Vacation rentals outperformed hotels across all U.S. regions in the second quarter of 2025, according to new data released Wednesday by Key Data, a leading provider of short-term rental (STR) market intelligence and benchmarking.
The Q2 2025 Vacation Rental Market Index shows that vacation rentals had a 9-percentage-point advantage in revenue per available rental (RevPAR) compared to hotels.
The data, based on performance across more than 13 million listings, suggests the STR sector is not only resilient but maturing in ways that are reshaping how operators succeed. While much of the broader travel sector faced inflation pressures, tighter booking windows, and inconsistent demand during Q2, short-term rentals continued to post strong returns in most markets.
However, the report highlights a growing divide between top-performing regions and those under pressure, as well as a performance gap between responsive operators and those slow to adapt. “Performance is no longer just about location or seasonality,” said Melanie Brown, Vice President of Data Insights at Key Data. “Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive.”
Several regions showed double-digit or near-double-digit year-over-year RevPAR growth. The Mid-Atlantic region saw an 11% increase, fueled by a 10% rise in occupancy. New England recorded a 10% RevPAR boost, supported by strong seasonal demand and higher rates. The Rocky Mountains region posted a 9% increase, while the Hawaiian Islands saw a 6% rise, maintaining strong pricing in a competitive market.
Not all markets performed as well. The Southwest experienced a 4% decline in RevPAR, attributed to an increase in new supply that put downward pressure on nightly rates. Key Data noted that regional disparities are becoming more pronounced, underscoring the importance of flexible pricing strategies and real-time data use.
Forward-looking data for September indicates potential softening in demand. National forward occupancy is down 11% compared to the same period last year, and booking windows have shortened across key summer months. This compression in lead time means operators have less time to respond to market changes and adjust strategies accordingly.
According to the report, the short-term rental sector is moving from a phase of rapid growth to one of operational sophistication. Success now depends more on an operator’s ability to monitor guest behavior, adjust pricing dynamically, and react quickly to shifting trends.
The full Q2 2025 Vacation Rental Market Index, which includes regional performance data, forward demand forecasts, and booking channel analysis, is available at Key Data’s website.
