This week’s roundup covers Airbnb’s strong Q2 growth, a pivotal Dallas short-term rental ruling, and vacation rentals outpacing hotels in the U.S. Plus, updates from Greater Palm Springs and top budget beach getaways for summer 2025. Let’s dive in.
Airbnb reported $3.1 billion in revenue for Q2 2025, a 13% increase year over year. Nights and Experiences booked reached 115.1 million, up 9% from the same period last year, with demand accelerating from April through July despite early economic uncertainty. Executives attributed growth to a strong summer travel season, particularly in North America. During the earnings call, Airbnb highlighted increased group travel and longer stays, noting that over 25% of bookings in Q2 were for trips lasting a week or more. The company is also investing in AI to improve search and guest support, and said it plans to expand listing supply ahead of future peak travel periods.
An appellate court ruled in July that Dallas’ 2023 ordinance banning short-term rentals in single-family neighborhoods is unenforceable. The ordinance also requires short-term rental permits for properties in multifamily and commercial zones, but the city has yet to launch the permitting system. Following the recent ruling, The Dallas Short-term Rental Alliance has signaled that they are pleased with the court’s decision and has reinforced its desire to work with city leaders on a fair and sensible ordinance. With Dallas set to host eight matches during the 2026 FIFA World Cup, and tickets going on sale September 10th, local groups are urging officials to clarify rules quickly amid the expected spike in demand. Advocates warn that ongoing legal and regulatory uncertainty could limit lodging options during one of the city’s most significant events to date.
Short-term vacation rentals outperformed traditional hotels across all U.S. regions in the second quarter of 2025, according to Key Data’s latest U.S. Vacation Rental Market Index. The sector posted stronger revenue per available room (RevPAR) than hotels, marking a notable shift in the travel accommodation landscape. Despite this strong performance against hotels, forward occupancy for September is down 11% year over year. Booking windows have also shortened across key summer months, challenging operators to manage more efficiently and stay on top of pricing strategies as travelers book closer to arrival.
A new report from the Greater Palm Springs Convention and Visitors Bureau highlights the economic role of short-term rentals in the region’s tourism economy. According to the article, in 2023, short-term rental activity generated $1.1 billion in economic impact and supported more than 4,500 local jobs across the Coachella Valley. To address neighborhood concerns, cities throughout Greater Palm Springs have adopted “good neighbor” policies, including quiet hours, bans on amplified outdoor music, proper trash storage, and designated guest parking to preserve quality of life for full-time residents. Local governments have also capped permits in some cities, partnered with rental platforms to improve compliance, and provided 24/7 vacation rental hotlines for residents to report issues directly to on-the-ground compliance teams. The region’s approach aims to balance housing needs with tourism demand and may serve as a model for cities considering stricter crackdowns or bans on short-term rentals.
As travelers continue to prioritize budget-friendly trips in summer 2025, NerdWallet has named Panama City Beach, FL, West Palm Beach, FL, and Outer Banks, NC, among the top cheap beach getaways in the U.S. All three offer public beaches, affordable lodging, and family-friendly attractions, making them standout picks for a coastal vacation without the high price tag.
As August unfolds, expect more shifts in traveler behavior, regulation, and technology across the vacation rental landscape. Check back next week for the latest news!
