COVID-19

Short-term rentals down amid pandemic

Amy Scott May 21, 2020
Heard on: Marketplace
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Joggers pass a beachfront bungalow in Southern California. People who now work remotely might seek a temporary stay in a pleasant spot. Frederic J. Brown/Getty Images
COVID-19

Short-term rentals down amid pandemic

Amy Scott May 21, 2020
Joggers pass a beachfront bungalow in Southern California. People who now work remotely might seek a temporary stay in a pleasant spot. Frederic J. Brown/Getty Images
HTML EMBED:
COPY

All the travel we’re not doing because of COVID-19, for business or pleasure, has hit the market for short-term rentals pretty hard. Airbnb announced this month it’s laying off a quarter of its workforce — almost 2,000 people — and its long-awaited IPO may be on hold until next year. 

Meanwhile, a new report suggests some owners of those properties may be pivoting to longer-term, seasonal rentals. In the 100 largest metro areas, furnished and seasonal rentals are up 21 percent since the end of February.

Kimberly Kent is an art broker, painter and former Airbnb host in Portland, Oregon. In March, she started renting her two studio apartments to traveling nurses for one- to three-month stays.

“We were getting about $100 a night originally with Airbnb. And what we’re getting with these folks now is $1,200 a month,” Kent said.

That’s less than half what she made when fully booked on Airbnb. It wasn’t just the coronavirus; a saturated market also played a role.

But as short-term bookings have dried up during the pandemic, new data from the listing site Realtor.com suggests a lot of hosts may be shifting to longer-term rentals. Tourism hotspots like Nashville, Tennessee; Austin, Texas; Orlando, Florida; and Las Vegas have seen the biggest increases. George Ratiu, senior economist at Realtor.com, said for many owners facing mortgage bills, “a slightly longer-term rental is a viable alternative, in the sense to bridge the gap between the lack of demand right now and a possible rebound later.”

But is there enough demand for those slightly longer-term rentals? Joshua Clark, an economist at Zillow, said a lot of renters may want more flexibility.

“If I’m a renter right now, and I’m seeing all the chaos going on in employment, I don’t know how long this thing’s gonna last,” Clark said. “I may not want to sign up for a full-year lease.”

And then there are all the people, especially in crowded cities, who may be looking to escape to the beach or the country.

Vi Nguyen, CEO of Homads — a marketplace for medium-term rentals — said with many employers allowing remote work, “employees are thinking, ‘Hey, I don’t actually even have to be here. I can have something a little bit more enjoyable, right?’ “

Not to be left out, Airbnb says more of its hosts are booking longer term, too, and offering discounts for stays of a month or more.

COVID-19 Economy FAQs

New COVID-19 cases and deaths in the U.S. are on the rise. How are Americans reacting?

Johns Hopkins University reports the seven-day average of new cases hit 68,767 on Sunday  — a record — eclipsing the previous record hit in late July during the second, summer wave of infection. A funny thing is happening with consumers though: Even as COVID-19 cases rise, Americans don’t appear to be shying away from stepping indoors to shop or eat or exercise. Morning Consult asked consumers how comfortable they feel going out to eat, to the shopping mall or on a vacation. And their willingness has been rising. Surveys find consumers’ attitudes vary by age and income, and by political affiliation, said Chris Jackson, who heads up polling at Ipsos.

How many people are flying? Has traveled picked up?

Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.

How are Americans feeling about their finances?

Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.

Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.

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