector is far from being over.
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SOURCE AirDNA
