Puerto Vallarta Airbnb Insights | 2024

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.

Market Factors: Supply and Demand

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.

Forecast: What Lies Ahead

• In the current month of January, occupancy levels show a trend in line with records from previous years, and they are expected to remain stable in the coming weeks. This consistency in occupancy levels suggests a certain predictability in demand during this period.
  
• An interesting phenomenon is the growth in demand for smaller and more affordable units. During the last quarter, one-bedroom apartments experienced an increase in occupancy, reaching an average of 62%, compared to the 52% recorded in two-bedroom apartments. This shift in occupant preferences could be influenced by various reasons, such as the search for more economical options, the trend towards more minimalist lifestyles, or adaptation to new vacation and work dynamics.
  
• In economic terms, it is projected that the strength of the peso will persist, as the Federal Reserve (FED) has indicated the implementation of lower interest rates. This outlook is supported by the stance of the Bank of Mexico (BANXICO), which has announced the intention to maintain rates at current levels. These favorable conditions could have a positive impact on various aspects of the market, from investment to consumption, providing a conducive environment for short-term economic development and growth.

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