Last year, months of pent-up travel demand triggered a major spike in short-term rental bookings in many second-home hotspots. Pacaso’s researchers found that sales of these properties had increased nearly 25% year-over-year in that time period. Those are homes that sold for $1 million or more that are designated for seasonal or recreational use. Bolstered by then-low interest rates, extra savings, and the ability to work from anywhere, white-collar workers turned out in droves to buy vacation properties in the last two years.Ī report this week by property broker Pacaso found that sales of luxury second homes and investment properties were up approximately 235% from April to June of this year compared to pre-pandemic levels. This is due in part to the number of wealthier homebuyers who purchased a second home since the start of the pandemic. “Over the past few months, supply has increased to catch up to and even overtake demand growth, pushing occupancy down as bookings are spread across more properties.” “2021 was a bumper year for short-term rentals in the U.S., largely thanks to pent-up demand after lockdowns giving a huge boost to domestic travel,” says Jamie Lane, AirDNA vice president of research. That means hosts are feeling the pinch of a high-supply market-and consumers could be poised to get better deals, after months of soaring prices for lodging. That’s a 23.2% year-over-year increase, according to rental analytics firm AirDNA. skyrocketed to 1.38 million in September. The number of available short-term rental listings in the U.S. Airbnbs are sitting empty because so many wealthier people and investors listed short-term rentals on the site, in the wake of a pandemic-fueled boom.

But it’s not because people don’t want to travel. Their concerns have merit-some short-term rental hosts are weathering a steep decline in occupancy rates as the holiday season approaches.

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