Over the past eight consecutive quarters, the vacation rental market in Northwest Florida has seen a slow but steady decline in the three leading KPIs of Occupancy, Average Daily Rate (ADR), and RevPAR. The decline has been attributed to a number of circumstances and events—from the world opening up to travel in the aftermath of COVID to inflation and rising interest rates.

However, the most notable driver of the decline in our local market has been the dramatic increase in the supply of vacation rentals. This surge has resulted in downward pressure on Occupancy and therefore on rates. It’s the law of supply and demand: Supply goes up, demand goes down.