February STR Performance: Winners, Losers & What’s Next

Jamie Lane, Chief Economist at AirDNA, and co-host Scott Sage, SVP of Marketing & Customer Experience, discuss February 2025’s STR performance

They explore the latest data, including a 5% year-over-year demand increase and a 6% rise in Average Daily Rates (ADR).  They also touch on the challenges of declining bookings in early March and regional fluctuations. Highlights include the impacts of major events like the Super Bowl in New Orleans and Beyoncé’s concert tour on short-term rental performance.

Jamie and Scott dive into how macroeconomic factors, like tariffs and tax changes, are affecting the short-term rental (STR) industry. They also share insights on managing your property’s pricing strategy during periods of economic uncertainty. 

Plus, discover how forward-looking data can help you stay ahead of shifting trends and keep your rental profitable, even in volatile markets.

Here’s what you can expect from this episode

  • Gain insights into February 2025’s STR performance metrics, including demand and supply trends, ADR increases, and growth in Revenue per Available Rental (RevPAR).
  • Discover how major events impacted local markets, driving booking spikes and higher revenue.
  • Learn how to leverage real-time data to stay ahead of market shifts and make data-driven pricing decisions.
  • Understand how macroeconomic factors may influence future STR performance and how to adapt your strategy accordingly.

Episode Highlights 

Demand and Supply Trends 

February saw a 5% increase in demand and a 3.9% rise in supply, suggesting market stabilization after years of rapid growth. However, some markets experienced negative growth, highlighting the importance of closely monitoring local trends.

Notably, rural and mid-sized markets demonstrated stronger performance compared to urban areas and ski destinations, where occupancy rates showed a marked decline. Hosts in high-performing areas were able to maintain competitive pricing strategies, leveraging data-driven insights to optimize bookings and maximize revenue potential.

Revenue and ADR Insights 

RevPAR increased by 5%, while ADR rose by 6%, reflecting the hosts' ability to maintain competitive pricing despite market challenges. Notably, the Repeat Rent Index (RRI) also showed positive momentum, indicating that hosts are successfully pushing rate increases.

The RRI tracks the price changes of existing rentals and removes the effect of newly added listings. Without RRI, looking at ADR spikes alone can paint a misrepresentative picture of host pricing power. New listings can drive average nightly prices up or down, even if existing vacation rental hosts haven’t changed their rates. 

The positive trend in RRI can be attributed to a combination of strong demand and the hosts' ability to adapt pricing strategies to the changing market conditions. By leveraging forward-looking data and staying proactive, hosts have managed to sustain profitability even as some markets face economic headwinds. Additionally, insights from AirDNA's advanced analytics have empowered hosts to make more informed decisions, helping them capitalize on emerging opportunities.

Event Impact on STRs 

Major events significantly boosted local bookings and ADR, emphasizing the value of capitalizing on event-driven demand. In cities like New Orleans, where the Super Bowl drove ADR up by 35%, hosts who stayed vigilant and adjusted rates accordingly saw impressive gains. 

Similarly, cities on Beyoncé’s concert route are experiencing a noticeable uptick in bookings, especially in regions like Atlanta and Houston. This demonstrates how monitoring event calendars and aligning pricing strategies with anticipated demand can yield substantial financial benefits.

Economic and Market Outlook 

Jamie discusses the potential impacts of tariffs, taxes, and economic uncertainty on the STR market, stressing the importance of monitoring local data and adapting strategies accordingly. 

With ongoing economic fluctuations and potential recession risks, maintaining flexibility and leveraging data insights are crucial for hosts aiming to secure stable revenue streams. By focusing on local performance metrics and staying ahead of economic shifts, hosts can build resilient strategies to weather unpredictable market conditions.

Key Takeaways

Be Data-Driven 

Regularly monitor local STR performance metrics to identify trends and adapt your strategy. Use tools like AirDNA to access up-to-date insights that inform smarter pricing decisions.

Leverage Event Opportunities 

Capitalize on high-demand periods by adjusting pricing to match surging interest. Events like major sports games or concerts can significantly boost revenue when managed strategically.

Stay Flexible 

Maintain a proactive approach to economic changes and market-specific shifts that could impact performance. Build contingency plans to mitigate revenue risks during periods of uncertainty.

Connect with Jamie on LinkedIn and Twitter: 

LinkedIn: https://www.linkedin.com/in/jamiehlane/ 

Twitter: https://twitter.com/Jamie_Lane 

Connect with Scott on LinkedIn: 

LinkedIn: https://www.linkedin.com/in/sagescott

Connect with AirDNA on LinkedIn, Twitter, TikTok, and Instagram:

LinkedIn: https://www.linkedin.com/company/airdna/  

Twitter: https://twitter.com/airdna 

TikTok: https://www.tiktok.com/@airdna.co 

Instagram: https://instagram.com/airdna.co

Listen On:

Follow Us: