Short-term rental occupancy is down sharply across the United States this summer, according to the latest data from PriceLabs’ monthly “STR Index.”
Occupancy rates for August 2025 are pacing 10 percent below 2024 levels in every state, while September is down 12 percent nationwide compared to the same time last year. The decline follows a 12 percent year-over-year drop in July, when only four states posted growth: Illinois (+1.7 percent), Arkansas (+1.1 percent), Missouri (+0.9 percent) and West Virginia (+0.1 percent).
Despite softer demand, average daily rates have continued to rise. ADRs grew 2.9 percent in July and are pacing roughly 3 percent higher than last year for August and September.
Holiday weekends remain a bright spot. For Labor Day, 18 of 24 key destinations are showing more nights booked than at the same point in 2024, with demand concentrated in markets such as Branson, MO (+39 percent); Atlanta, GA (+37 percent); Ocean City, MD (+34 percent); South Lake Tahoe, CA (+32 percent); and Destin, FL (+32 percent).
Some destinations are reporting strong occupancy, including Bend, OR (60 percent); Chicago, IL (58 percent); Seattle, WA (53 percent); Atlanta, GA (50 percent); and Asheville, NC (50 percent). Others are trailing national averages, with Naples, FL, posting just 7 percent occupancy for Labor Day weekend, alongside Las Vegas, NV (23 percent) and Washington, D.C. (27 percent).
Average rates are also uneven across the country. The Northeast region has seen the most pricing strength, while property managers in other markets may be forced to discount due to the rise in last-minute bookings.
“While economic uncertainty is making some travelers wait longer to decide whether to book, the question remains whether those with a lower budget will travel at all,” Richie Khandelwal, president and co-founder of PriceLabs, said in a statement. “Travelers who are looking for a last-minute deal should think outside the box and look to destinations where demand is lower, or consider traveling mid-week or out of high season to get a better rate. However, in more popular destinations, guests should be careful not to leave it too late, as the properties they like might get booked up.”
For more information, visit www.pricelabs.co.
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