The short-term rental (STR) sector in the United States is navigating a complex landscape marked by staffing and revenue challenges. Despite these hurdles, a significant portion of property managers remain optimistic about revenue growth in the coming years. This outlook is detailed in Key Data’s Vacation Rental Industry Outlook 2026, which surveyed approximately 250 property management professionals overseeing 43,000 properties nationwide.

Survey Findings

The survey revealed that around 60% of property managers expect modest revenue growth, 28% flat growth, and 9% significant growth. In contrast, only 18% anticipate a modest decline, with no respondents predicting a significant downturn. This optimism is tempered by the acknowledgment that financial performance is a crucial factor for property owners deciding whether to continue with management programs.

Challenges to Growth

The primary barriers to achieving revenue targets by 2026 include operational and staffing challenges, which were cited by 73% of respondents. Revenue and market pressures are also significant concerns. Additionally, 43% of respondents highlighted external factors such as regulatory and legal issues as potential impediments. Specific regulatory concerns include strict permitting or licensing requirements (47%), high or increasing occupancy taxes and tourism fees (38%), and local resident or association pushback (30%).

Regulatory Pressures

Regulation remains a significant concern within the STR sector. According to Phocusw

The short-term rental (STR) sector in the United States is navigating a complex landscape marked by staffing and revenue challenges. Despite these hurdles, a significant portion of property managers remain optimistic about revenue growth in the coming years. This outlook is detailed in Key Data’s Vacation Rental Industry Outlook 2026, which surveyed approximately 250 property management professionals overseeing 43,000 properties nationwide.

Survey Findings

The survey revealed that around 60% of property managers expect modest revenue growth, 28% flat growth, and 9% significant growth. In contrast, only 18% anticipate a modest decline, with no respondents predicting a significant downturn. This optimism is tempered by the acknowledgment that financial performance is a crucial factor for property owners deciding whether to continue with management programs.

Challenges to Growth

The primary barriers to achieving revenue targets by 2026 include operational and staffing challenges, which were cited by 73% of respondents. Revenue and market pressures are also significant concerns. Additionally, 43% of respondents highlighted external factors such as regulatory and legal issues as potential impediments. Specific regulatory concerns include strict permitting or licensing requirements (47%), high or increasing occupancy taxes and tourism fees (38%), and local resident or association pushback (30%).

Regulatory Pressures

Regulation remains a significant concern within the STR sector. According to Phocusw