This week’s roundup covers Gen Z travel trends, legal updates affecting short-term rentals in Montana and New Orleans, New York City’s ongoing affordability issue, and Airbnb’s AI development plans. Let’s dive in.
Airbnb reports Gen Z is driving a surge in fall 2025 travel, with searches up 26% compared to last year. Paris ranks as the top trending destination, with Osaka, Dubai, Miami, Porto, Cartagena, London, Munich, Mexico City, and Santiago also seeing strong demand from this demographic. The article shares a recent Focaldata survey, showing that affordability plays a role in the fall travel decisions of more than 80% of Gen Z travellers. In the U.S., Vermont, New Hampshire, New York, Ohio, and Minnesota lead the reviews for fall foliage experiences. Gen Z is also showing a preference for quieter beach getaways this season, with Naha, Ipojuca, Ericeira, San Andrés, and Praia Grande emerging as popular choices. This report highlights the value of showcasing affordability in your listing to attract Gen Z travelers this fall.
The Montana Supreme Court ruled this week that subdivision covenants can restrict vacation rentals, siding with neighbors in a Flathead County subdivision near Whitefish. The case involved property owners who argued that the subdivision’s covenants, which prohibit any business, trade, or commercial activity, prevented short-term rental use. R&R Mountain Escapes, the rental operator, argued that they could operate the property because they had received a conditional use permit from Flathead County. The court upheld the covenants, stating that private subdivision rules can limit vacation rentals even when local government permits exist. Legal observers say the ruling could influence how communities across Montana choose to manage short-term rentals within subdivisions.
Two years after the historic ban on short-term rentals in New York City, the New York Post reports that "Local Law 18" failed to lower rents and increase housing availability. The article shares that the law had little to no effect on affordability or availability, but it coincided with a consistent boost in hotel occupancy, as travelers were forced to shift toward traditional lodging options. In a statement to The Post, Airbnb's director of public policy strategy for North America states, "Airbnb made up only a small share of units, and rents have actually risen faster in neighborhoods that once had the highest number of Airbnbs. The law has only made the affordability crisis worse." The New York City short-term rental ban continues to serve as an interesting test case for how cities approach long-term affordability and regulate short-term rentals.
Skift shares key takeaways from Airbnb CEO Brian Chesky’s talk at the 2025 Goldman Sachs Communacopia + Technology Conference. Chesky said Airbnb will introduce AI search next year to help guests find rentals more efficiently. He also highlighted that AI will make adding listings easier for hosts, with property photos automatically updating to reflect the seasons. “I think everything is now back on the table,” Chesky said, emphasizing that with AI, Airbnb can more easily expand into new markets and businesses.
A federal judge has dismissed ten of the eleven claims made by Airbnb in their lawsuit challenging New Orleans’ short-term rental regulations. The court ruled that property owners do not have a fundamental right to rent their homes on a short-term basis and upheld the city’s authority to require platforms to verify that listings comply with local laws before collecting fees. Council President JP Morrell hailed the decision as a significant victory for residents, emphasizing the city’s commitment to preserving neighborhood integrity and holding short-term rental platforms accountable.
As we get ready for the fall rental season, expect more news on traveler trends, regulations, and technology shaping the vacation rental industry. Check back next week for more updates!
