Since moving to Miami, Dylan Malitsky has been listing his Denver-area home on the website. He told MarketWatch that he was able to get back-to-back-to-back bookings for weeks at a time.
Malitsky didn't have any experience in real estate. I thought I was the most successful business person ever. I thought I would be able to build equity and make money.
He said his bookings fell off a cliff in August, after he brought in about $60,000 since he started renting. The start of the ski season in December and January is a major tourist attraction for the Denver region.
He's not the only one. There is a group of people on Facebook who are commiserating about the decline in the number of people in their group.
There are many more hosts on the platform, prices have risen and travelers may be cutting back, but the experiences of hosts from all over the country show that this may be one of the reasons for the fall in Occupancy.
AirDNA tracks listings and rates for both Vrbo andAirbnb, which are owned by the same company. After two years of extended seasonality and many destinations benefiting from longer stays and more work from anywhere flexibility, we are now seeing a correction towards a new benchmark year.
It seems like the issue is more about supply than demand. Malitsky put his properties up for rent when short-term rentals rose.
There were 1.38 million short-term U.S. listings on Vrbo in September, up 23.2% from a year ago and an increase of 8.7% from the previous month. Occupancy fell in September but rose from the same month a year ago.
In a recent note to investors, Naved Khan, an analyst with Truist Securities, wrote that while the US has seen a decline in the number of hotels, the decline is due to an increase in the number of rooms. Occupancy fell in the third quarter.
According to Khan, the average daily rate for the U.S. increased 5% in the third quarter. AirDNA data shows that September average daily rates climbed 5.6% year over year to $265 and were up 31.1% compared with the same month last year.
Demand for short-term rentals has gone up. Demand for Vrbo rentals was higher in September than it was in the same month of the previous year. AirDNA reported that nights booked for future travel were up in comparison to the previous year.
More people are looking to leverage the space they have to earn extra income and quickly, with most newly activated listings getting booked faster compared to a year ago. During the second quarter of this year, the company reported its most profitable second quarter ever, with a record high nights and experiences booked.
She said that the company is constantly checking in with the community to make sure the updates work.
Malitsky blamed the souring economy for people cutting back on travel. He wants to know if he is no longer showing up in searches after the company made some changes to its platform.
Other hosts told MarketWatch that they are looking at other options. Those who bought homes with the sole purpose of renting them on the platform seem to be giving up.
When someone else posted a post about the lack of bookings on Jim's Facebook page, the internet went crazy. He told MarketWatch that he is interviewing long-term tenants for his property and that he is looking to get out.
He and his wife bought the property with his mother-in-law. We went from 80% to zero.
They slashed their prices and got more people to book. They haven't had any bookings in the last six months. He said they would probably cancel if they found a long-term tenant.
He hopes that he isn't making the wrong move. Before everyone else says they need to find long-term tenants, I will leave the market.
In Houston, Amber Melenyzer told MarketWatch this past summer was the least busy in five years. She believes that her area is becoming less saturated, which is why her bookings have begun to pick up again.
Melenyzer said that a lot of people are trying to dump furniture from their homes in order to make money.
She plans to keep her guesthouse because it's attached to her house. She said it was a side hustle. I pay the same regardless of what.
Houston saw a 43.2% increase in new listings in September compared to the same month a year ago.
Malitsky has a home in Miami. He is considering turning his Colorado home into a rental. He has stopped making requests to his guests on the platform.
He said that some hosts on the platform give their guests a laundry list of tasks and then charge a cleaning fee. Don't worry about anything at all. I would like to bring in more people.
The S&P 500 index has fallen 23% so far this year, while shares ofAirbnb have declined 30%. The summer months are expected to be included in the company's third quarter earnings.
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