U.S. short-term rental market stabilizes entering 2026

Pricing discipline and late-stage demand shape performance outlook for property managers

The Q1 2026 U.S. Key Data Index report shows a short-term rental market that is stabilizing rather than accelerating as it moves into 2026. Demand indicators such as occupancy and booking windows remain under pressure, but consistent ADR growth has supported revenue performance. Travelers are still active but are booking closer to arrival and opting for shorter stays, signaling cautious but resilient behavior. Overall, steady pricing, improving revenue efficiency, and a more balanced supply-demand environment provide a firmer foundation for operators heading into the year.

Key takeaways

• Market stabilization over growth: The U.S. short-term rental market is no longer declining, but growth remains modest, with signs of balance rather than acceleration.
• Pricing power holds firm: ADR increased through late 2025 and is pacing positively into early 2026, offsetting softer occupancy and supporting RevPAR.
• Occupancy under near-term pressure: Late-2025 occupancy improved year over year, but on-the-books data for early 2026 points to softer forward demand.
• Shorter booking windows persist: Travelers continue to book closer to arrival, reinforcing volatility in forward-looking indicators and elevating the importance of final pickup.
• Shorter stays signal caution: Average length of stay is trending slightly shorter, reflecting flexible, more conservative travel decisions.
• Revenue efficiency improves: RevPAR gains late in 2025 and stabilizing trends for early 2026 indicate better conversion and disciplined rate management.
• Regional performance remains uneven: Some regions delivered strong RevPAR gains through a mix of pricing and demand, while others struggled despite ADR increases.
• Airbnb gains channel share: Compressed booking windows favor Airbnb, while direct bookings face challenges capturing last-minute demand without stronger remarketing and loyalty strategies.

Source: Key Data

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