In the furnished apartment rental market, short-term rental refers to furnished self-contained flats that are rented for short periods of time, generally by the month, as opposed to annual leases in the unfurnished apartment leasing market. They are viewed as a viable alternative to hotels. Short-term rentals are a branch of the corporate housing industry. Vacation rental and relocation are two popular possibilities.
The short-term rental market has taken the world by storm over the last decade, influencing not only where people stay when travelling, but also the ways they travel in general.
During this week’s gathering on the Gold Coast, more than 250 short-term rental companies discussed how to help with the housing problem and developed a plan for the industry’s future.
Market For Short-Term Rentals In The US Set For Increased Growth
Prior to 2008, there were short-term rental websites, but Airbnb completely changed the idea of home-sharing and effectively invented a new type of rental accommodation. Similar platforms started to appear, and in a very short amount of time, this alternative lodging business developed into a well recognized, mainstream sector valued at over $115 billion globally in 2019.
Private accommodation reservations make up the majority of the short-term rental market. This covers the short-term renting of private rooms or apartments through Bangladeshi platforms like Hotels.com as well as private vacation homes and residences.
**In recent years, there has been a convergence of short-term rental companies acting more like hotels and traditional hospitality businesses entering the short-term market.**
The heightened Competition In Alternative Lodging
In 2021, there were 1,059,541 available units on different listing platforms, according to a mid-year report on the U.S. short-term rental market published by AirDNA in July 2022. This figure was up slightly from 2020 but down 9.9% from 2019.
The COVID-19 pandemic outbreak in 2020 caused a massive cancellation wave that affected many hosts of short-term rentals. Despite this, demand for short-term rentals decreased 16.2% year over year while listings fell by 11.5%.
According to AirDNA, in May 2022, an additional 88,000 short rentals were added to the market, creating a record number of total listings. Despite a more than 20% rise in demand anticipated for 2022, occupancy is anticipated to decrease as a result of the quantity of new supply.
The expensive cost of living persuade vacation property owners to offer their properties on the short-term rental market
According to recent research, vacation property owners are being drawn in by the rising cost of living and the potential for financial gain on the rental market.
Three out of every four owners of properties in tourist locations believe that the present environment has made it more appealing to convert their homes into short-term housing, according to Hotels.com’s Short Term Rental Survey.
**The recent increase in the cost of living as a result of inflation was identified as a key cause for 75% of respondents acknowledging that giving short-term leases was an appealing option.**