Short-term Rental News Digest – January 2024

While 2023 was overall a good year for the short-term rental industry, it wasn’t without challenges, though. New York City, one of the biggest markets, was dealt a hard blow when new strict regulations were introduced towards the end of the year.

However, January’s headlines show that plans are being made to address the issue about affordable, long-term housing and build new partnerships that will benefit the whole community. Plus, based on available data, rental demand for the first six months is already outpacing that of last year. 

Hosts in beach locations or with properties nearby national parks in particular can look forward to a busy year. Trends show that travelers want to book properties with a view. Whether you need data or design inspiration to get you going this year, this month’s digest is packed with both. 

European STR Market Ends 2023 on a High

The European short-term rental market ended 2023 with impressive growth. Eurostat, the European Union’s statistical agency, reports that during Q3 2023 guests spent nearly 310 million nights in accommodation booked with the leading platforms. This works out to an increase of over 13% compared to Q3 2022. In fact, this picture looked pretty much the same for the first nine months of last year too. 

Spain, Croatia, Italy, Portugal, and France were singled out as favorite regions. Spain topped the list with seven regions making the Top 20 list.

Firm Start for 2024 Expected

AirDNA predicts that the travel industry can look forward to a firmer start this year compared to 2023. Over 200,000 jobs were added in December 2023 alone. Combine that with possible rate decreases on the cards and it looks like 2024 will be easier for making travel plans. 

The demand in January is up by about 8% compared to the same period last year. What’s more, reservations are already starting to roll in for spring and summer. After January, rental demand remains higher for the next five months. 

Small cities and rural locations in particular can look forward to a busy April thanks to the solar eclipse. Bookings on the day of the eclipse have increased by over 220%!

Amazing Views the Outlook for 2024

Travel trends predicted for 2024 are all about great views. Whether it’s overlooking the beach’s blue waters or exploring one of the national parks, guests are craving nature getaways. 

Airbnb curated its platform’s most liked homes on Instagram and identified the following listings as last year’s ultimate guest favorites:

• A one-bedroom home in Quintay Casablanca, Chile
• An eco bamboo house in Abiansemal, Indonesia
• A jungle gem in Tulum, Mexico
• An ocean view villa in Santa Teresa Beach, Costa Rica
• A Tuscan treehouse in Florence, Italy

NYC’s Housing Inventory Remains Unaffected

One of 2023’s headline stories was New York City’s strict, short-term rental regulations. Though, four months after the new rules were implemented, there has been no significant change in housing availability or rental prices. 

An analysis of publicly available data shows that rent across the city increased by only 2.3% in December. As for inventory, the number of rental units available for rent at the end of 2023 remained unchanged from September. 

The significance of these two numbers is that at this stage the restrictive regulations have failed to help with the city’s housing crisis. It was argued that the rules would add tens of thousands of rental properties, but that is still to be the case. 

Instead, hotel prices have increased sharply. It’s reported that the average hotel room will cost travelers almost 20% more. 

An underground market for unregulated, short-term rental accommodation also developed. This is likely caused by the cumbersome process that hosts must follow to register.

Skift reports that New York City’s Office of Special Enforcement (OSE) approved only 22% of the applications submitted, while just over 15% were rejected. More than half of the applications submitted were instructed to supply extra info or make corrections. 

Airbnb Forms a Housing Council

To help identify ways to improve the housing supply in the United States, Airbnb has launched a Housing Council. Stephanie Rawlings-Blake, former mayor of Baltimore, will chair this council. She is no stranger to housing issues and increased Baltimore’s bond rating to the highest it’s been in over four decades. 

Her role will involve collaborating with housing organizations and leaders to help grow the supply of new long-term housing. She will also help Airbnb to work with cities on short-term rental regulations to find a better balance. 

Airbnb Appoints New Creative Advisor

Airbnb is partnering with La La Anthony, an experienced leader in the entertainment industry, to grow the platform’s talent and entertainment partnerships. In her role as Creative Advisor, she’ll be responsible for developing new programs that will offer partners unique ways to interact with engaged audiences. 

She’s a host herself. Her first project was to design La La Land, a one-of-a-kind listing in Fort Lauderdale. For some design inspo, be sure to check out the five-bedroom home that she’s curated in partnership with Airbnb.