According to the Q2 2025 Vacation Rental Market Index by Key Data – leading provider of real-time market intelligence and benchmarking for the global short-term rental (STR) industry – STRs outperformed hotels in every region across the US, with an average RevPAR (revenue per available rental) advantage of 9 percentage points.
That resilience, drawn from performance data across 13 million listings, signals a sector that’s not just weathering market challenges; it’s evolving.
However, that strength isn’t evenly distributed. While many operators are thriving, others are starting to feel the strain. Key Data’s analysis reveals a widening divide between high-performing and under-pressure regions, and between operators actively adapting to change and those falling behind.
Where STRs are winning
Several regions posted impressive year-over-year growth in RevPAR, including:
- Mid-Atlantic: +11% RevPAR YoY, driven by a +10% increase in occupancy
- New England: +10% RevPAR, bolstered by seasonal demand and premium pricing
- Rocky Mountains: +9% RevPAR, sustained by consistent traveler interest and balanced growth
- Hawaiian Islands: +6% RevPAR, maintaining strong rate integrity in a competitive climate
In contrast, the Southwest saw the steepest drop, with RevPAR falling -4% YoY and new supply increased pressure on rates.
Looking ahead, the report suggests that even the strongest markets aren’t immune to emerging pressures. Forward occupancy for September is down 11% year over year, and booking windows have shortened across key summer months, compressing the timeframe for both guests and operators to act. While RevPAR remains strong in several regions, the landscape is becoming more fragmented — and success increasingly depends on speed, strategy, and the ability to respond in real time.
Melanie Brown, VP of Data Insights at Key Data, said: “Performance is no longer just about location or seasonality. We’re seeing the STR sector evolve from momentum to maturity. Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive. The ability to track booking behavior, adjust pricing dynamically, and execute quickly is now what separates growth from stagnation. The performance gap is no longer regional; it’s operational.
