United States: The U.S. short-term rental market saw strong demand in the new year, with 19.8% more room nights in December 2022, outpacing the 16.7% growth of a year to year in November, according to provider of short-term rental data and analyticsAirDNA.
AirDNA reported that while growth in new listings slowed from the high levels seen earlier in the year, occupancy levels in December narrowed the year-over-year gap to its lowest level. closer since March, at 1.2% below 2021 levels.
In 2022, Short-term rentals in the United States generated more than $62 billion in revenue, a 25.1% year-over-year increase, with nearly 200 million room nights and more than two million listings with at least one booking. Overall occupancy for the year ended at 58.7%, an expected decline from 2021’s 61.3% caused by pent-up demand from the pandemic and a lack of supply in rentals at short term and traditional hotels.
December’s strong performance is a positive sign for the industry heading into 2023, with widespread demand growth and the top 50 markets seeing significant year-on-year growth.
Markets such as Phoenix/Scottsdale and Las Vegas have seen consistent gains over the past two years with December continuing the upward trend. The northeast Atlantic coast has also seen increased interest in vacation rentals, with Long Island and Cape Cod taking the top spots for demand growth as opposed to Florida, in many cases constrained by closures. off-season, which were typically among the lowest markets for demand growth. .
In 2022, supply growth was a major trend in the short-term rental sector, with record 1.39 million listings available in July. After years of struggles in major markets, gains in December pushed the total number of listings available across the top 50 markets above 600,000 for the first time since January 2020.
Average monthly available listings for all of 2022 were 22% higher than 2021, creating strong headwinds for occupancy and revenue per available rental. [RevPAR] leading to the so-called Phenomenon “Airbnbust” felt by some guests.
Average daily rate [ADR] Year-on-year growth slowed in December compared to November, due to lower occupancy, a strong comparison year and slowing inflation, according to AirDNA.
Large cities and suburban areas saw a significant slowdown in ADR gains, while small and medium cities were able to maintain moderately high growth. In mountain/lake destinations, ADR growth only increased by +0.7% year-on-year and could turn negative in the coming months.
The upcoming Super Bowl is expected to have a significant impact on both short-term rental demand and the rate in the Phoenix area, which is already having a great year: demand is expected to be about 30% higher year-over-year in the weeks before and after the Super Bowl, with a 47.7% increase in nights booked over last year on Super Bowl Sunday.
Additionally, ADR is expected to be 10-20% higher YoY in the first week of February, with a sharp jump to 35.5% on Monday February 6 and growing 82.9% YoY. February 12. [Super Bowl Sunday]. This equates to a premium of around $340 over the corresponding Sunday in 2022.
Although winter bookings are somewhat subdued overall, with 12% more nights booked than last year for February and March, guests are starting to arrive early for their beach getaways, with bookings in main coastal destinations up 42% compared to 2019 for May and June.
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