From Airbnb to Forever Homes: How Short-Term Rental Occupancy Rates Impact Long-Term Housing Supply
In the ever-evolving real estate market, short-term rentals have become a popular option for homeowners and investors alike. However, the impact of short-term rental occupancy rates on long-term housing supply is a topic of much debate. In this article, we'll explore the relationship between short-term rental occupancy rates and the number of homes available for purchase or rent.
Short-Term Rental Occupancy Rates by City
Let's take a look at the short-term rental occupancy rates for some cities in the US. According to our data, the top 5 cities with the highest short-term rental occupancy rates are:
On the other hand, the bottom 5 cities with the lowest short-term rental occupancy rates are:
- Bay City, TX: 39.5%
- Benton Heights, MI: 25%
- Ventura, IA: 27%
- Long Hill, CT: 45%
- Mulberry, SC: 30%
It's worth noting that these occupancy rates can have a significant impact on the availability of homes for purchase or rent. For example, in Riviera Beach, FL, the high occupancy rate of 90% means that there are likely fewer homes available for purchase or rent, which can drive up prices and make it more difficult for potential buyers or renters to find a home.
Average Daily Rate (ADR) Comparison
Another important factor to consider is the Average Daily Rate (ADR) of short-term rentals. The ADR is the average amount of money earned per day from short-term rentals. According to our data, the top 5 cities with the highest ADRs are:
- Riviera Beach, FL: $858
- Beverly Beach, FL: $552.5
- Ocala Estates, FL: $182
- Bay City, TX: $136.83
- Solana, FL: $290.31
On the other hand, the bottom 5 cities with the lowest ADRs are:
- Robinhood, MS: $105
- Benton Heights, MI: $118.75
- Ventura, IA: $375
- Long Hill, CT: $160
- Mulberry, SC: $529
The ADR can have a significant impact on the profitability of short-term rentals. For example, in Riviera Beach, FL, the high ADR of $858 means that owners of short-term rentals can earn a significant amount of money per day, which can make up for the high occupancy rate.
Market Trends and Insights
As we can see from the data, there are significant differences in short-term rental occupancy rates and ADRs across different cities. These differences can be attributed to a variety of factors, including local market trends, competition, and demand. By analyzing these trends and insights, investors and homeowners can make informed decisions about their short-term rental strategies and long-term housing supply.
Conclusion
In conclusion, the relationship between short-term rental occupancy rates and long-term housing supply is complex and multifaceted. By analyzing the data and insights provided above, we can see that there are significant differences in occupancy rates and ADRs across different cities. These differences can have a significant impact on the availability of homes for purchase or rent and the profitability of short-term rentals. By understanding these trends and insights, investors and homeowners can make informed decisions about their short-term rental strategies and long-term housing supply.
For more information on short-term rental trends and insights, check out our other articles on the topic, including top short-term rental markets in Virginia, the evolving short-term rental market in Utah, and the top short-term rental markets in Washington for 2025.
