Skift Take
After a volatile 2023, next year may see demand and supply back in balance.
This was the year that all the occupancy gains from the short-term rental boom went away. Demand for short-term rentals declined in the U.S. as Americans opted for overseas trips and cruises.
While demand for international stays rose by 17%, domestic trips had moderate growth of 4.5%. Economic uncertainty, weak consumption growth, and unexpected events, such as wildfires and hurricanes, further added to the slowdown.
Jamie Lane, chief economist at AirDNA wrote rather ominously: “As of November 2023, all the gains seen in U.S. short-term rental occupancy have now been erased and we are back to the average occupancy level seen in 2018 - 2019.”
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