Demand for short-term rentals surges past pre-pandemic levels

Activity in April was 5.4 percent greater than two years ago

National /
May.May 14, 2021 04:30 PM
April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)

April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)

It’s gearing up to be the best summer ever — for short-term vacation rentals.

Last month, demand for short-term rentals was 5.4 percent greater than in the same period of 2019, according to data from AirDNA reported by Inman, and 66.4 percent more than last year.

The boom has reached 201 of the 265 markets AirDNA tracks. Rental activity usually drops between spring break in March and the beginning of the summer travel season. But, buoyed by vaccine rollouts and loosening restrictions, April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent.

The greatest month-over-month increases were in Gatlinburg/Pigeon Forge, Tennessee; Gulf Shores/Mobile, Alabama; and Myrtle Beach, South Carolina.

Beach towns have also seen a boom in bookings. Santa Rosa/Rosemary Beach; Panama City, Florida; and Hilton Head, South Carolina, are already 80 percent occupied for next month.

As a result, average daily rates have spiked to about $245, more than 16 percent above 2020 levels and 20 percent higher than in 2019.

An increase in short-term rental listings in destination markets and small cities has offset the 25 percent drop in listings in large urban areas such as New York, Boston and San Francisco. Resort markets have 12 percent more listings and small cities 34 percent more than they did before the pandemic.

The surge in short-term rentals is unique to the U.S. Among the countries with the 10 largest markets for short-stay vacation rentals, the U.S. ranked first. Mexico was second with a 3.4 percent decline compared with April 2019.

Italy, which suffered another Covid spike in March, saw demand plunge 63 percent in the same period.






    Related Articles

    arrow_forward_ios
    Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
    Miami penthouse sets cryptocurrency sale record: $22.5M
    Miami penthouse sets cryptocurrency sale record: $22.5M
    (iStock)
    South Florida resi construction starts soar in March
    South Florida resi construction starts soar in March
    Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
    (iStock)
    Home prices across globe hit records, prompting worries of bubble
    Home prices across globe hit records, prompting worries of bubble
    Steven and Beth Millner with One Thousand Ocean (Patrick McMullan/Getty, Google Maps)
    Private equity honcho pays $5M for Boca Raton condo
    Private equity honcho pays $5M for Boca Raton condo
    From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
    Kate Ford’s Palm Beach estate sells for $55M
    Kate Ford’s Palm Beach estate sells for $55M
    Miami's Quadro in the Design District (Quadro Residences)
    Alta Developers begins closings at Quadro at Design District
    Alta Developers begins closings at Quadro at Design District
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...