Costa Rican Vacation Rental Data
Introduction
The vacation rental market in Costa Rica has seen notable changes between January 2024 and January 2025. A year-over-year comparison of key performance indicators: including total listings, occupancy rates, average daily rate (ADR), and the projected revenue of the average vacation rental if listed for 365 days a year. The data highlights the growth in property listings, shifts in demand for vacation rentals, and the increasing competition among vacation rentals.
Summary of Key Findings
Total Listings: Overall, there was an increase in total listings in all locations analyzed, with some locations experiencing listings growth of over 20%. It’s also worth noting that no locations saw decreases in total listings.
Occupancy Rate: The occupancy was generally stable across all locations, with declines in a couple areas and no huge occupancy growth in any areas.
Average Daily Rate (ADR): The ADR fluctuated across locations with some locations seeing large increases, some seeing large decreases, and others saw no movement.
Key Findings From Notable Locations
Location | % Change in listings | % Change in occupancy rate | % Change in ADR ($) | % Change in revenue |
Costa Rica | + 22.23% | - 1.46% | + 0.06% | - 1.40% |
La Fortuna | + 17.22% | + 0.31% | + 9.40% | + 9.71% |
Nosara | + 19.64% | - 8.13% | + 4.48% | - 4.01% |
Tamarindo | + 9.93% | - 5.34% | + 4.44% | - 1.14% |
Flamingo | + 10.68% | + 2.00% | - 6.81% | - 4.94% |
Costa Rica's vacation rental market saw listings increase across all locations, but demand did not always keep pace. In Nosara, listings grew by 19.64%, and occupancy dropped 8.13%. This would indicate that there are too many vacation rentals in Nosara, or the new vacation rentals are not filling a gap in the market. Similarly, Tamarindo added nearly 9.93% more listings, but occupancy fell by 5.34%.
The projected revenue growth depended on pricing power and occupancy. La Fortuna maintained demand while increasing ADR by 9.40%, leading to a 9.71% revenue boost, the highest among all locations. In contrast, Flamingo saw a 6.81% drop in ADR, despite a 2% rise in occupancy, causing a 4.94% revenue decline. Locations such as Flamingo have a very similar stock of vacation rentals with not much differentiation, so when more vacation rentals are added to the market, prices must drop.
Even small ADR gains did not always lead to revenue growth. Tamarindo’s ADR increased by 4.44%, but its revenue still declined, showing that price increases alone do not offset occupancy drops.
The key takeaway is that balancing supply, maintaining occupancy, and adjusting ADR are crucial for sustaining a successful vacation rental in Costa Rica’s growing vacation rental market.
Conclusion
Locations that managed to maintain a stable or growing occupancy saw the most projected revenue growth over the last year, showing the importance of keeping strong demand. The strongest performing locations were those that successfully balanced an increasing number of rentals with steady occupancy rates, for example La Fortuna. Higher ADR, when combined with stable occupancy, led to positive revenue trends, as seen in locations where prices are able to rise without negatively affecting occupancy.
On the other hand, too many new vacation rentals were clearly a factor in revenue drops in certain locations. Fast increases in listings without a rise in demand for the area resulted in declining projected revenue. Additionally, ADR declines often led to revenue drops, even in cases where occupancy remained high.
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