Denver’s short-term rentals recover, but still lag pre-pandemic levels

 

Denver’s short-term rental industry is making a comeback, but more recovery is needed to return to pre-pandemic levels.

Guests paid $54 million to stay at properties commonly booked through companies like Airbnb and Vrbo over the first half of 2022, according to a BusinessDen analysis using tax revenue data provided by the city. That’s $14 million more than the same period last year, and $4 million higher than 2019.

Revenue numbers may be inflated by rising prices, though. The average daily rate of a short-term rental has dramatically increased in 2022, outpacing the previous three years.

However, occupancy rates remain slightly below where they were last year or in 2019, according to data from Denver-based AirDNA, a short-term rental data company.

The number of available listings also remains well below 2019 figures.

“I do expect us to recover above 2019 levels by the end of next year,” said Jamie Lane, vice president of AirDNA.

Once international and business travel fully recover is when the short-term rental market will finally reach and surpass 2019’s numbers, he added.

Denver’s short term rental market is significantly affected by a regulation stipulating that a person may only rent out their primary residence, and that a person may only have one primary residence.

“We’re still below 2019 levels of supply,” Lane said.

He added, “No surprise, the regulations in Denver make it more difficult to add supply even if demand is strong.”

Total spending was higher in the first six months of 2022, but the number of listings and occupancy rates were still lower than in 2019.

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