SHORT-TERM-RENTALS
SHORT-TERM-RENTALS
Here’ s how to position yourself for success in 2025 and beyond in the Short-term-rental market:
1. The Numbers still work: STRs are outperforming Traditional Rentals
Despite global economic uncertainty, the financial fundamentals of STRs remain compelling. In fact, across many markets, short-term rentals are outperforming long-term rentals by wide margins.
In 2024, Airbnb reported a 12 % year-on-year revenue increase in Q4 alone, and Booking Holdings( parent company of Booking. com) saw alternative accommodations make up over a third of all room nights. This is a sharp uptick from pre-pandemic levels.
Average global occupancy rates for STRs now hover between 50- 60 %, with many top-performing listings achieving 70 % or higher, particularly in leisure-heavy or remote-worker-friendly areas.
ADR( Average Daily Rate) has also risen in key markets. For example, Europe saw an 18.9 % increase in ADR during the second half of 2024, and the U. S. saw STRs in second-tier cities generate $ 3,000- $ 5,000 + in monthly gross revenue.
In South Africa, STR performance is even more eye-catching. Cape Town, now home to over 21,000 active Airbnb listings, is globally recognised as a premier destination for both leisure and remote work travellers.
On the Atlantic Seaboard, annual STR rental yields can hit 10- 15 %, with some hosts reporting 30- 50 % more income than they would earn from longterm leases especially during the December – March peak.
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