In this episode of the STR Data Lab, Jamie Lane, the Chief Economist at AirDNA, and Scott Sage, SVP of Marketing, discuss the performance of the Short-Term Rental (STR) market in January. The episode highlights data from Airbnb, Booking.com, and VRBO's Q4 reports, revealing a 12-19% increase in nights booked across platforms. Jamie emphasizes the importance of being multi-channel listed to maximize bookings. Supply growth was reported at 4.3%, while demand growth surged to 8.9%, resulting in over 20 million nights booked, predominantly for spring break. Market dynamics in the U.S. showed record-high January bookings, with an Advanced Daily Rate (ADR) increase of 5% year-over-year. Despite inflation concerns, January provided a strong start, with higher booking volumes and pricing power. 

The discussion extends into interest rates and their impact on the STR market, mentioning a slight decline in 10-year treasuries and 30-year fixed-rate mortgages. Specific market performance is dissected, noting strong demand in mountain and lake areas due to favorable weather. Additionally, small cities and rural markets experienced a 23% demand growth. Jamie also provides insights into challenges for standardized properties, urging hosts to differentiate through better amenities. Lastly, the episode addresses the continued impact of natural disasters like hurricanes and fires on bookings in affected areas, indicating a possible decrease in specific markets like Los Angeles and Maui. Jamie concludes with potential macroeconomic impacts, including government job cuts and cross-border travel trends between Canada and the U.S.

You don’t want to miss this episode!

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Connect with Jamie on LinkedIn and Twitter: 

LinkedIn: https://www.linkedin.com/in/jamiehlane/ 

Twitter: https://twitter.com/Jamie_Lane 

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Connect with Scott on LinkedIn: 

LinkedIn: https://www.linkedin.com/in/sagescott

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Connect with AirDNA on LinkedIn, Twitter, TikTok, and Instagram:

LinkedIn: https://www.linkedin.com/company/airdna/  

Twitter: https://twitter.com/airdna 

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Instagram: https://instagram.com/airdna.co 

Episode 122