Denver’s short-term rental industry rebounded in 2021 but below 2019 – Denver, Colorado
People staying in Denver-licensed short-term rental properties spent about $ 28 million more than last year than in 2020, but still lag behind what they brought before the pandemic. increase.
According to Business Den’s analysis using tax revenue data provided by the city, guests paid $ 88 million to stay in properties commonly booked through companies such as Airbnb and Vrbo in 2021.
That total was well above 2020, when COVID limits peaked and visitors spent about $ 60 million on short-term rentals in the city. But before the pandemic in 2019, real estate saw revenues well below $ 112 million.
Rents brought a total tax revenue of $ 8.2 million to the city in 2021. The tax rate for city guests is estimated at 10.75% of the total cost of accommodation with less than 50 rooms.
Jamie Lane of Denver-based short-term rental data company AirDNA told BusinessDen that more people are starting to travel again.
“In most US cities, travel patterns will return to normal, and we expect to return to 2019 levels in 2022,” Lane said. “In the second half of this year, we expect a pretty good recovery with the return of overseas travel from abroad.”
Before COVID actually started, 2020 was a good start for short-term rentals in Denver. According to tax data, they saw $ 10.7 million in revenue that January. But in April of that year, they withdrew about $ 462,000.
The city’s average nightly rate for short-term rentals was as high as $ 187 last July, but dropped to about $ 170 in early 2022. According to AirDNA.. Occupancy has also dropped from 93% in July to about 80%, but has historically increased even months before the summer of COVID.
As BusinessDen previously reportedLarger homes with more rooms are booked at much higher rates in the fall than smaller apartments and condos near and around downtown and business districts.
The number of valid licenses for short-term rentals in August 2019 was approximately 2,700. After the outbreak of the pandemic, it decreased to 1,877, the lowest number in three years, in January 2021. As of December 1, Denver has 2,113 valid licenses. ..
According to Lane, the surge in Omicron variants had a slight impact on short-term rents, but the recession was “not terrible.” Denver’s short-term rent in October raised about $ 6.6 million, but fell to $ 6 million in November. Then in December, the city’s short-term rent again raised about $ 6.6 million.
“But overall, the last quarter has been the best quarter for short-term rentals in Denver since the pandemic,” Lane said. “From the beginning of the year to the summer, demand decreased by about 30% compared to 2019. (In early autumn) it decreased by only about 17%, but November was the best month.”
According to Lane, short-term rental bookings in Denver in January were about 19% below pre-pandemic levels, while big cities such as Los Angeles and Houston were still about 45% below.
Denver’s short-term rental industry rebounded in 2021 but below 2019 Source link Denver’s short-term rental industry rebounded in 2021 but below 2019