Short-term rental supply growth is slowing down

Growth in short-term rental supply is decelerating, a trend that is expected to continue next year as properties are more commonly marketed as long-term rentals to help offset housing shortages. 

New data shows a significant slowdown from about 20% growth two years ago. 

“U.S. vacation rental and short-term rental supply growth may continue to slow in 2025 and 2026, as some units are converted to long-term rentals and migrant-focused corporate housing,” analysts at Truist Securities wrote in a report Monday.

In addition to a housing crunch, factors like migrant crises in several cities, inflation, and weak supply and demand are contributing to the deceleration. Hotels also appear to be capturing a larger share of any excess demand. 

The downward trend could disproportionately impact urban areas. Skift reports that could mean that Booking.com and Expedia’s Vrbo fare better than Airbnb, which has a "heavier mix of city rentals than its online travel rivals." 

Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.

New and Proposed Regulations:

• Wichita, Kansas: After new short-term rental regulations went into effect last month, at least 25% of rentals in Wichita have failed to comply with new licensing rules. City officials say non-compliant property owners could face criminal charges. (link) 
• Maui, Hawaii: The county council race has political candidates taking sides on how to increase affordable housing in the aftermath of the Lahaina fire, and whether or not to ban short-term rentals. (link)

Other Noteworthy News:

• Extreme weather events: For travelers whose vacation plans end up in the path of a hurricane, canceling a short-term rental and getting money back can prove challenging. (link)
• “Navy SEALs” of Airbnb: Airbnb’s CBO, Dave Stephenson, sat for an interview to discuss everything from the “founder mode” debate to the Taylor Swift effect. (link)  
• Pop culture stays: In a growing trend of pop culture-themed Airbnbs, Taylor Swift fans can now book the "Swift Suite at Evermore Estate" in New Jersey, complete with a moss-covered piano. (link) Across the pond, fans of the late pop icon George Michael can vacation in the pool house on the grounds of Michael’s cottage in the quiet village of South Oxfordshire, England. (link) But neighbors can push back on the themed Airbnbs, as in the case of bear-y angry Primrose Hill residents protesting a Paddington-themed property. (link)