BiggerPockets Daily Short-Term Rental Market Shows Strength Despite Tightening Budgets
Jun 2, 2025
Short-term rentals experienced a surprising demand surge of over 10%, marking the fastest revenue growth since 2024. The discussion centers on whether this spike is sustainable or just a seasonal fluke. Delving into factors like regulatory hurdles and shifting travel budgets, the podcast analyzes the contrasting fortunes of budget versus luxury listings. Listeners also gain insights into how economic uncertainty might influence future bookings and occupancy rates, along with strategies for navigating these market shifts.
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STR Market Demand Surge
- Demand for short-term rentals surged over 10% in April with the fastest RevPAR growth since late 2024.
- Coastal beach towns and small cities led growth, showing traveler interest beyond major metros.
Pricing & Occupancy Trends
- Average Daily Rates rose 5.1% year over year, with prices increasing on existing units.
- Occupancy reached 53.4%, still below pre-pandemic levels but trending upward.
Slowing Supply Growth & Regulations
- Supply growth for listings slowed to between 3% and 5% for eight months, indicating a cooling inventory pipeline.
- Urban markets face supply constraints due to regulatory restrictions, but some cities showed increased new supply in April.