We’re halfway through 2022 (!) and it has already been an unprecedented year for the short-term rental industry. This spring, available listings reached an all-time high of 1.34 million, up 24.7% from last year, with ADRs, demand, and revenue also seeing consistent year-over-year growth. We turned to our experts to see what trends are sweeping across some of our top destinations, from the white sand beaches of the Emerald Coast to the desert oasis of Coachella Valley. Whether you’re a vacation rental owner or an investor looking to get into the STR game, build your strategy around these trends to drive more bookings and maximize your revenue.
Short-term rental trends heating up this summer
Before we dive into each market, let’s take a step back and see what short-term rental owners can expect over the next couple of months. According to our friends at AirDNA, you should plan to get ahead of these five trends:
Mid-week stays are seeing growing demand
Tip: Don’t drop your rates too much for mid-week stays; guests are likely comfortable with them. Research what similar homes are charging to stay competitive, but know that weekday travelers are out there.
Travelers are booking properties with more rooms
Tip: If your short-term rental has only one or two bedrooms, use thoughtful interior design to maximize your space and increase occupancy. If you have a larger place, be sure to market the full bedroom count and occupancy.
Luxury properties are experiencing higher occupancy rates
Tip: Make your vacation rental stand out from the competition by optimizing your listings and promoting what makes your home unique.
Long-term stays (28+ days) are more popular than ever
Tip: Cater to flex workers and make sure your vacation rental is work-from-home compatible.
ADRs are on the rise across all property types
Tip: Don’t blindly increase your rates. Use a dynamic pricing tool or partner with a vacation rental manager who can optimize for market and seasonal changes.
Destin and Coachella Valley short-term rental trends and predictions
Whether you’re looking to improve your vacation rental management strategy or maximize your return on investment, check out these market reviews and predictions from our local experts so you can optimize your vacation rental’s performance for the rest of 2022.
Coachella Valley, CA | Jake Breuner, Regional Sales Director
2022 has already been another banner year for the Coachella Valley short-term rental market. With events like Coachella and Stagecoach music festivals returning after the pandemic, guest demand and ADRs have skyrocketed. Travel sentiment is shifting more and more toward driveable markets, and larger homes with experiential features for families and groups to enjoy are in high demand. However, an influx of vacation rentals is leading to more regulations, making it tough for less-involved STR owners and property managers to operate. Value on properties that already have STR permits is much higher as it becomes more difficult to successfully apply for a permit in this region.
With a recession looming, travel is likely to slow. However, markets like Palm Springs will stay in fairly high demand as the popular events in these areas are here to stay and access is easy for drivers and flyers alike. Rising gas prices and the shifting macro environment have started to show impact on smaller homes, but larger homes are performing well and folks are looking to travel as groups more than ever (2 families with a total of 8 will pay less booking a large home than they would by booking 3-4 rooms at a hotel).
Destin/30A, FL | Victoria Ebert, Regional Sales Director
The real estate market in Destin is booming. So far, 2022 has proved to be a busy seller’s market for Destin and 30A real estate. Buyers aren’t squabbling over prices, with homes selling at or above asking. Average sales prices are still going up (+14% compared to 2021). 30A West is also seeing a substantial increase in the number of sales by 11% over last year.
However, short-term rental supply is catching up with demand so we’re seeing softening in some areas of the market. Therefore, it’s important to ensure that you choose a profitable property so you can enjoy a strong return on your investment. Below are a few things to consider when buying a vacation rental in Destin:
- Location before anything else
- Amenities are essential—experiential features such as pools are key in this market
- Rental income expectations
- Understand the market data and insights such as ADRs, occupancy rates, cap rates, rental strategy, nearby attractions, and reviews of the area
For the remainder of 2022, I think you’ll see Destin continue to outperform many other markets being the strong drive-to market it is. The booking window may shrink a little due to the macroeconomic climate, but will pace consistently throughout the remainder of the year.
Partner with a short-term rental expert
The short-term rental industry is evolving with traveler preferences and continuing to grow. These trends highlight a small part of the current vacation rental market, but there’s a lot to consider when planning your seasonal short-term rental strategy. Consider working with an experienced team who can stay ahead of these changes and more.
AvantStay offers end-to-end, flexible management programs to give you peace of mind. From financials to design to maintenance, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income so you can sit back and relax—it’s that simple.
If you have questions, our team is here to help. Why not partner with the best vacation rental management company to unlock your property’s full value? Get started with our vacation rental management experts today!