One of the top destinations of Mexico's Pacific coast, Puerto Vallarta continues to be a highly sought after destination for travelers seeking sun, beach and relaxation. However, like any thriving destination, the short-term rental industry in Puerto Vallarta has seen its ups and downs. If you are curious about the market landscape, what happened in the last quarter of 2023, and Airbnb insights in Puerto Vallarta for 2024, check out our full report below.
The Numbers: What's Happening in Puerto Vallarta?
During the most recent quarter, there was a notable decline of 19% in year-over-year occupancy rates within the short-term rental market in Puerto Vallarta, compared to the same period in Q4 2022. This dip resulted in a corresponding 7% reduction in monthly revenues. Despite this downturn, the negative impact was mitigated to some extent by an increase in market rates, which saw an 8% year-over-year rise. In essence, the higher market rates helped offset the adverse effects of the reduced occupancy, contributing to a more moderate impact on overall revenue.
There was a significant change in the supply dynamics of the short-term rental market in December, as the number of active listings experienced a month-over-month decrease for the first time in three years. Despite this decline, there remains a positive trend with a year-over-year growth of +13%. In essence, while the immediate monthly figures show a reduction in active units, the market has demonstrated resilience and expansion when viewed on a year-over-year basis.
Based on data obtained from the Department of Tourism, the demand for tourism services has remained relatively constant, showing no significant deviation from the figures reported in the previous year. The number of tourists has remained flat, indicating a stability in overall demand without any notable increase or decrease compared to the corresponding period in the preceding year.
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