United States: The latest market study by short term rental data provider AirDNA posts another record month for short-term rental demand in the United States, with 26.6% more room nights than the same month in 2019.
It marked the strongest month for demand growth from 2019 levels since the start of the pandemic, thanks to robust power supplya slight drop in gas prices and the return of sports travel with the new college football season.
Occupancy remains down from 2021 highs, but in September was just 1.2% below last year’s record, after falling 4.4% in August. The decline in occupancy is mainly attributable to the addition of more than 70,000 new listings, despite the high interest rates observed in September, bringing the number of available listings to 1.38 million, or 23% of more than last year.
Listing growth has been highest in smaller markets: the top 50 cities have yet to collectively reach 2019 supply levels, even dropping slightly from August to September; while other markets are growing strongly.
Of these largest markets, the highest supply gains were in Texas and the Southwest. The Phoenix/Scottsdale MSA has seen 44% growth in registrations over the past year, followed by Houston [+43 per cent]San Antonio [+43 per cent]and Vegas [+36 per cent].
These markets also experienced steeper declines in occupancy than the national average as supply exceeded demand.
Inflationary pressures are increasing
Average daily rates [ADRs] increased by 5.6% compared to last year, a higher growth rate than in August [+2.7 per cent]and slightly above the consumer price index [5.4 per cent] after a few months below. This was pushed by prices in the luxury segment, which were about the same as last September [-0.2 per cent]after falling more than 5% in August.
As the purse strings tighten this winter with increasingly difficult economic conditions, it remains to be seen whether US travelers will take advantage of the weak euro to travel to Europe or stay closer to home.
Currently, bookings through December are looking solid, with growth of 14% year over year for October and December, and 17% for November, with Thanksgiving stays booked. However, the growth for 2023 is below 10%, which shows some hesitation to book further.
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