Los Angeles Leads Nation in Short-Term Rentals

Los Angeles

Los Angeles is the top market in the nation for short-term rental penetration. According to a new report from CBRE, short-term rentals in Los Angeles are equal to 22% of the total hotel inventory in the market. By comparison, the national short-term rental market is 12.2% of the total hotel inventory in the country. L.A. also overtook New York for the top short-term rental market.

“I am not surprised that our area has remained the biggest short-term rental market last year, especially given the fact SoCal is home to a large number of entertainment and media companies as well as many attractions and amusement parks,” Brandon Feighner, a director at CBRE Hotels’ Consulting, tells GlobeSt.com. “Historically, this fact has contributed to demand for accommodations in our region exceeding the supply of traditional hotel rooms, which originally fueled the growth in short-term rental supply. Growth continued throughout the last decade given the desirability of the destination, especially from a leisure perspective as well as the approximately 25% discount in pricing for short-term rentals relative to traditional hotel rooms.”