2022 U.S. Short-Term Rental Outlook: Industry Maintains Momentum in an Uncertain Era
DENVER - AirDNA's Industry Outlook forecasts that U.S. short-term rentals will reach 2.6% more demand in 2021 vs 2019, and expect 14.1% more growth in 2022 vs 2021.
Average earnings for U.S. short-term rentals grew to their highest ever in 2021, a full 35% higher than at the start of pandemic and even outpaced home prices, which have risen 24.8% over the same period. On average, a listing earned around 26.2% more revenue in 2021 compared to 2020.
"Over the past two years, hosts have adapted to changing demand by removing listings in markets where travelers have yet to return and investing in new homes where demand is greatest," commented Jamie Lane, VP of Research.
Increased home prices and weak demand in urban areas drove supply growth to be weaker than anticipated (+2% vs prior forecast of 9.4%) although this led to a higher occupancy rate averaging at 60.2% for the year. 2021 became known as the year of the "never-ending" summer with destination markets reaching peak season months earlier than normal and extending later than ever before.
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The pandemic has accelerated short-term rentals into the mainstream. Demand is already 10% higher than pre-pandemic, the industry is generating 40% more revenue, all with 10% fewer listings. The emergence of new variants such as Delta and Omicron further delayed employees' return to the office, making the flexible travel and remote work trends brought by the COVID-19 more permanent.
"Demand for unique travel experiences and flexible work, coupled with favorable economic conditions for homebuyers has created greater interest to invest in vacation rentals", said Scott Shatford, AirDNA's CEO. "With over 6 million existing home sales expected in 2022, there will be many opportunities for growing short-term rental markets in the U.S."
While domestic travel will likely remain a firm favorite for travelers, new emerging markets such as South America have seen the highest increase in supply over the past 2 years (+11%), benefiting from U.S. visitors attracted by low costs of living, temperate climates and similar time zones. Advance bookings, unique experiences and larger homes have established themselves as top priorities in any traveler's plans.
Click here to read the full 2022 Outlook Report
AirDNA helps hosts, property managers, and investors succeed in the short-term vacation rental market by turning rental data into actionable analytics. The Denver-based company has tracked the daily performance of 10 million vacation rentals in 120,000 global markets since 2014 to provide real-time market insights. Their range of online and exportable reports offer a solution for everyone in the industry to analyze trends, price rentals, identify new investment opportunities, and benchmark performance.
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