As OBX bookings slow, Richmond travelers could land summer deals
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Homes in Corolla, in the Outer Banks. Photo: John Greim/LightRocket via Getty Images
Outer Banks vacation rentals are trending flat for the second year in a row as the popular summer destination for Richmonders heads into its busiest season.
Why it matters: After years of pandemic-era price spikes and fully booked rentals, this could be the year locals can score a deal on an OBX summer vacation.
State of play: The Outer Banks is seeing a market correction after its pandemic booking boom, Lee Nettles, executive director of the Outer Banks Visitors Bureau, tells Axios.
- The string of towns on North Carolina's barrier islands that make up the Outer Banks — including Duck, Nags Head, Hatteras and Corolla — saw a 55% increase in visitor occupancy between September 2019 and 2021, per digital publication TriplePundit.com.
- At the same time, OBX set record-breaking meals and occupancy tax collections nearly every year during the pandemic, Island Free Press reported.
- Now, OBX is seeing "a reset following COVID" and a sort of return to normal visitation, Nettles says.
Yes, but: It's also seeing evidence of the K-shaped economy — with spending growth concentrated at the top and everyone else pulling back — playing out with bookings, mirroring the broader economy.
- Large luxury homes are booking at the typical rate and speed, while smaller rentals are sitting longer, Nettles says.
- "Folks with higher incomes — $150,000-plus — are traveling and spending much like they always have," Nettles says. Everyone else is "just kind of taking their time with it."
The intrigue: That's just one of the "changing traveler dynamics" at play for Outer Banks' $2.7 billion tourism economy.
- In recent years, more OBX vacationers have been waiting longer to book their stays instead of planning months ahead.
- More also appear to be eyeing shorter stays, like a long weekend getaway or midweek trip instead of a full week, Nettles says.
- Price could be another factor keeping some vacationers on the sidelines longer.
By the numbers: Average daily rates for OBX vacation rental homes jumped 34% between 2019 and 2024, per Outer Banks Coastal Life.
- Luxury rentals, ones with eight or more bedrooms, saw an average cost increase of 42% over the same period.
- For some homes, the price jump was even larger — at least according to the flood of posts to OBX tourism forums, where longtime visitors say they've been priced out.
- Prices for Outer Banks vacation rentals vary widely, but small or mid-size rentals can cost up to $13,000 a week in peak season and luxury homes up to $34,000, per OBX property management firm Resort Realty.
What they're saying: The cost to rent a home went up to meet demand during COVID, but elevated prices held even after demand went down, Nettles says.
- Now, the return to normal visitation will likely benefit consumers who should be able to "find some good deals," he says.
- Plus, an Outer Banks vacation still offers a "tremendous value," Nettles says. And its beaches are always free.
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