July 2025: Short-Term Rental & Real Estate News Roundup

I’m KP, your go-to source for all things short-term rental and property insights. Each month, I sift through global STR data, legal updates, booking shifts, and housing trends to bring you the most actionable and forward-looking information. Here’s what’s shaping our world right now.

Global STR Market: Growth Amid Regulation

Huge Revenue on the Horizon
The global vacation rental market is projected to reach an astounding $105.7 billion in revenue by the end of 2025, with user numbers expected to climb from 860 million in 2024 to over 1.07 billion by 2029 (StayFi). As a host, that tells me one thing clearly: this industry isn’t slowing down, and demand remains steady.

Regional Highlights & Growth Hotspots
Europe leads with roughly $32.1 billion in 2024 revenue, while the U.S. tacks on around $20 billion in 2025 (StayFi). Asia-Pacific is booming too, with markets like Japan and Thailand expanding fast as middle-class travel surges.

New Occupancy Records
According to AirDNA, occupancy rates as of April 2025 have surpassed pre-COVID averages, a clear indicator that travel is roaring back (AirDNA).

STR vs Hotels: Rentals Pull Ahead

Vacation Rentals Outpacing Hotels
In May 2025, vacation rentals grew 12% year-over-year, far outpacing hotel growth, which was only 2% (Skift). Clearly, travelers prefer the space, flexibility, and privacy that STRs offer.

Europe’s Strong Guest Night Growth
During Q1 2025, guest nights jumped 4.8% over Q1 2024, with standout growth in Malta (+33.5%), Finland (+23.6%), Bulgaria (+22.3%), and Poland (+11.2%) (Rental Scale-Up). These are the rising stars for cost-conscious and domestic guest-driven regions.

STR Regulation & Supply Pressures

Spain’s STR Boom Despite Pushback
In Spain, STR listings surged 25% over two years, even amid aggressive government attempts to curb them. The city has already withdrawn 65,000 listings, but efforts to rein in inventory haven’t slowed growth (Reuters).

European Regulatory Patchwork
Most major European cities now impose limits: from 90-day caps in London, Paris, and Lucerne, to registration requirements in Lisbon and rental bans in some parts of Venice (Wikipedia).

Tracking the “Slomad” Trend—Longer Stays
New data shows Americans are booking longer stays: average nights rose from 3.7 pre-pandemic to between 4.1–4.4 post-2021, with long-term bookings (28+ nights) remaining elevated (Cornell University). The remote work shift is here to stay, and hosts should be ready with flexible pricing and cleaning protocols.

STR Tech & Revenue Strategies

Host Revenues Are Up, Even with Lower Rates
BeyondPricing reports that even amid ADR dips, STR properties in the Gulf Coast regions saw revenue climbs of 29% to 44% year-over-year during peak season (Beyond Pricing). Smart dynamic pricing remains a powerful tool.

Machine Learning and Pricing Insights
Scholars are building AI models, like those tested in Austin, to predict STR pricing based on demand, sentiment, and seasonality (Cornell University). If you’re serious about optimizing rates, investing in tech, or learning price modeling techniques might give you an edge soon.

Real Estate Market: Housing & Buying Trends

More Inventory, Slower Sales, New Opportunities
In the U.S., active listings grew 28.9% year-over-year, topping 1.08 million homes for sale (Realtor.com). New listings rose too, though spring momentum appears to be slowing.

Pending sales are flat or down (–1.6% YoY), and existing home sales dropped 2.7% in June, despite record-high median prices of $435,300 (NAR, Barron’s, Realtor, New York Post).

Regional Variations in Prices & Sales Timeframes
California coastal values are cooling. San Francisco dropped 2.5%, while San Jose edged up 1% (San Francisco Chronicle). Meanwhile, markets like Beverly, MA are red hot: homes sell in just 16 days, median price at $719K, with high buyer traffic (New York Post).

UK Market Slowly Rebounds
After stamp duty policy changes, UK buyer demand in June turned positive (+3%), although prices remain mostly flat. Experts forecast modest 3.5–4% growth through 2025, if mortgage rates ease (MoneyWeek).

Today’s Buyer Market? More Favorable
Redfin reports home prices falling in 14 of the 50 largest U.S. metros, though national prices are still up +2% YoY. Nearly 44% of recent home sales included seller concessions, giving buyers leverage unseen in recent years (Business Insider).

STR Provider Highlights and Market Dynamics

Airbnb’s Strong Q2 Earnings, But Headwinds Loom
Airbnb reported $3.1 billion in Q2 revenue (+13% YoY) and net income up 16% to $642 million. Despite beating expectations, they warned of “tough” months ahead, citing margin pressure from $200 million in new investments and rising tariffs (Financial Times). Their strategy now includes expanded services – like cleaner bookings and cooking lessons – to diversify offerings.

What It All Means, and What’s Next

For STR Hosts:

• Global demand remains strong, with rising guest nights and revenue growth.
• Target markets like Eastern Europe and regional domestic destinations are surging.
• Longer stays continue to grow. Optimize for remote-workers and slomads.
• AI tools for pricing are the future. Start exploring.

For Real Estate Investors:

• More inventory and slower sales create opportunity zones for purchase.
• Markets are diverging: West cooling, Northeast/Midwest holding strong.
• Buyers are gaining leverage as 2025 wanes. Seek markets offering concessions or quick negotiation power.

Forward-Looking Signals:

• 2025 STR revenue is set to cross $105.7 billion globally, aiming for $134 billion by 2034 (World Tourism ForumAirbnb Management Software).
• Hybrid and tech-enabled models will scale: AI for pricing, remote work demand shaping bookings, global expansion in STR-friendly infrastructure.
• Regulatory pushback remains, but hosts who comply and diversify stand to thrive.

Final Take

Let me wrap up this news roundup with a mix of insight and optimism. I’m seeing a marketplace that’s diverse, resilient, and filled with opportunities for experienced hosts, new investors, or anyone curious about generating income through rentals.

If you’ve been hesitant, now is the time to engage. Learn your local laws, build a reliable operation, and leverage smart data. The world of short-term rentals is buzzing, and with the right angle, you can ride this wave profitably for years to come.

You might also like my other article, “How Travel Changed – and Came Roaring Back – Since 2020: What’s Different Now and What It Means for the Next 5–10 Years.”

This post is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult with a licensed attorney, accountant, or local short-term rental expert to understand how regulations and guest types like mid-term stays or “slomads” may apply to your specific property and location.