Happy Friday! From million-dollar mergers and global booking shifts to stricter local rules and high-stakes legislation, the vacation rental industry is staying as dynamic as ever. This week brought major headlines, from Airbnb’s earnings outlook and Casago’s acquisition of Vacasa to anti-tourism protests in Europe and regulatory crackdowns across North America. Let’s dive into the top stories shaping short-term rentals right now.
Airbnb’s Q1 2025 earnings revealed a 6% year-over-year revenue increase to $2.27 billion, surpassing expectations. However, the company anticipates a slowdown in U.S. travel demand due to broader economic uncertainties, including high prices and trade tensions. This outlook led to a 5.3% drop in Airbnb’s stock price in after-hours trading. Notably, bookings by Canadian travelers to the U.S. have declined, with a 27% increase in bookings to Mexico instead.
Casago has officially completed its acquisition of Vacasa in a $130 million deal, marking the end of Vacasa’s time as a publicly traded company. The merger brings together Casago’s owner-focused management style with Vacasa’s large-scale technology platform, creating a combined portfolio of over 43,000 properties across North America and beyond. Casago CEO Steve Schwab will lead the new entity, with support from proptech investor Roofstock to further enhance operations and guest experience.
British Columbia, Canada, is enforcing new short-term rental regulations requiring all hosts to register their listings by May 1, 2025. Platforms must validate these registrations by June 2, or face penalties. Since the legislation’s introduction, over 20,000 listings have been registered, and long-term rental vacancy rates have increased from 1.2% to 1.9%.
If you’ve made summer travel plans to Europe, particularly Spain, Italy, or Portugal, you could be impacted by coordinated anti-tourism protests planned for June 15. Demonstrations are expected in popular destinations like Barcelona, Venice, and Lisbon, with possible disruptions to airports, roads, and tourist areas. The protests aim to draw attention to the strain mass tourism places on housing, infrastructure, and local communities.
Vrbo is dialing back parts of its Super Bowl ad campaign after Airbnb called foul. The ads hinted that booking with Airbnb means sharing space with a host, which isn’t always the case—Airbnb offers plenty of entire-home rentals. After a review by the National Advertising Division, Vrbo agreed to tweak the messaging, adding another chapter to the ongoing rivalry between the two vacation rental giants.
Now onto the legislation news. The Houston, Texas, city council has implemented new regulations for short-term rentals, including mandatory certification applications, annual human-trafficking training for operators, and a $275 annual operating fee. The ordinance also bans advertising rentals as event spaces and allows the city to revoke certifications following multiple code violations.
Senate Bill 1162 in Idaho would preempt local bans on STRs and limit the regulations cities and counties can impose. Requirements such as owner occupancy, rental caps, or signage rules would be prohibited. While basic licensing and enforcement are still allowed, the bill seeks to standardize how STRs are treated, more like traditional residential homes than businesses.
Arkansas lawmakers are advancing HB 1445, a bill that would block local governments from banning or heavily restricting short-term rentals. The bill allows revocation of STR licenses after three nuisance violations but limits municipalities’ ability to regulate beyond that. While proponents frame it as a property rights and tourism-support bill, several local officials have voiced concern over losing control to address community issues.
Twin bills in Ohio (SB 104 & HB 109) aim to ban local governments from outlawing or capping STRs, limiting owner permits, or requiring host residency. While health and safety regulations and licensing would still be allowed, the bills expand state lodging taxes to include STRs, potentially generating up to $150 million annually. Both bills are still in committee with hearings pending.
Vermont State Legislature put forward bill H.242, which proposes restricting STRs to only owner-occupied properties, a move the Vermont STR industry warns would devastate tourism and eliminate thousands of jobs. The bill has not progressed past committee review, but stakeholders are watching closely. Industry advocates argue that STRs represent a small housing footprint while making up a large portion of the state’s visitor capacity.
Colorado’s HB 25-1247 seeks to raise the cap on county lodging taxes from 2% to 6%, pending voter approval. In addition to current uses like tourism promotion and housing for workers, the expanded tax revenue could fund infrastructure, sustainability, and public safety. Critics caution the broader usage might stray from the tax’s original purpose and unfairly burden the STR industry.
Washington’s SB 5576 would replace the state STR tax with a 4% optional local excise tax that cities and counties could use for affordable housing. The bill has faced pushback from small operators who say the added tax burden could drive them out of the market. It passed the Senate and House committee and now awaits a full House vote.
If you’re looking for a strong advocacy and support network for short-term rental professionals, be sure to explore Rent Responsibly’s Alliance Program.
That’s a wrap for this week’s updates. Be sure to check back next week for the latest news and trends in the vacation rental industry!
