For more than two decades, Rory Steinel and his wife have been leasing their beautiful beachside home along the Jersey Shore during the bustling summer months. The property has always been highly sought after, with bookings usually being filled for the summer by February.
However, owners like the Steinels are now facing an unprecedented situation as prime weeks in July and August remain unoccupied, highlighting a significant shift in the vacation rental market.
“We’ve never encountered difficulties with renting like this before,” said Rory Steinel.
During the COVID-19 pandemic and leading up to last year, the demand for vacation rentals skyrocketed, allowing owners like the Steinels to increase prices and completely book their properties for the summer. However, this year, popular summer vacation spots across the country are experiencing a decline in occupancy.
Cape Cod, Massachusetts; Maui, Hawaii; Santa Rosa Beach, Florida; and San Diego, California have all seen a decrease compared to last year, as reported by AirDNA, a tracking company that monitors the performance data of 10 million vacation rentals on platforms like Airbnb and Vrbo.
Steinel describes the financial considerations during the evolving rental market as “nerve-wracking.”
“We want to ensure that we can also make a profit, not just cover our expenses,” he said.
Jamie Lane, the chief economist at AirDNA, stated that an increase in international travel and the introduction of new rentals have given renters more choices, resulting in fewer bookings per host.
Lane also mentioned that the market is “definitely shifting towards a renter’s and guest-focused market,” as individuals can now find deals and book last-minute accommodations more easily.
Jeannie Wheat, a seasoned realtor specializing in rentals at the Jersey Shore, reported that the vacation rental market in the area is down by approximately 15% this year. According to Wheat, even a five-bedroom home just a block and a half from the beach, which typically rents for $9,000 per week, is not fully booked. However, she has observed an increase in last-minute bookings compared to previous years.
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