The short-term rental market is ever-changing. Last year, the market took a major hit. Demand diminished in the United States as a growing number of American travelers turned their attention to the cruise industry and overseas trips.
But that was then and this is now. According to AirDNA data, lower inflation rates and a rise in domestic travel will result in a market rebound.
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What To Expect In The New Year
There's no way of knowing what the next 12 months will bring, but early indications point toward two segments as big winners.
It's anticipated that medium-sized and small urban and/or rural markets will drive the growth in demand while expanding their share of the U.S. rental market.
On the flip side, urban locations — which experienced serious growth and momentum throughout 2022 and the first quarter of 2023 — will level off. Growing competition, combined with regulatory restrictions, could make it difficult for rental property owners in these market segments.
Here are some additional 2024 projections shared in the AirDNA 2024 Outlook Report.
- Demand: Anticipated 10.7% increase driven by economic growth and rebound in domestic travel
- Supply: Growth tempered by elevated mortgage rates, yet still expanding. Balance with demand expected
- Occupancy: Projected to steady at 54.7%, in line with 2023.
- Average daily rates (ADRs): Forecasted to see a 2.1% uptick
- Revenue per available room (RevPAR): Estimated to climb by 1.9%
Keep a close eye on these numbers as 2024 unfolds.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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