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US: US short-term rentals outperformed hotels across every region in Q2 2025, according to the latest Vacation Rental Market Index from Key Data.
The report, which tracks performance across 13 million listings, found STRs achieved an average revenue per available rental (RevPAR) advantage of nine percentage points over hotels. The findings point to a sector that continues to demonstrate resilience despite shorter booking windows, inflationary pressures, and uneven demand in parts of the wider travel industry.
Several regions posted year-on-year RevPAR gains, including the Mid-Atlantic (+11 per cent), New England (+10 per cent), the Rocky Mountains (+9 per cent), and the Hawaiian Islands (+6 per cent). In contrast, the Southwest recorded the sharpest decline, with RevPAR falling four per cent as new supply placed pressure on rates.
The report also highlights a growing divide between high-performing and under-pressure markets. Forward occupancy for September is down 11 per cent compared to last year, while booking windows have shortened across key summer months, compressing the timeframe for both guests and operators to act.
Melanie Brown, VP of data insights at Key Data, said the STR sector was entering a more mature phase: “Performance is no longer just about location or seasonality. Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive. The ability to track booking behaviour, adjust pricing dynamically, and execute quickly is now what separates growth from stagnation.”
The full Q2 2025 Vacation Rental Market Index, including regional breakdowns and forward-looking demand trends, is available here.
Highlights:
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Key Data’s Q2 2025 Index shows STRs outperform hotels in all US regions
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STRs achieved a nine-point RevPAR advantage over hotels
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Mid-Atlantic, New England, and Rocky Mountains posted double-digit growth
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Southwest saw the steepest decline due to increased supply
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Forward occupancy for September down 11% year-on-year
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Booking windows have shortened, increasing operational pressures
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Success depends on responsiveness, dynamic pricing, and speed to market
