Many urban markets across the United States experienced decreased occupancy rates this spring due to the COVID-19 pandemic. Nashville was among the destinations with lower spring occupancy rates, but the market’s forecast for the next few months is improving.
Nashville vacation rentals had a good start to the year; January total occupancy (guest, owner, and held/blocked nights) was higher than in 2018 and 2019. The tide soon turned and March and April occupancy rates were down from 2019 by 28% and 23%, respectively, at the height of COVID-19 travel restrictions. Total vacation rental occupancy was stronger in May and June at 56% for both months, down only 10% from 2019.
Vacation rental occupancy can be measured in a variety of ways. One of Key Data’s strengths is the ability to differentiate between the paid, owner, and hold occupancy rates due to our direct integrations with reservation systems. The paid occupancy rate for May and June is higher than in April, but close to the same as in March. While total occupancy increased by 13% from April to May, about 6% of that increase was due to the increased number of nights blocked for maintenance or COVID-19 restrictions.
The outlook for the rest of the summer season is mixed. Total occupancy for Nashville rentals is pacing between 6% and 8% higher than last year for July, August, and September. However, much of this increase can be attributed to blocked nights, rather than paid nights. For example, the July paid occupancy rate is down 7% from last year (29% in 2019 to 22% in 2020) while the blocked occupancy rate is up by 12% (15% in 2019 to 27% in 2020).
Contact us at firstname.lastname@example.org for the data behind the graphs or for a more in-depth look at the Nashville vacation rental market.