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European short-term rental recovery slowed by lack of supply

Short-term rental (STR) recovery is on the rise in Europe, but disproportionately. The supply of available STRs in Europe has remained below 2019 levels since the start of the COVID-19 pandemic. And although STR supply in March 2022 climbed 5% above March 2021 levels, it still remains -6.5% below March 2019.

European short-term rental occupancy hit a record for March in 2022 at 50.2%, though not entirely down to the increased demand: supply remains 6.5% below March 2019.

According to airdna, supply has redistributed from larger cities to small and rural markets, and demand is following suit: large cities with 5000 listings or more became the smallest demand generator in 2021, down from 31% to 23% of total demand. 

Countries with strong rural markets on the coast or in mountainous regions are even seeing growth in supply, with available listings positive of March 2019 in France (+11%), Germany (+15%), Sweden (+9%), Poland (+9%), and Austria (+9%).

Meanwhile, monthly demand for rural markets with 200 listings or fewer has been higher than 2019 levels since October 2021. Nonetheless, large cities are starting to stage a recovery, with 121% more demand in March 2022 than a year ago.

Average Daily Rates remain high, but they finally dropped 1.4% in March 2022 vs. March 2021. For the spring, they remain lower than last year (-2.4%), but looking ahead to the summer rates are up 3.4% from last year. While inflation continues, this growth is much lower than earlier in the pandemic and shows that rate growth may be beginning to slow.

In March 2022, 10 of the top 20 European countries saw demand higher than 2019: including France (+34%), Greece(+28%), and Germany (+17%), while the Czech Republic, Ireland, and Hungary, all popular for their city destinations, remain at less than half of their 2019 figures.

Summer outlook positive
As of the 1st April, seven of the top 20 European countries were seeing more demand for the summer than at the same point in 2019: Germany is in the lead with +40.6%, followed by Denmark (+22.8%), and Finland (+16.3%).

Compared to last year, summer demand was positive for all top 20 countries, with Greece (230.5%), Portugal (189.0%), and Croatia (153.9%) leading the demand pacing over this time period.

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (, and Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.