U.S. Vacation Rental Performance for the Last Three Months/Next Three Months
The April 2025 U.S. vacation rental market report reveals a landscape of mixed performance and emerging opportunities. While shifting holiday timing impacted March figures, April benefited from stronger occupancy, bolstered by Easter. However, the outlook for summer reveals softening demand, with forward-looking occupancy trailing 2024 levels. Amid this, ADR shows modest resilience, though varied occupancy trends are pulling down RevPAR. With inflation easing and consumer caution rising, property managers will need to lean into pricing flexibility and regional performance trends to stay competitive.
Paid Occupancy %
Forward-looking summer pacing shows notable softness.
Paid Occupancy % = Nights Sold / Total Nights
Final:
- February paid occupancy remained flat compared to 2024 at 35%, while March underperformed (-2%), and April occupancy increased 6% year-over-year.
On The Books:
- Forward-looking occupancy for the next three months shows signs of softness. May 2025 is pacing similarly to 2024, and June and July are pacing significantly behind (-4% and -5%, respectively).
Average Daily Rate
ADRs remained mostly flat through early 2025 but are pacing slightly ahead for summer.
ADR = Total Unit Revenue / Nights Sold
Final:
- February and April ADRs were flat year-over-year, while March saw a 4% decline.
On the Books:
- May ADRs are pacing up year-over-year (+2%), while June and July rates are slightly higher (+1%).
RevPAR
Varied occupancy and rate performance lead to decreased RevPARs.
RevPAR = Occupancy x ADR or Total Unit Revenue / Total Nights in a given period
Final:
- February saw steady RevPAR, while March RevPAR was down 5%. However, April performed more strongly, with increased occupancy driving RevPAR up 6%.
On The Books:
- May RevPAR is pacing similarly to last year. June and July show softening trends with RevPAR down 3% and 4% respectively, driven by lower occupancy.
U.S. Regional Vacation Rental Performance - Eastern U.S.
Mid-Atlantic States: Significant RevPAR growth, boosted by combined increases in occupancy and ADR.
Midwest U.S.: RevPAR growth driven mainly by occupancy increases.
New England: Dramatic RevPAR growth is driven by increased rates, which outweigh a slight occupancy decrease.
Southeast U.S.: Occupancy, rates, and RevPAR are in line with last year.
U.S. Regional Vacation Rental Performance - Western U.S.
Hawaiian Islands: Strong occupancy and rate gains, leading to RevPAR growth.
Rocky Mountain States: RevPAR growth driven by increased rates and slightly increased occupancy.
Southwest U.S.: Declining occupancy and ADR, pulling down RevPAR.
Western U.S.: Slight decline in RevPAR, with minor gain in ADRs and decreased occupancy.
State of the U.S. Economy
The inflation rate in the United States has been on a downward trajectory since January 2025, when it stood at 3.0%. By April 2025, the Consumer Price Index (CPI) had eased to 2.3% year-over-year, marking the lowest annual increase since February 2021. This indicates that, on average, Americans paid 2.3% more for goods and services in April 2025 compared to April 2024. Despite this cooling trend, the Federal Reserve has maintained its benchmark interest rate at 4.25%–4.50%, signaling a cautious approach amid ongoing economic uncertainties.
Notably, the index for airline fares decreased by 2.8% in April, following a 5.3% decline in March.
Looking ahead, economists anticipate that inflation may rise again in the coming months, potentially reaching around 3.4% by year-end, influenced by factors such as ongoing trade policies and global economic conditions.
A Trend to Keep an Eye On
While travel demand remains strong, American travelers are tightening their budgets
Future Partners (f.k.a Destination Analysts) found that travel demand remains strong, but American travelers are beginning to show signs of spending caution. The average annual leisure travel budget has declined for the second month in a row, now at $5,417, and interest in international travel also dipped, with the share of travelers likely to go overseas dropping from 48.2% to 45.7%. Nearly half of the respondents (47.6%) expressed concern about how Americans might be received abroad, citing recent U.S. trade and tariff policies. These concerns are already impacting behavior—11.6% have changed their travel plans, and 35.9% are considering adjustments in the next six months. Cost-conscious strategies are also gaining traction, with over a third of travelers planning to stick to strict budgets, drive instead of fly, choose budget destinations, or prioritize free and low-cost activities.
