Nearly half of short-term rental property owners and managers in the United States say that increasing competition in their markets had a negative impact on their business in 2025, according to new industry research. The findings confirm that the short-term rental market is entering a phase of maturity, with more operators, tighter margins, and higher operational demands.
According to the 2026 Evolving STR Landscape report by property management software company Hospitable, 47.1% of respondents stated that heightened competition had a direct effect on their business performance. This figure reflects the increasingly challenging conditions taking shape across the short-term rental sector, as supply continues to grow faster than demand in many U.S. markets.
Operational pressures were widespread. Rising costs affected 45.1% of managers, highlighting higher expenses related to labor, energy, maintenance, and technology. At the same time, 44.6% reported lower guest demand or shorter lengths of stay—developments that directly impact revenue and overall occupancy levels.
Meanwhile, 42.4% of respondents cited broader economic uncertainty, indicating that many businesses faced multiple challenges simultaneously. Short-term rental managers are now required to balance intensifying competition, shifting travel behaviors, and a more demanding economic environment.
Six in ten managers have expantion plans
Despite the demanding and often volatile market conditions, growth plans have not been abandoned. Nearly 60% of owners and managers who took part in the survey said they intend to expand their portfolios in 2026, either by acquiring new properties or by taking on additional units under management.
However, approximately two in five respondents either do not plan to expand or remain uncertain about their next steps. This suggests a more cautious and measured approach to investment, as many professionals reassess the sustainability and returns of expansion strategies in an increasingly competitive landscape.
Technology appears to play a decisive role in maintaining competitiveness. Almost all respondents (97.7%) consider technology critical to their operations, while more than 80% already use artificial intelligence tools for guest communication, including automated responses and smart request management systems.
In addition, nearly 60% reported saving at least two hours of work per week through automation, translating into improved efficiency and better time management.
Looking ahead, survey participants ranked automation and artificial intelligence as the most important factors expected to shape the short-term rental sector in 2026. Issues such as market regulation and changes in travel demand were ranked lower, underscoring the view that technological adaptation is now seen as a core requirement for survival and growth in the STR market.
Would you also like to learn how to grow your short-term rental business by leveraging technology and emerging market trends? The Short Stay Athens Conference, on February 19 & 20, 2026, brings to Athens the people and the data shaping the future of the industry.
