In this report, we use aggregate data (2018 - 2023) to examine changing trends in supply, demand, and ADR for vacation rentals and hotels in the United States. AirDNA contributes data on short-term rentals (STRs), while STR/CoStar provides traditional hotel data. Using these comprehensive data sets, we also forecast industry trends in the second half of 2023 and into 2024. 

Our analyses show that rental shares of supply and demand have accelerated. Small city/rural and suburban locations drove this growth, as they provided consumers with physical space during the pandemic. Larger homes also contributed to growth, with 3-bedroom rental properties accounting for a larger share of growth than 1-bedrooms. In the year ahead, the rental share will continue to grow, and hotels are expected to feel the impact. 

Supply and Demand Growth for Short-Term Rentals Outpaces Hotels

When planning a trip, most travelers have the option between booking a hotel or rental property. The unique circumstances of the trip—the purpose, budget, location, and size of the group—may make one accommodation type more appealing than the other. A family hoping to get a feel for a local neighborhood may opt for a vacation rental, while a business professional traveling for an annual conference may return to the same hotel year after year. 

The New Frontier in Lodging: Supply and Demand Growth for Short-Term Rentals Outpaces Hotels

In this report, we examine changing trends in supply, demand, and ADR for vacation rentals and hotels in the United States. Our analyses show that rental shares of supply and demand have accelerated.