New industry research reveals how short-term rental hosts, co-hosts, and property managers are adapting as competition intensifies and technology reshapes the market
SAN FRANCISCO, 6 January 2026 – The short-term rental (STR) market is entering a tougher, more competitive phase, according to new research released today by property management software company Hospitable1.
Nearly half of hosts and property managers, 47.1%, say increased competition in their local market impacted their business in 2025. The finding comes from Hospitable’s newly released 2026 Evolving STR Landscape report and reflects a market where success is increasingly shaped by execution, efficiency, and differentiation.
Competition was not an isolated pressure. Rising operational costs affected 45.1% of hosts and managers, while 44.6% reported reduced guest demand or shorter stays. A further 42.4% cited economic uncertainty. The close clustering of these figures suggests that many operators experienced several pressures at once, creating a far less forgiving operating environment than in previous years.
Despite this, confidence in STRs remains intact. Nearly 60% of hosts and property managers plan to expand their portfolios in 2026. However, growth is becoming more selective. Almost two in five operators either do not plan to expand or remain unsure, indicating a shift away from aggressive portfolio growth toward more disciplined, performance-led decision-making.
Technology is playing a central role in how operators respond. Almost all respondents, 97.7%, say technology is critical to remaining competitive. Automation and AI are now embedded across core workflows, from guest communication to pricing. More than 80% of hosts and managers use AI for guest messaging, and over half trust it to manage guest interactions and reviews accurately. Almost 60% of hosts say automation and AI save them at least two hours per week, with over 20% saving six hours or more.
Looking ahead, operators see automation and AI as the most significant force shaping the industry in 2026. Nearly a quarter ranked smarter automation as the top trend for the year ahead, ahead of regulation, travel behavior changes, or mid-term stays, signaling a clear belief that technology will play a decisive role as competition intensifies.
Pierre-Camille Hamana, CEO and Founder of Hospitable, said: “We’re seeing a market where running a short-term rental well matters more than ever. Competition has increased, costs are tighter, and operators are having to be more deliberate about how they grow and how they operate.”
Launched in 2016 as a time-saving PMS, Hospitable has evolved into a short-term rental super app that goes beyond traditional property management, automating guest messaging with AI, optimizing nightly rates, managing rental agreements and security deposits, coordinating teams, and powering direct booking websites with built-in payments and property protection.
Access the full 2026 Evolving STR Landscape report here. It includes a detailed examination of the challenges and opportunities facing hosts, co-hosts, and property managers across the short-term rental industry.
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Notes to editors:
1Hospitable’s 2026 STR Industry Report. The survey was conducted in November 2025 and includes responses from 554 short-term rental hosts and property managers operating across multiple regions and property types.
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About Hospitable
Hospitable is the short-term rental industry’s premier super app, empowering hosts and property managers to streamline operations, grow their businesses, and reclaim valuable time. Initially launched in 2016 as a time-saving PMS, Hospitable has evolved into a powerful toolkit that goes beyond traditional property management. The platform enables hosts at every scale to automate guest messaging with AI, optimize nightly rates, simplify rental agreements and deposits, coordinate teams, and confidently launch direct booking websites with built-in payments and property protection. Hospitable supports tens of thousands of hosts worldwide, having automated over 108 million messages and processed $5.2 billion in reservation income in 2025. For more information, visit www.hospitable.com.
