Short-Term Rentals Show Staying Power Throughout the Summer

You read it here first: We’re halfway into the year, and the short-term rental industry has been buoyed by summer travel picking up, despite prevailing economic uncertainty.  

Presented by

The Skift Short-Term Rental Report is the latest addition to Skift's premium newsletter lineup. Stay on top of the latest sector news directly in your inbox by subscribing here.

Travelers have been prioritizing value and seeking affordable options, AirDNA’s mid-year outlook study found. The summer travel season of 2023 is expected to be extended as travelers seek off-season rates. 

Strong economic fundamentals and continued enthusiasm for travel have raised the demand growth forecast for 2023 to 10.4 percent year-on-year, up from 5.5 percent. Mortgage rate increases and declining occupancy have slowed supply growth, but lower house prices and sustained high demand have boosted the supply forecast to 14 percent year-on-year in 2023, up from 9 percent.

Short-Term Rental Outlook: Demand Grows, Supply Slows

New This Morning: Hostaway, a property management company for vacation rentals, has announced its integration with Google. This integration allows Hostaway customers to list their short-term rentals on various Google platforms, including Google Travel, Google Search, and Maps. The company recently raised $175 million in venture funding. 

Situ, a global agency specializing in extended-stay accommodations, has recently published a white paper focused on the current factors, including legislation, that are influencing the availability of short-term rental accommodations in 10 major global destinations, and how this impacts the extended-stay sector.

The research covers key locations such as London, Edinburgh, Dublin, Paris, Amsterdam, Brussels, New York City, Boston, Singapore, and Sydney. The study found that the factors impacting the availability of accommodations vary greatly across these locations, leading to a complex landscape with no uniform effect on availability.

Niagara Falls, New York residents can now use an online reporting tool provided by the city to report any suspected instances of unregulated and unsupervised short-term rental properties. According to the city's estimate, there are over 1,000 vacation rental units in Niagara Falls that are operating unlawfully. Renting vacation units in residential neighborhoods is against the rules, and owners can face fines of up to $100,000. 

Chart of Day: In its mid-year outlook, AirDNA predicts that peak occupancy in July will resemble 2019 levels, and shoulder season occupancies are expected to remain higher, leading to elevated occupancies compared to 2019.

Around the World: National authorities in Finland have announced an intention to start selling off public properties and reduce their physical presence in urban spaces. This may result in the merging of ministries and departments, not in terms of function but in terms of buildings.

Finnish state to sell empty offices, as employees mostly work from home

Elsewhere on Skift: While the booming hotel development pipeline in Saudi Arabia is expected to cause disruptions, the hotel industry sees an opportunity to prioritize ESG goals. Will this construction frenzy lead to a green revolution?

Saudi Arabia’s Hotel Construction Surge Triggers Supply Chain Concerns

It's rare for boutique hoteliers to share lessons learned the hard way, at least in public. Kudos to Michael Achenbaum, creator of The Gansevoort in New York, for revealing some missteps to avoid when adding a members club to a hotel.

Gansevoort Hotel Adds Members Club: Founder’s Lessons To NOT ‘Hemorrhage Money

Skift Short-Term Rental Reporter Srividya Kalyanaraman writes the Skift Short-Term Rental Report. Send news tips to sk@skift.com.

You’re reading a free version of the new Skift Short-Term Rental Report. To learn more and get full access, please visit our subscription page.