Short-term rentals in big US cities are rebounding, with average occupancy rates in the 50 biggest metro areas climbing more than five percent in the first half of 2022 compared to last year, according to AirDNA's new mid-year short-term rental outlook report. Leading the resurgence of big-city demand are suburban rentals, stoked by longer-term stays of 28 days or more, while demand for urban centers was 21.6 percent lower in the first half of 2022 than 2019 levels. Urban occupancy then was also down 2.2 percent from 2019, making inner cities the only US location category where occupancy still trails pre-pandemic levels. US demand for short-term rentals across all locations is forecast to increase an average 20.3 percent from 2021 to 2022, topping the 14.1 percent increase AirDNA projected last fall. Urban recovery is expected to be driven by the revival of international demand, which is still about 50 percent below 2019 levels; yet international demand in the first half of his year surpassed levels across all US location types, and it constitutes 12 percent of all bookings in urban areas. AirDNA predicts that available US short-term rental listing nights will rise by 23 percent year-over-year, and US occupancy growth in the first half of 2022 exceeded 2019's level by 7.5 percent. "As we push into 2023, it's going to be much less recovery and much more organic growth of demand for short-term rentals," says AirDNA's Jamie Lane. "Yes, growth rates are slowing, but growth rates are generally going to be slowing across all aspects of the economy."
PhocusWire (07/11/22) Kathryn Walson