On The Market
Short-Term Rental Demand Returns, So Why Are Hosts Making Less? w/AirDNA Chief Economist Jamie Lane
Aug 12, 2024
Jamie Lane, Chief Economist at AirDNA, dives into the shifting landscape of short-term rentals. He discusses the unexpected stability in the market, countering fears of an ‘Airbnbust.’ Despite rising demand, hosts are seeing lower revenues. Lane highlights growth potential in certain markets and points out oversupsupplied areas losing traction. He shares strategies for increasing bookings through enticing amenities and pricing adjustments, while also shedding light on the booming European vacation rental scene.
44:49
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Quick takeaways
- The short-term rental market is stabilizing post-pandemic with varying demand trends, particularly impacting lower-tier properties under $125 per night.
- Emerging opportunities exist for investors in mid-sized cities with lower hotel supply, contrasting with declines in traditional vacation rental destinations.
Deep dives
Current State of the Short-Term Rental Market
The short-term rental market is currently experiencing a phase of stabilization after the fluctuations seen during the pandemic. Occupancy levels have remained relatively flat, with demand showing steady growth compared to prior years. Average Daily Rates (ADR) have also stabilized, suggesting that hosts are earning similar amounts now as they did in 2023, though earnings are lower than the peaks of 2021 and 2022. This situation indicates that while the market is not in a crisis, the unprecedented growth seen during the pandemic is normalizing.
