Fourth Quarter Performance for the Mid-Atlantic States
The Mid-Atlantic region traditionally has a busy summer season with relatively low occupancy during the rest of the year. As in many markets, the pandemic sparked increased demand for the off-season.
For the final quarter of the year, the adjusted paid occupancy rate jumped from 19% in 2019 to 36% in 2020. Rates and RevPAR increased accordingly and the average rental unit’s nightly revenue, as measured by Adjusted RevPAR, increased by 57% from Q4 2019 to Q4 2020. During 2021, occupancy dropped slightly from its 2020 peak. That trend continued this year, and the occupancy rate for the quarter on the books is 25%, down dramatically from 36% in 2020 and 31% in 2021. As a result, Adjusted RevPAR has fallen to $67, down from $87 last year.
It’s important to note that this is still substantially higher than $39 in 2019.?While some of this shift is a return to normal seasonal trends, increased supply has also been a factor; active listings on Airbnb and Vrbo have increased by approximately 12% since December 2021.?Travel demand remains high but there is more competition among rentals to win those reservations.