Late summer is shaping up to be full of movement and opportunity
Short-Term Rentals Keep Their Edge
Short-term rentals outperformed hotels across every U.S. region in Q2 2025, according to Key Data’s Vacation Rental Market Index. While hotels saw RevPAR declines nationwide, vacation rentals enjoyed an average nine-point advantage.
This growth underscores the sector’s strength, but momentum is showing signs of cooling. Despite this, the maturing short-term rental market continues to capture a larger share of U.S. accommodations, signaling its staying power in the evolving travel landscape.
U.S. Real Estate Snapshot: Price Shifts Across the country
After years of relentless growth, the U.S. housing market is showing signs of reshaping itself. Limited inventory and high mortgage rates (hovering near 7%) are still keeping many buyers on the sidelines, but Realtor.com’s latest report reveals a split picture across regions.
Cooling Markets
Nineteen of the fifty largest metro areas now have median listing prices below their July 2022 peaks. The sharpest declines are concentrated in the South and West, with Austin down nearly 15% and Miami falling around 19%. These shifts reflect overextended pandemic-era gains that are now correcting.
Resilient Markets
By contrast, parts of the Northeast and Midwest remain tight. New York has climbed 16% since 2022, while Milwaukee surged an impressive 26%, thanks to constrained supply, strong demand, and restrictive zoning that makes new building difficult.
What This Means for Investors
- Opportunities may exist in softer markets like Austin and Miami, where price drops could open doors for long-term plays once demand rebounds.
- Caution is needed in high-growth regions, where affordability pressures could eventually slow momentum.
- Regional Divergence is likely to remain the theme: some metros are resetting to more sustainable levels, while others are pushing higher with no sign of relief for buyers.