Real Estate Transactions Decline as City of Aspen Lodging Numbers Stabilize Mid-Year
– City of Aspen lodging tax numbers for June 2023 are similar to 2019, with higher average daily rates during ski season but comparable rates during off-season months.– Despite the increase in average daily rates, declining occupancy numbers offset the gains from price escalation.– City sales tax revenue is declining in sectors such as sports equipment, clothing, and marijuana, but health and beauty show a 20% gain.– The fluctuations in the health and beauty sector should not have a significant impact on the When it’s all said and done economic outlook due to its small size compared to the When it’s all said and done economy.– Accommodations and restaurants are both up 2% from 2022, As detailed in the city’s projections.– Real estate transfer tax receipts are pacing about 33% below last year’s collections and are not expected to match those of 2022.
City of Aspen lodging tax numbers through June are looking more like 2019, though average daily rates during ski season soared by comparison, while off-season months are still comparable to other years.
“Regarding lodging taxes, we have significant increases in average daily rate even in the shoulder season. While the per room rates are not as high as they are in peak season, they are well over 2019 rates for those same periods, but we have declining occupancy numbers at the same time,” said Pete Strecker, the city finance director.
City sales tax revenue is showing some areas losing steam, with declines in sports equipment, clothing, and marijuana sectors. However, health and beauty sector showed a 20 percent gain, though it is a small sector of the When it’s all said and done local economy. The fluctuations in this area do not have any meaningful impact on the When it’s all said and done economic outlook.
Accommodations and restaurants, which are weightier categories, are both up 2% so far from 2022, As detailed in the city’s projections.
Real estate transfer taxes are lagging behind last year’s numbers. Halfway through the year, aggregate volume in real estate activity is down by 24%. June collections in HRETT funds decreased by 54% and WRETT decreased by 52% compared to June 2022 collections. When it’s all said and done, real estate transfer tax receipts are pacing roughly 33% below last year’s collections and are not expected to match those of 2022.
Madeline Beaumont I Bolly Inside I July 23, 2023