US vacation rental rates have been altered by the pandemic and recovery. In this article we reveal the most expensive US markets in 2022, along with those that have seen the biggest increase, and the average change since 1Q2019.
Vacation rental pricing
Vacation rental pricing insights are one of the most important aspects of short-term rental data. Rate visibility across your market and of course individual competitive sets allows property managers and revenue managers to set prices optimally and maximize revenue. This article serves to remind us of the degree of fluctuation in rates through time, but also geographically. Keep on top of pricing and it will pay off.
US vacation rental rates: most expensive US markets in 2022
We pulled the 50 largest vacation rental markets in the USA and sorted them by their average daily rate in 2022 year to date. So, can you find your market? Which was highest?
The big stand outs are Park City in Utah and secondly Hawaii’s Lahaina; both with ADR over $700. Of course it is important to observe the potential impact of an important consideration when looking at pricing data – some markets will be skewed by a higher proportion of larger properties. (I.e., if Hawaii vacation rentals have 3 bedrooms on average, and New York only 1 bedroom, it stands to reason that Hawaii will have higher market average rate).
US vacation rental rates: how pricing has changed since 2019
So current ADR is one thing, but in our top 50 markets, the rates above represent a 24% gain in nightly pricing since 2019 on average $242 in 2019, $297 in 2022). So, who are the big hitters here?
Once again, Lahaina is one of the top markets, but Park City has moved closer to the bottom of the pile. Meanwhile Hollywood sits at the top with a huge rate gain of 61% since 1Q2019.
Interestingly, 3 markets have seen prices fall: Port Aransas and Myrtle Beach and Hilton Head Island both of South Carolina. This is especially interesting as the 2 SC markets actually fall 6th and 7th on this same list for occupancy on the books for the summer. A lack of correlation here suggests that strategy may not be optimal. See the next article for the full list of market occupancies on the books for the Summer ahead.
What it all means
With only 3 of the largest US markets showing ADR depreciation since 2019, the above demonstrates the confidence in vacation rental demand post-COVID. In a following article, we will also look at the origin of these guests versus pre-pandemic.
Additionally, it illustrates the degree of variation in vacation rental average daily rate across the US. First geographically – ($141 in Myrtle Beach to $791 in Park City), and secondly from pre-pandemic in Q1 of 2019 to now. Retaining current rate outlook is critical to maximizing rate but occupancy, and therefore your revenue.
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