Short-Term Rentals See April Slowdown, But Strategic Shifts Offer Hope

April 2025 brought a noticeable slowdown across the short-term rental (STR) industry in the United States. Nationwide, occupancy rates dropped to around 50%, a sharp decline from the 57% seen during the same period last year. The industry is feeling the effects of a saturated market, rising economic uncertainty, and changing traveler habits. After years of explosive growth, the balance between supply and demand has tipped, leaving many hosts with lower-than-expected bookings and increased competition.

A key factor behind the dip is the broader economic climate. Travelers are being more cautious with their discretionary spending, which is affecting everything from flights to vacation rentals. Companies like Expedia and Airbnb have both reported reduced bookings in recent quarters. Additionally, a drop in international travel—particularly from Canadian visitors due to tariff tensions—has compounded the impact in border states and key tourist destinations. Even seasonal patterns were thrown off this year, as a late Easter delayed the typical spring break travel boom, leaving the early weeks of April quieter than usual.

At Splendor Homes, we saw the writing on the wall well before this downturn. Recognizing the risk of over-dependence on the STR market, we've proactively shifted our focus toward the professional midterm rental space, offering fully furnished single-family homes tailored for traveling professionals, healthcare workers, and relocated executives. This model provides more stability and longer occupancy durations, which helps insulate our properties from the volatility currently rippling through the short-term rental market.

By developing direct relationships with staffing agencies, hospitals, and corporate relocation partners, Splendor Homes is carving out a resilient niche in a crowded industry. While short-term rentals remain part of our portfolio, our pivot to midterm placements has allowed us to maintain strong occupancy and consistent revenue, even during industry-wide slowdowns. As the landscape continues to evolve, we remain committed to adapting ahead of the curve—keeping our homeowners and properties positioned for long-term success.