Record July for US STRs boosted by last-minute bookings
US: With school out for the summer, July 2022 was another record month for short-term rentals in the United States: over 23 million nights were stayed, 18.2 per cent more than last year’s previous record, according to short-term rental data and analytics provider, AirDNA.
Available supply topped 1.39 million listings, up 10.5 per cent from 2019, as the slowing housing market has not yet had an effect on new short-term rental listings, with 80,000 more added in July — the same as June.
Thanks to increased supply, occupancy was down from last year 7.5 per cent to a still relatively high 69.1 per cent country-wide, +12 per cent from 2019.
Changing booking patterns
Growth in average daily rates [ADRs] continues to slow, with prices in July up just 3.7 per cent year-over-year to $307 per night nationally. Rates have dropped the most in the luxury price tier, -4.6 per cent YOY, while prices increased in the economy [+9.1 per cent] and budget [+16.1 per cent] tiers.
The return of international travel may be reducing demand for luxury properties as US travellers take advantage of the strong dollar to spend abroad, while lower-priced properties remain a great option for those looking to save a little as interest rates rise.
Last minute bookings are up, with over 26 per cent of July stays booked in the same month. Bookings made within seven days before arrival were up 69 per cent from last year as guests looked for deals with more supply availability.
Strong outlook for small cities and urban centres
Bookings for the rest of the year are strong — up 13.7 per cent over the same time last year — though growth is expected to slow into the autumn as many return to the office and school in person and destinations revert to more traditional seasonality patterns.
Pacing is strongest in small city / rural areas [+22.3 per cent year-over-year] where strong supply growth sees relatively little competition from local hotels.
Meanwhile, urban areas are showing significant growth over last year [+18.6 per cent], but are still 32.5 per cent below 2019 levels.
ADRs are averaging up six per cent for the rest of the year, with the highest growth in mid-size cities [+12.5 per cent].
Read the AirDNA report in full at this link.
Read AirDNA’s latest European review here.
This story was originally posted on 24 August 2022, at shorttermrentalz.com
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