A Winner Takes It All Market: Malmö's STR Boom Ahead of Eurovision 2024

Key Takeaways

• Malmö's short-term rental market is seeing a surge in demand and occupancy as the city prepares to host the Eurovision Song Contest in 2024.
• Available rates have soared to more than 320 euros per night (double the early booking rates!), which is well above the 12-month average of 109 euros per night. 
• Despite a post-event decline in active listings, the market shows a permanent increase of approximately 150 listings.
  

Residents of Malmö, Sweden aren’t just rolling out the red carpet for the 2024 Eurovision Song Contest—they’re opening their own homes. 

Malmö’s homes are more in demand than a backstage pass, with more than 100,000 Eurovision fans set to converge on the city. This year isn’t just any year for the contest, either. 2024 marks the 50th anniversary of ABBA's dazzling Eurovision victory, turning every corner of Malmö into a vibrant hub for cultural exchange and, of course, a prime opportunity for locals to earn a little extra from short-term rentals (STR).

You know us here at AirDNA. We just had to dig into the data to find out how Malmö’s STR market is shaping up ahead of Eurovision. What we found was striking: residents of Malmö are ready to score 'douze points' in the short-term rental market. 

Eurovision Song Contest Background 

The Eurovision Song Contest is a renowned music competition that has captivated audiences since 1956. It showcases an array of musical styles and promotes international unity through cultural exchange. The contest is watched by millions of viewers worldwide and is hosted by the previous year's winning country, giving local cities a chance to shine on an international stage.

That means it’s Malmö’s turn to host. Malmö's charm and strategic location at the crossroads of Northern Europe make it an ideal host for such an international event. This isn't Malmö's first Eurovision rodeo either. The city hosted the contest in 1992 and 2013, each bringing significant attention and economic benefits to the region. Eurovision 2024 begins on May 7. 

STR Stats for Eurovision 2024

The impact of this year's contest, coinciding with the 50th anniversary of ABBA's win, promises to bring excitement and ‘money money money’ to Malmö’s STR market as well as the surrounding region.

Soaring Occupancy Rates

In the lead-up to Eurovision, Malmö's short-term rental market shows significant shifts in occupancy and demand, revealing a clear uptick as the event approaches. However, the host city isn't the only Swedish city experiencing a significant influx of visitors due to Eurovision. Indeed, the entire region is buzzing with activity, as you can see in the interactive map linked below. 

Here are some highlights: 

• Malmö: As the epicenter of Eurovision, the city’s occupancy rate soars to 59% during the event, rising from 30.8% the previous week and compared to 30.1% during the same week the prior year. The city’s rich blend of culture and modern amenities makes it a magnet for tourists.
• Lund: Lund takes the lead with an exceptional 61% occupancy rate during the Eurovision week, which is a remarkable increase from 35.7% the week before and nearly twice the 34.0% occupancy rate during the same week in the previous year.
• Burlöv: The town of Burlöv has shown impressive growth with a 58% occupancy rate during the Eurovision week. This is a significant increase from the previous week's 39.2%, though slightly down from 41.8% during the same week the previous year.

These figures are strong indicators of a high-demand market, yet they represent a balanced response to the influx of Eurovision attendees, not an overwhelmed system.

Supply versus Demand

Demand nights paint a similar picture of growth in towns near the heart of the action. The chart below illustrates the surge in demand for rental nights in nearby towns compared to the previous week, indicating the region-wide excitement and anticipation surrounding Eurovision.

• Staffanstorp leads with a striking 222% increase in demand nights.
• Lomma's demand nights have risen by 147%.
• Malmö itself has seen a 136% increase.

Meanwhile, week-over-week supply growth during Eurovision week illustrates a more subdued but significant increase in short-term rental listings across various cities. This growth indicates that while demand spikes, the supply is also expanding, though at varying rates across the region:

• Lomma leads with substantial supply growth, nearly reaching 60%, showcasing a robust response to the heightened demand.
• Malmö, despite being the host city,  shows a more measured increase in supply of about 20%, which might reflect a more saturated or already well-developed market compared to its neighbors.
• Trelleborg displays the least growth, under 10%, suggesting a smaller capacity for expansion or lesser demand relative to other areas.

What Does This Mean for Malmö and Its Neighbors? 

The STR market has responded proactively to Eurovision. Instead of an erratic spike, we see calculated adjustments to accommodate the surge. This pattern of steady increases across the board—highlighted by significant growth in occupancy rates and moderated yet substantial growth in supply—suggests a well-prepared market that is not overwhelmed by the event. 

Gimme, Gimme, Gimme: The Price is Right for Eurovision STR Hosts

Short-term rental rates are significantly higher during Eurovision week. The average rate jumps to €149—well above the 12-month average of €109—highlighting the market's proactive adjustments to capitalize on the heightened demand.

Pricing Surges as Eurovision Draw Near

AirDNA data also suggests that early-bird guests got the worm. Hosts are primed to reap substantial benefits from last-minute bookings. 

Fans who booked early secured accommodations at rates well below 150 euros. Currently, the average booked rate for all STRs in Malmö is €136, reflecting a 6% increase from the previous week. This suggests hosts are effectively using early pricing strategies to establish a solid revenue base and minimize the risk of last-minute vacancies.

Conversely, those booking at the last minute are encountering steep prices, with rates more than doubling to exceed 320 euros per night as Eurovision draws closer. The discrepancy between booked and available rates continues to grow as the event nears, with booked rates peaking at 143 euros and available rates soaring to 385 euros by May 11th. 

Interpreting the Data

The data on pacing rate offers a clear picture: Malmö’s STR market is not reactive but proactive, adjusting in real time to the oncoming Eurovision festivities. The continuous surge in rates, which are now significantly higher than the annual average, indicates that the market not only responds well to demand surges but also anticipates them. Hosts are pricing strategically to get the best returns while providing visitors with a variety of accommodation options..

Active Listings Explode as Eurovision Approaches

A close examination of the current active listing nights and the supply dynamics reveals a city that is mobilizing its resources in preparation for the influx of international visitors.

The chart above shows a remarkable expansion in short-term rental listings across cities near Malmö as they prepare for the influx of visitors during Eurovision. Here’s a closer look at how the number of active listings has surged, comparing current figures to the listing average in March 2024:

• Lomma: Leading with a striking 233% increase in active listings from a 151 average to 502 listings for Eurovision dates, Lomma tops the chart.
• Malmö: Malmö shows a robust growth in its STR supply, with a 184% increase. The host city already boasted a listing average of 3,078 and added approximately 5,000 more for the big event..
• Vellinge: Not far behind, Vellinge demonstrates a significant supply expansion of 200% for a total of 2,537 short-term rental properties, quadrupling its average of 845 listings. This positions Vellinge as a crucial player in hosting the event’s spillover from Malmö.

The data illustrates that not only are the cities close to Malmö experiencing substantial increases, but towns further away are also seeing significant growth in listings. This uniform upswing across the region underscores a well-coordinated effort to maximize accommodation capacity in anticipation of Eurovision, ensuring visitors have plenty of options throughout the area.

Note: We only count listing nights with at least one night booked. Many more listings could get booked in the coming weeks, so we’ll likely continue seeing an increase in active listing nights.

The Host with the Most: Malmö Sees an Enduring Rise in Listings

According to AirDNA analysis, Malmö has seen an impressive addition of 400 listings for Eurovision Week, indicating significant market response in anticipation of the event. This surge in listings reflects the city's strategic preparation to maximize local economic benefits during one of Europe's most celebrated cultural events.

• Pre-Event Growth: Listings began a steady rise from mid-April, escalating noticeably as Eurovision approached, demonstrating the market's proactive adjustment to the anticipated demand.
• Peak Listings: During Eurovision week, the total number of listings peaked with an additional 400 properties made available specifically for the event, maximizing the city's capacity to host international visitors.
• Post-Event Decline: After the culmination of Eurovision, there was a sharp decline in the number of active listings. However, the total still remains substantially higher than the levels seen before the event.
• Permanent Increase: Post-Eurovision data reveals a permanent increase of approximately 150 listings in the Malmö STR market, suggesting a lasting expansion and potentially greater readiness for future large-scale events.

What This Means for Future Bookings

Given that these trends only account for listings with at least one booked night, the potential for more active listings is significant. With the contest still some weeks away, we anticipate a continued rise in active listing nights, especially for houses that may still adjust their availability and pricing strategies.

What Does It All Mean? The Eurovision Effect 

The data provides us with several valuable insights into the impact of Eurovision on Malmö's STR market.

Community Response

The data underscores a strong community response, with listings more than doubling, reflecting an eagerness to welcome and host visitors.

Adaptation and Preparedness

The rise in active listings and ADRs before the event indicates Malmö's strategic adaptability and preparedness to meet the Eurovision demand.

Economic Ripple Effect

The substantial uptick in rental activity suggests a wider economic impact, likely to spill over into local commerce and hospitality sectors.

Quality of Stay

With occupancy rates climbing, the diverse accommodations available are poised to offer visitors a memorable experience, indicative of Malmö’s commitment to quality tourism.

Long-Term Outlook

The STR market surge during Eurovision sets a precedent, highlighting Malmö's capacity for growth and its appeal as a destination for future large-scale events.

In essence, the data narrates a story of an STR market in Malmö that’s ready for the spotlight, contributing to the city’s economic vibrancy and future success. 

Curious About What Shapes Markets During Events?

If you're eager to dive deeper into what drives market trends and how to seize investment opportunities, we've got you covered. We have a special series on major global events and how they've shaped the STR market in their areas. We’ve covered the Total Solar Eclipse, Taylor Siwft, and the Super Bowl, to name a few. Each piece offers a unique lens to understand the interplay between entertainment, economics, and vacation rentals.