Occupancy at U.S. short-term rentals is plunging heading into late summer, underscoring a tougher operating environment for Airbnb hosts and property managers facing cautious consumers.
Nationwide occupancy for August is tracking 10% below 2024 levels, according to the latest Short-Term Rental Index from PriceLabs. September 2025 is pacing even weaker, down 12% year-over-year, following a 12% drop in July. Only four states managed occupancy gains in July–Illinois (+1.7%), Arkansas (+1.1%), Missouri (+0.9%), and West Virginia (+0.1%).
Despite softer demand, operators are holding some pricing power. Average daily rates (ADRs) climbed 2.9% in July and are on track to rise about 3% in both August and September, suggesting travelers who do book are still willing to pay up for desirable properties.
Labor Day Provides Relief
One bright spot is Labor Day weekend, when demand is accelerating in many destinations. Eighteen of 24 tracked markets are seeing more nights booked than a year ago, led by Branson, Mo. (+39%), Atlanta (+37%), Ocean City, Md. (+34%), South Lake Tahoe, Calif. (+32%), and Destin, Fla. (+32%).
Occupancy rates remain uneven. Bend, Ore., leads the holiday weekend with 60% occupancy, followed by Chicago (58%), Seattle (53%), Atlanta (50%), and Asheville, N.C. (50%). At the other end, Naples, Fla.–weighed down by hurricane season–has just 7% of nights booked, while Las Vegas (23%) and Washington, D.C. (27%) also lag national averages.
Regional ADR trends are mixed. The Northeast is showing the strongest pricing resilience, while hosts in weaker markets are more likely to discount as last-minute booking patterns intensify.
“Economic uncertainty is making some travelers wait longer to decide whether to book, and the question remains whether those with a lower budget will travel at all,” said Richie Khandelwal, president and co-founder of PriceLabs. He added that deal-seekers may find better rates by traveling mid-week, off-season, or in less-saturated markets.
