It's my belief that the
DVC points will be a bit screwed up for a few years. I think it'll be 2023 before we see things back to normal on room availability...but possibly things even be impacted by the points glut into 2025.
A few things to keep in mind:
ALL DVC resorts were closed for 3-4 months. Aulani was closed for nearly 8 months. Grand Californian was closed for over a year! It only just recently reopened. Off hand, I'd say we're talking around 10 million points of inventory lost.
Even AFTER reopening, it was many months after the WDW resorts reopened before the DVC resorts were back to being booked to capacity again. The inventory was available, but no one was booking it. Probably another 10 million or so points of inventory wasted.
ADDITIONALLY, DVC waved pretty much ALL of the ways that points were lost due to expiration until very recently. Depending on circumstances, points were extended beyond their original expiration dates, holding points were waved, points were unborrowed, normal banking deadlines were waived.
If I had a Feb use year, I could've cancelled a week long trip with dates from December 24-31 on December 23rd, and bank ALL the points into the next use year without any penalties or holding on my points.
Basically, there are millions and millions of extra points out there and we can still bank points forward. It'll be a LONG time before enough points are "lost" out of the system from people not banking their points in time to make up for it. I think things will be more back to normal in 2023, but I wouldn't be surprised if there's still availability issues into 2025 because of the shutdowns.
The only way it really gets resolved more quickly is if DVC institutes BANKING restrictions. IF they were to put a 50% cap on BANKING points instead of borrowing, then the whole thing gets fixed in a year...but you'll then have swarms of angry people who have hundreds of points expiring and no way to actually use or bank them.
I honestly think that EVERYTHING is going to be GONE at the 7 month mark...with a few straggling days on some 1-bedrooms. Most of the time, a lot of the hard-to-book resorts will likely be completely booked at 10 months, or even right as the booking window opens at 11 months for a year or two.