As inflation rises, more people are considering Airbnb as a way to earn additional income. The number of new Airbnb hosts in the US grew by 50% in Q2 of 2022, compared to the same period last year — a significant boon for the independent accommodation sector.
According to Airbnb, the reasons for the rocket-ship growth are clear. 35% say they are hosting to cover the rising costs of living; 40% are on the platform to obtain more spending money; and 40% are renting their place just to make ends meet.
The influx of new Airbnb hosts is rapidly changing the independent accommodation landscape, and as the industry continues to flourish through 2023, hosts are effortlessly streamlining their business and maximize earnings by using the perfect property management platform.
Let’s break down key factors behind Airbnb’s massive increase of new hosts.
Guest demand is driving Airbnb host growth.
The pandemic has led to a shift in traveler behavior. Millions are more flexible about how they work and where they live, and this has resulted in more people wanting to get away — quite often for longer stays.
These trends have been especially evident in non-urban areas during the pandemic, as people sought to escape cities in favor of rural stays. Active Airbnb listings for non-urban destinations were up nearly 50% in Q2 2022 compared to the same period in 2019. Yet demand has now returned to cities as well, resulting in a growth of urban supply.
Overall, bookings last quarter compared to 2019 grew by 24% — with supply almost exactly matching demand — as new listings totaled 23% in the same period. In other words, Airbnb bookings are on the rise, and more people are launching Airbnbs to meet the demand!
New hosts are motivated by an additional income stream.
Inflation is climbing, and it’s tightening budgets for millions of families worldwide. In June of 2022, the inflation rate hit a whopping 9.1%. This new pricing squeeze is making it difficult for families to cover normal, everyday expenses like groceries and childcare.
Many families are seeking ways to offset the rising prices with new avenues to earn extra income — and plenty are looking to Airbnb for this reason. When inflation rose to 9.1% back in June, reports showed that new Airbnb hosts grew by more than 50% compared to the previous year.
Airbnb is providing the monetary boost that families need to stay afloat. According to the platform, approximately 45% of hosts globally reported that the income earned through hosting has helped them stay in their home — and of that group, more than 20% said that it helped them avoid foreclosure or eviction.
Airbnb hosts are earning more than ever.
One additional reason that families are flocking to Airbnb: Hosts are making more money than ever!
We all know that Airbnb earnings are significant (and growing) – yet the exact figures are quite impressive. Since 2010, hosts have earned a total of $150 billion, including $60 billion in the US. Furthermore, earnings are continuing to rise for hosts. Last quarter, revenue jumped by 58% year over year – and an astounding 73% compared to pre-pandemic times in 2019!
More good news: It’s easier than ever to become a host. To meet growing demands for hosting, Airbnb has created a simple 10-step process for onboarding. Those interested in hosting can learn more at Airbnb.com/Host.
For hosts who’ve been managing a property long-term, it’s more important than ever to have a clear strategy to outshine the competition. Check out our article on How to Create a Vacation Rental Business Plan to ensure your business is optimized for success.
Sources:
https://news.airbnb.com/new-survey-hosts-use-income-to-cover-rising-costs-guests-find-new-travel-spots/
https://news.airbnb.com/airbnb-second-quarter-2022-financial-results/
https://news.airbnb.com/airbnbs-150-billion-host-community/