As the COVID-19 pandemic weighs on, demand for short-term rentals in the United States has fallen, according to new data from AirDNA. Short-term rental demand declined 15.3 percent in December 2020.
Urban and suburban rentals have seen significant declines in demand, by 55.5 percent and 33.5 percent from the previous year, respectively. Meanwhile, amid a time when outdoor activity has been valued more highly, demand for mountain destination properties increased by 15.5 percent year over year.
Markets that saw the greatest annual growth in short-term rentals since December 2019 include Gulf Shores/Mobile, Alabama (up 86.8 percent); Lower Hudson Valley, New York (up 84.9 percent); and Coachella Valley, California (up 84.3 percent).
As vaccine distribution gets underway and travelers turn their attention back to travel, new bookings are on the rise.
The majority of those new bookings, 70%, are for destinations outside of major metro areas. Markets that cater to outdoor adventures – including near national parks – drove many of the new bookings.
In the first half of 2021, short-term rentals in destination and resort markets are expected to outperform as they did in 2020.
Buying a vacation rental property can be a great way to invest in real estate, offset some homeownership expenses, and still enjoy your favorite vacation spot from your own second home. If you are interested, call/text Mark Kunce 760-766-6093.