Vacation Rental Statistics and Industry Forecast (per MagneticStrategy)

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Statistics often seem to be more of an art than a science. Ever changing, there are at times an overabundance of options - a cornucopia of at times, opposing factors to consider, whether financial, economic, or simply the changing dynamics and demographics of the vacation rental industry and its consumers. Therefore, we aim to constantly serve and update people who want to rent from the best and from owners who want their vacation rental to be listed.

In brief, understanding the financial landscape of the vacation rental industry is essential for maximizing your investment’s profitability. Below, we present key vacation rental statistics that shed light on average rental prices, occupancy rates, and expenses to help you make informed decisions when it comes to managing and renting out your property.

With those thoughts in mind, a fascinating US vacation short-term rental breakdown is gleanad from Magnetic Strategy below:

Average Short-Term Rental Prices

Rental income varies greatly depending on location, type of property, and management efficiency. Coastal properties continue to yield higher returns compared to urban settings. According to AirDNA, the average daily rate for short-term rentals in the US was around $278 in 2023.

US Vacation Rental Prices by Property Type Prices also differ based on the type of rental:

Shared room or private room: ~$97 Single-bedroom house or apartment: ~$182 Two-bedroom house or apartment: ~$255 Three-bedroom house or apartment: ~$337

Occupancy Rates

Airbnb’s vacation rental statistics show a decline in occupancy rates across the short-term rental market in the US, however, there is wide variation across different regions of the country.

National Average Occupancy Rate

Trailing twelve months (TTM), March 2023 to February 2024: 55.1% 2023: 55.4% 2022: 58.6% 2021: 60.3%

Cities With the Highest Occupancy Rates

Maine/Acadia Coastal: 67.7% New York City: 65.5% Denver: 65.3% Anaheim, California: 65.2% Boulder, Colorado: 64.3% Outer Banks, North Carolina: 64.3% San Diego: 64.2% Sarasota, Florida: 64.1% Newport, Oregon: 64% Pigeon Forge, Tennessee: 63.9%

Expense Breakdown

High earnings potential comes with its share of expenses. Cleaning costs and OTA host fees are among the top costs owners should be prepared to manage effectively. The average costs for last year included:

Cleaning Fees for Short Term Rentals

Short-term rental owners spent 13% of their earnings on cleanliness. The average cleaning fee for a private or shared room was $47 per stay. For homes with five or more rooms, the average cleaning fee was $303. Room Type Low Average High 1 Bedroom $18 $55 $140 2 Bedrooms $50 $105 $210 3 Bedrooms $75 $150 $295 4 Bedrooms $100 $200 $370 5+ Bedrooms $133 $303 $455

OTA Booking Fees Drive More Direct Bookings

In 2024, the increasing fees and cost of listing vacation rentals on popular OTAs like Airbnb have influenced many businesses like VacayHub.com to create direct bookings via their websites.

The fees for consumers have been estimated to be as much as 48% of the total rental cost which has changed consumer behavior to seek out direct bookings over a third-party website. Below you can see the current service fees for hosts across the major OTAs in the vacation rental industry.

Equipped with the above knowledge, we hope to equip vacation rental owners and renters of in the U.S. with financial knowledge and insights to make better, more informed decisions in how you manage your properties vs. the quickly adding up fees of large providers and the menacing red-tape that hinders top-tier service and specialized customer support.

If you’d like to list your property on a more transparent, fewer fee experience-type platform:

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*Statistics from Magnetic Strategy https://magneticstrategy.com/blog/vacation-rental-statistics/