Traveler demand for vacation rentals in the U.S. is still growing, but the pace has “started to decelerate quickly,” according to a report from property manager Evolve.
That was a major finding in Evolve’s report, Vacation Rental Industry Trends: Summer 2022.
While vacation rental demand was up 32 percent year over year in January 2022, it slowed to 9 percent growth in May, the report found.
At the same time, supply of vacation homes in the U.S. is holding steady, if not accelerating. Evolve said vacation rental supply growth stood at 10 percent in January 2022, and in May it notched 12 percent growth.
“This means the economic environment is beginning to impact summer travel demand, and there will be more vacation homes vying for fewer guest bookings overall,” Evolve stated.
Asked whether the slowing demand growth might cause Evolve to do a restructing, including layoffs, co-founder and CEO Brian Egan said there have been no layoffs.
“No, quite the opposite, we’re continuing to grow rapidly,” Egan said. “Relative to any pre-pandemic time period, 2022 has been an incredible year for demand, and the impact of the macroeconomy is showing up in modest ADR (Average Daily Rate) compression year over year. It’s not threatening the fundamentals of occupancy that really drive the economics of our business.”