AirDNA yesterday released its 2024 Best Places to Invest report. This essential guide pinpoints the most promising markets for investment this year, identifying U.S. hotspots where investors can maximize returns.
2023 was a dynamic year in the U.S. short-term rental (STR industry). Over the past 12 months, we saw the most in-demand month on record; July marked nearly 24 million nights stayed, September racked up the largest-ever number of available listings in a month with 1.64 million, and annual revenue reached its highest amount yet at approximately $64 billion.
The Anticipated Gradual Decline in Inflation and Stable Economic Forecast for 2024 Are Set to Positively Influence STR Market Dynamics. Average Rates Are Expected to Rise by 2.1%, Which Will Drive a 1.9% Increase in RevPAR. Occupancy Rates, After Declining from Their 2021 Peak, Should Stabilize Around 54.7%, in Line with 2023 Levels.
This report uses aggregate data (2018 - 2023) to examine changing trends in supply, demand, and ADR for vacation rentals and hotels in the United States. AirDNA contributes data on short - term rentals (STRs), while STR/CoStar provides traditional hotel data. Using these comprehensive data sets, AirDNA also forecasts industry trends in the second half of 2023 and into 2024.
Arrivalist pioneered the use of location data in the travel industry, using its patented technology to create bold insights into the way travelers interact with destinations.
AirDNA's demand forecast for 2023 has increased to 10.4% year-over-year (YoY) growth, doubling expectations from the start of the year.
AirDNA's latest monthly market review indicates this summer will be the strongest on record, with booked vacation rental demand already up 10% from last year's highs. And travelers are planning ahead for their stays: March 2023 saw the highest number of nights booked for future travel of any month on record—more than 21 million.
AirDNA's 2023 outlook report confirms that the U.S. short-term rental (STR) industry is poised for further growth, remaining strong in the midst of a possible recession.
The economy has been quietly adding hundreds of thousands of new jobs, and AirDNA data shows that Short-Term Rentals demand and bookings are actually up over 2021.
Q2 2022 is looking even better, with booking pace 88% higher than 2021.