Short-Term Rental Demand and Supply Outpaces Hotels

The answer to the question “Which is doing better – hotels or short-term rentals?” is “depends on whom you ask and when.”

But in their latest report data firms AirDNA and the CoStar group claim that rentals are growing in demand as well as supply over hotels. 

For this report, the firms aggregated data from 2018 to 2023 to examine changing trends in supply, demand, and ADR for vacation rentals and hotels in the United States. The analysis found 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. Among those, 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 report predicts that rental share will continue to grow, and hotels are expected to feel the impact.

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