Ready, Set, Go! U.S. Short-term Rentals Race into Summer Travel Season

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Jun 17, 2021, 10:00 ET

DENVER, June 17, 2021 /PRNewswire/ -- After Steady Recovery, U.S. Short-term Rental Demand Leaps Forward in May, gaining 17.4% vs 2019 Levels and Defying Traditional Seasonality Patterns.

After hitting the recovery milestone in April, U.S. short-term rentals moved quickly into expansionary territory in May. U.S. short-term rental occupancy rose to 63.7%, up 3.5% from April, and an incredible 20.9% higher than May 2019. The gains in occupancy were primarily the result of a 17.4% increase in demand over 2019 levels (+66.0% vs 2020) in May 2021. Average daily rates (ADRs) increased to $244.41, which was 11.9% higher than May 2020, and 21.4% higher than May 2019. RevPAR grew by 46.7% over 2019 levels, a 12th consecutive month of growth.

"Prior to the COVID-19 pandemic, 20% gains in demand each year had been the norm." said Scott Shatford, CEO of AirDNA. "Combining pent-up demand driving occupancy levels this spring with a hot vacation season in summer and increased flexibility for travel this fall, it's going to be an epic year for the industry."

State Level Demand Shows Widespread Recovery throughout the U.S

Of the 50 states, Puerto Rico, and Washington D.C., 44 have exceeded 2019 demand levels as of May 2021, while eight states have yet to recover. West Virginia (+109%), Arkansas (+108%), and Oklahoma (+102%) have all more than doubled the demand for short-term rentals in their state over the past two years. New York (-32%), Massachusetts (-33%) and Washington D.C. (-51%), which rely heavily on urban markets, have yet to recover.

"The wide-spread demand recovery across the U.S. demonstrates the strength of the short-term rental sector and how broadly it appeals to a wide range of potential travelers,'' said Jamie Lane, VP of Research at AirDNA. States with a significant portion of supply in leisure coastal markets achieved the highest occupancy levels in May. Puerto Rico led all states in May with 76.6% occupancy followed by Hawaii (76.0%), Alabama (70.5%), South Carolina (70.3%), and Florida (69.7%). Puerto Rico also had the highest market level occupancies in May with San Juan (83.8%) and Rio Grande/Fajardo (82.4%) the only markets in the U.S. to exceed 80% occupancy for the month.