Short-term rentals post a nine-point RevPAR lead over hotels, with regional gains and losses highlighting shifting market dynamics
Aug 13, 2025
Short-term vacation rentals (STRs) outpaced traditional hotels across every U.S. region in Q2 2025, posting a nine-point RevPAR advantage and reinforcing their appeal to both travelers and investors. New data from Key Data’s U.S. Vacation Rental Market Index—tracking over 13 million listings—shows strong overall demand despite economic headwinds, though performance is becoming more uneven by region and operator. The findings suggest that while STRs remain a high-performing asset class, success now depends more on dynamic pricing, operational agility, and localized market strategies.
Key takeaways
- STRs outperform hotels nationwide: In Q2 2025, STRs led hotels in RevPAR by nine percentage points.
- Resilient demand: Macroeconomic pressures have not yet dented traveler interest, with many regions seeing double-digit gains.
- Regional standouts:
- Mid-Atlantic: RevPAR +11%, occupancy +10%.
- New England: RevPAR +10%, driven by premium pricing and seasonal strength.
- Rocky Mountains: RevPAR +9%, sustained travel appeal.
- Hawaii: RevPAR +6%, holding rates in a high-cost market.
- Southwest: Only decline, RevPAR -4% due to rate compression from oversupply.
- Market fragmentation: Returns vary more widely; operator skill now plays a bigger role than asset class alone.
- Warning signs: Forward September occupancy is down 11% YoY, booking windows are shrinking, and visibility is declining.
- Operational imperatives: Agility, real-time data use, and market-specific strategy are critical as demand patterns grow more volatile.
- Outlook: STRs remain attractive, but precision and adaptability will be essential in navigating the second half of 2025.
Get the full report at Key Data
