None of the the 50 largest short-term rental markets made the top 10 highest occupancy markets, but 14 achieved an occupancy of more than 80%, up from six markets in June. The highest overall occupancies were in Myrtle Beach, SC (84.6%), Hilton Head, SC (84.1%) and Cape Cod, MA (84.0%) which are all popular summer beach destinations.

Higher occupancy does not always translate to more guests. Demand for STRs has fallen by more than 25% in Oahu, HI and Cape Cod, MA vs 2019.  A big reason for that decline is a large reduction in available listings. In Cape Cod there are 34% fewer available listings than prior to the pandemic, while Oahu has lost more than 42% of its available supply.  

We suspect that many of these homes are second homes that are being used by their owners and many of them may revert back to short-term rentals as people return to in-person school and work.

With these top destinations essentially full, demand has expanded to small towns/cities throughout the country where demand was up more than 35% above 2019 levels. Looking again at the top 50 markets, Big Bear, CA (+57.5%), Cape Coral/Fort Myers, FL (+56.4), and Ft. Lauderdale, FL (+46.6%) saw the biggest gains in demand in July while Boston (-55.4%), New York (-52.2%), and Los Angeles (-51.1%) saw demand remain 50% below 2019 levels. 

Source link