US Short-Term Rentals Set to End 2025 on a Positive Note

Forward-looking data from Key Data suggests pricing strength and renewed stability across the US short-term rental market

The US short-term rental sector is set to close 2025 on a strong note, driven by the demand for holiday travel that is leading to increased rates and revenue.

Key Data’s new analysis indicates:

“The data for winter shows a market that has found stability after a prolonged correction phase. December’s forward bookings indicate the highest growth in rates and revenue of the year, with an Average Daily Rate (ADR) increase of 6% and Revenue per Available Rental (RevPAR) up by 7% year-over-year.”

— Melanie Brown, VP Data Analytics and Insights, Key Data
Translation: The current data reflects a returning confidence among travelers and property managers, many of whom have maintained pricing amidst a downturn.

As the year concludes, the December projections are a clear indication of a stabilizing market, with guests paying more per night and managers capitalizing on their pricing strategies.

Regional performance keys into holiday demand:

• New England: RevPAR +5% YoY
• Hawaiian Islands: RevPAR +5%
• Rocky Mountains: RevPAR +4%
• Midwest US: RevPAR +4%
• The Southwest posts a +3% RevPAR growth, while the Southeast shows a slight decline of -1% after an intense summer.

Traveler behavior changes:
The trend towards shorter trips and later bookings continues, with average stays decreasing from 6.6 to 6.0 nights, reflecting a 9% year-over-year drop.

Looking ahead: As the short-term rental market moves into 2026, Key Data predicts further growth, fortified by the confidence returning to travelers and managers alike.