Houston’s short-term lodging landscape is evolving, with more units being offered in the metro region and more revenue being generated.

Figures from Key Data Inc., which tracks Vrbo and AirBnb performance, show occupancy in the short-term rental market finished the year at 22.6%, down slightly from 24.6% in 2022. But that decline is due in large part to an increase in overall market inventory. In January 2023, there were approximately 20,300 active units in the metro area. As of January 2024, that figure had increased to 25,100 active units regionwide.

Meanwhile, the average daily rate (ADR), a key metric in the lodging sector, finished the year at $171.86, an increase from $154.65 at the end of 2022.

A recent report from Forbes points to several factors prompting a national resurgence in the short-term rental business. More operators are offering hotel-like amenities and services to better compete for customers. Rising hotel prices nationally and lack of availability in some markets is also contributing to demand for short-term rentals. Add to that an increase in post-pandemic workplace flexibility that’s prompting some to work while on extended travel, which is often cheaper in a short-term rental.

Written by A.J. Mistretta