VRMA Administrator
The U.S. short-term rental (STR) industry is poised for continued expansion despite a possible recession, according to AirDNA's 2023 outlook report. The analysis expects STR demand to grow 5.5 percent next year, or 25 percent of its 2022 growth level, while average rates will hold at current levels of +1.7 percent. AirDNA predicts 9 percent growth in available rental inventory in 2023, tempering gains from the first half of 2022. STR stock was up nearly 25 percent higher in the third quarter than its 2021 levels, and while this growth has decelerated lately as STR premiums narrow, investors may be strengthened by the Federal Reserve's more measured rate hike schedule and depreciating home prices. "The STR landscape has been through a major transformation, shifting from concentrated demand in dense, popular cities to less-populous areas underserved by traditional lodging," stated AirDNA's Jamie Lane. "While demand for this winter in large urban markets is still lagging 26.7 percent behind pre-pandemic levels, small towns and rural markets have doubled their 2019 future booking levels." Occupancy is expected to drop to 56.4 percent next year, still topping 2019's 53.3 percent rate.
PRNewswire (12/13/22)
