AirDNA's mid-year outlook report stated that strong economic fundamentals and continued enthusiasm for travel have raised the demand growth forecast for 2023 to 10.4 percent year-on-year, up from 5.5 percent. Recovery from a mild downturn will sustain demand growth at 8.5 percent in 2024, according to AirDNA's findings. While mortgage rate increases and declining occupancy have slowed supply growth, lower house prices and sustained high demand have boosted the supply forecast to 14 percent year-on-year in 2023, up from 9 percent. Overall, 2023 occupancy will be between pre-pandemic levels and those seen in 2022, forecasts AirDNA. The economic recovery in 2024 will further slow the decline to 2 percent, with an occupancy level of 57 percent.
Skift (06/14/23) Srividya Kalyanaraman
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