Vacation rentals outpace hotels, but a growing divide is reshaping the US market

Key Data’s Q2 2025 Index reveals clear regional winners, growing volatility, and the emergence of a more mature, and more demanding, short-term rental landscape

Santa Rosa Beach, Fla., 7 August 2025 — The US vacation rental market isn’t just holding its ground; it’s pulling ahead.

While much of the travel sector contended with shorter booking windows, inflationary pressure, and uneven demand in Q2, vacation rentals proved remarkably resilient. 

According to the Q2 2025 Vacation Rental Market Index by Key Data — the leading provider of real-time market intelligence and benchmarking for the global short-term rental (STR) industry — STRs outperformed hotels in every region across the US, with an average RevPAR (revenue per available rental) advantage of 9 percentage points¹. 

That resilience, drawn from performance data across 13 million listings, signals a sector that’s not just weathering market challenges; it’s evolving.

However, that strength isn’t evenly distributed. While many operators are thriving, others are starting to feel the strain. Key Data’s analysis reveals a widening divide between high-performing and under-pressure regions, and between operators actively adapting to change and those falling behind. 

Where STRs are winning 

Several regions posted impressive year-over-year growth in RevPAR, including:

• Mid-Atlantic: +11% RevPAR YoY, driven by a +10% increase in occupancy
• New England: +10% RevPAR, bolstered by seasonal demand and premium pricing
• Rocky Mountains: +9% RevPAR, sustained by consistent traveler interest and balanced growth
• Hawaiian Islands: +6% RevPAR, maintaining strong rate integrity in a competitive climate

In contrast, the Southwest saw the steepest drop, with RevPAR falling -4% YoY and new supply increased pressure on rates.

Looking ahead, the report suggests that even the strongest markets aren’t immune to emerging pressures. Forward occupancy for September is down 11% year over year, and booking windows have shortened across key summer months, compressing the timeframe for both guests and operators to act. While RevPAR remains strong in several regions, the landscape is becoming more fragmented — and success increasingly depends on speed, strategy, and the ability to respond in real time.

Melanie Brown, VP of Data Insights at Key Data, said: “Performance is no longer just about location or seasonality. We’re seeing the STR sector evolve from momentum to maturity. Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive. The ability to track booking behavior, adjust pricing dynamically, and execute quickly is now what separates growth from stagnation. The performance gap is no longer regional; it’s operational.”

The full Q2 2025 Vacation Rental Market Index, including regional breakdowns, forward-looking demand trends, and channel share analysis, is available now at https://www.keydatadashboard.com/us-quarterly-report. 

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Notes to Editors:

¹All data cited in this release is sourced from Key Data’s Q2 2025 Vacation Rental Market Index, which tracks real-time performance across thousands of short-term rental properties in all 50US states. The Index includes anonymized reservation data from integrated property management systems, covering demand, revenue, pricing, and guest behavior trends.

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Amy Deverson, Key Data

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About Key Data

Key Data is the leading performance analytics and benchmarking platform for the short-term rental industry. Trusted by property managers, owners, investors, and destination organizations worldwide, Key Data delivers the most accurate, real-time insights available – sourced directly from reservations across 500+ global markets. The platform uniquely combines direct PMS data with OTA data, offering unmatched visibility into portfolio and market performance. With 45+ forward-looking KPIs, intuitive dashboards, and daily updates, Key Data empowers users to make smarter pricing, marketing, and growth decisions. Key Data is the exclusive data partner of the Vacation Rental Management Association (VRMA).

Learn more at keydatadashboard.com.