January 2025 Recap and Predictions 

In episode 122 of the STR Data Lab, Jamie Lane, Chief Economist at AirDNA, and Scott Sage, SVP of Marketing, take a deep dive into the January 2025 STR market trends and performance. They break down key insights from Airbnb, Booking.com, and Vrbo’s Q4 reports, analyze short-term rental (STR performance) across major markets, and share what hosts and investors need to know to stay ahead in 2025.

The discussion covers record-high January bookings, rising Average Daily Rates (ADRs), and why multi-channel distribution is critical for STR success.

Here’s what you can expect from this episode:

  • Learn how January’s record bookings set the tone for STR market performance in 2025.
  • Discover why demand is outpacing supply and how that impacts STR pricing strategies.
  • Understand how interest rates and macroeconomic factors could affect STR investments this year.
  • Explore top-performing STR markets, from ski towns to rural areas, and what’s driving demand.

By the end of this episode, you’ll have a clear understanding of the STR 2025 forecast, helping you make smarter investment and pricing decisions.

Episode Highlights

Introduction

Jamie and Scott kick off the episode by reviewing Airbnb, Booking.com, and Vrbo’s Q4 reports, highlighting a 12-19% increase in nights booked across platforms. Jamie explains why being listed on multiple channels is now essential to maximize occupancy and revenue.

The episode also covers a 5% year-over-year increase in ADRs, proving that pricing power remains strong despite economic uncertainties.

STR Reports and Market Performance

Jamie and Scott break down how supply and demand are shifting in the STR industry:

  • Supply grew by 4.3% in January, marking the fifth consecutive month below 5%.
  • Demand surged by 8.9%, with over 20 million nights booked—a record high.
  • Occupancy rates increased by 2%, reflecting the stronger demand trends.

The data confirms that demand is outpacing supply, signaling a positive outlook for STR hosts in 2025.

The Importance of Multi-Channel Listings

A standout takeaway from the Q4 reports is the rise of Booking.com as a major player in the STR space. While Airbnb and Vrbo showed steady growth, Booking.com saw a 19% increase in alternative accommodation bookings—the largest among major platforms.

Jamie emphasizes that hosts who rely on a single platform are missing out. He shares his own experience, revealing that 30% of his bookings came from Booking.com, 30% from Airbnb, and another 30% from direct channels.

If you’re not listing on multiple platforms, you could be leaving money on the table.

STR 2025 Forecast: What’s Next?

Jamie and Scott discuss major trends shaping the STR market in 2025, including:

  • Higher-end and unique properties outperforming traditional listings.
  • Macroeconomic factors like interest rates and inflation impacting STR investments.
  • Cross-border travel trends between the U.S. and Canada influencing demand.

Jamie predicts that larger STR properties (4+ bedrooms) will see the highest demand growth, as families and groups prioritize space and amenities over location.

Market-Specific Performance Trends

The episode also highlights top-performing STR markets:

  • Mountain and lake destinations saw a surge in bookings due to favorable weather and strong ski-season demand.
  • Small city and rural markets grew by 23%, continuing their post-pandemic popularity.
  • Los Angeles and Maui STR bookings were impacted by recent natural disasters, but demand in nearby regions spiked as a result.

Actionable Tips for STR Hosts in 2025

Jamie and Scott provide key takeaways for hosts looking to maximize performance this year:

  1. Leverage multi-channel distribution—Booking.com, Airbnb, and Vrbo all showed strong growth, so listing on multiple platforms is a must.
  2. Price strategically—With demand exceeding supply, ADRs are rising, giving hosts more flexibility in pricing decisions.
  3. Invest in high-quality amenities—Properties that stand out with premium furnishings and unique experiences will attract more bookings.
  4. Stay informed with STR trend reports—Tracking STR market trends helps you adapt to shifting demand patterns and stay competitive.

With a strong start to 2025, Jamie and Scott encourage hosts to focus on differentiation and data-driven decisions to maximize revenue.

Connect With Us

Follow Jamie Lane: LinkedIn | Twitter

Follow Scott Sage: LinkedIn

Follow AirDNA for More STR Insights: LinkedIn |Twitter |TikTok |Instagram

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