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2024 U.S. Short-Term Rental Outlook Report

Revenue per Available Room (RevPAR): First annual decline since 2014, dropping by 4.9%. in the U.S.
STR Market: Reached new heights despite revenue declines. Record demand in July and over 1.6 million listings by September.
Occupancy and Pricing: High supply and stretched consumer budgets led to reduced occupancy and limited pricing power.

Demand: Expected to grow by 10.7%, supported by economic growth and domestic travel recovery.
Supply: Slowed growth due to high mortgage rates, but still increasing. Supply and demand are anticipated to find equilibrium.
Occupancy: Likely to stabilize around 54.7%, similar to 2023 levels.
Average Daily Rates (ADRs): A modest increase of 2.1% is expected.
RevPAR: Predicted to rise by 1.9%.

Inflation and Employment: Inflation dropped significantly, and employment remained robust with wages growing faster than inflation.
Housing Market: Anticipated to see a slight decline in home prices, with mortgage rates expected to remain elevated but decrease slightly by the end of 2024.

Demand Shifts: Growth varied across locations, with urban areas recovering more slowly. Coastal and mountain destinations saw weaker demand growth in 2023.
Supply Trends: Supply growth exceeded demand, especially in urban areas impacted by regulatory changes.
Booking Patterns: Travelers are booking closer to their travel dates, impacting demand forecasts.

“Concerns about housing affordability reached a fever pitch in the past few years.”

“ADRs should increase by about 2.1% in 2024. Steady occupancy and a small increase in rate will raise RevPAR by 1.9% in 2024.”

“Inflation will continue to decline, albeit slowly, through the rest of the year and 2024”

“Jersey City and Newark saw large increases in demand as the enforcement of severe restrictions in New York City pushed these markets forward as a substitute.”

“Wages are now growing more quickly than inflation, and consumers can look forward to having higher purchasing power independent of their savings.”

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