Rising inflation rates have resulted in short-term vacation rentals becoming more expensive for travelers.
The cost of travel and day-to-day life has pinched budgets across the world, with inflation rates jumping to highs of 7% in 2021 and 2022, as reported by the U.S. Inflation Calculator. This has resulted in hosts hiking rent prices to counter inflation. However, despite the rising costs, the demand for short-term rentals remains high with the first three quarters of 2022 showing an increase of 20.9% in nights stayed year over year.
AirDNA, an analytics company that provides data for the short-term rental industry, reported a 5.6% price increase in nightly stays with the average daily rate increasing from $259 to $274. Additionally, the housing market slowdown and economic pressures have led homeowners to list their properties as vacation stays for extra income. However, economic concerns are rising nationwide, and predictions of a slowdown in inflation and an increase in consumer interest in travel may create growth in the short-term rental market.
In 2023, demand for vacation rentals is expected to grow 5.5%, with an increase in demand for lesser-known small cities and rural settings. While prices may rise, the demand is expected to remain higher than pre-pandemic levels. Travelers are also booking further in advance for 2023 than they did in 2019, with many prioritizing environmentally sustainable travel.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].