The US vacation rental market is pulling ahead of the traditional hotel sector.
While much of the travel sector contended with shorter booking windows and uneven demand in Q2, vacation rentals have proved resilient, a new report suggests.
According to the Q2 2025 Vacation Rental Market Index by Key Data, STRs outperformed hotels in every region across the US, with an average RevPAR (revenue per available rental) advantage of 9 percentage points1.
Key Data is a major provider of real-time market intelligence and benchmarking for the global short-term rental industry.
The data covers 13 million listings, and signals the STR sector is evolving.
Still, its performance isn’t evenly distributed. While many operators are thriving, others are feeling 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.
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
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 hindering rate growth.
The report suggests that even the strongest markets aren’t immune to emerging pressures.
Forward occupancy for September is down 11% year over year, it finds, and booking windows have shortened across key summer months.
While RevPAR remains strong in several regions, the landscape is becoming more fragmented.
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. 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.”
