This week's roundup covers Key Data’s Q1 2026 short-term rental market report, Lake.com’s new integration with OwnerRez, ongoing tax debates in San Diego and Washington state, and new data on Airbnb’s economic impact in Kentucky. Let’s dive in.
Key Data released its Q1 2026 industry performance analysis for property managers, highlighting continued shifts across the U.S. short-term rental market. The report shows that RevPAR and average daily rate (ADR) trends remain on a positive trajectory, even as booking windows and average length of stay continue to tighten. Looking ahead, Key Data says success will depend on “flexibility and execution,” noting that operators who closely monitor booking trends, optimize last-minute pricing, and maintain strong visibility across the high-performing channels will be best positioned to succeed in 2026.
HospitalityNet released an article this week announcing OwnerRez’s recent partnership with Lake.com, a vacation rental booking platform offering more than 40,000 properties near the water across North America and Europe. The partnership gives OwnerRez users seamless access to Lake.com’s highly targeted audience of travelers searching for lakehouses, cabins, cottages, and beach homes. OwnerRez users can get started with Lake.com by visiting here and checking out the OwnerRez support article for integrating OwnerRez with Lake.com.
The proposed San Diego short-term rental tax, previously reported in Industry News on October 10th, is making headlines again this week. The current proposal would impose an annual tax of $5,000 per bedroom on short-term rentals and vacation homes, with revenue directed toward affordable housing and homelessness programs in the city. Supporters say the measure would help address housing affordability, while opponents argue the tax would unfairly target hosts and could have significant impacts on the local vacation rental industry. In response, Airbnb issued a statement saying, “Airbnb supports meaningful solutions that help generate new local revenue, but a hefty tax that significantly raises costs for residents who occasionally share their home to make extra money is not the right approach,” and urged the city to work collaboratively on solutions to improve affordability.
It was announced this week that Washington state lawmakers are once again revisiting a proposal that would allow cities and counties to impose new taxes on short-term rentals. House Bill 2559 would give local governments the authority, starting in April 2027, to add a tax of up to 4 percent on short-term rentals, with the revenue directed toward affordable housing efforts. Over the past year, Airbnb has spent nearly $4 million backing a political action committee opposing the proposal in Washington, including a $1 million contribution made in late November. As of now, the committee reviewing the bill has not scheduled a vote to move the legislation forward.
According to a new economic impact report from Airbnb, Airbnb hosts welcomed more than one million guests to Kentucky in 2024, supporting an estimated 8,700 tourism-related jobs and generating roughly $354 million in income for local workers. Airbnb says guest activity also contributed approximately $146.5 million in state and local tax revenue tied to stays and off-platform spending. The report goes on to break down host demographics and highlights the role short-term rentals have played in smaller, bourbon industry-driven communities where traditional hotels are limited or nonexistent.
As early 2026 data emerges, and local governments continue to revisit short-term rental regulations, the vacation rental industry continues to evolve. Check back next week for the latest news.