Nearly half of property managers hit by increased competition in 2025

US: Nearly half of short-term rental hosts and property managers say increased competition in their local markets impacted their business in 2025, according to new industry research.

Findings from property management software Hospitable’s 2026 Evolving STR Landscape report show that 47.1% of respondents were affected by rising competition, reflecting tougher market conditions across the sector.

Operational pressures were widespread. Rising costs affected 45.1% of property managers, while 44.6% reported reduced guest demand or shorter stays. Economic uncertainty was cited by 42.4%, suggesting many businesses faced multiple challenges at once.

Despite this, nearly 60% of hosts and property managers surveyed said they plan to expand their portfolios in 2026. However, close to two in five said they do not plan to grow or remain unsure, indicating a more cautious approach to expansion.

Technology remains central to competitiveness. Almost all respondents (97.7%) said technology is critical, with more than 80% using AI for guest messaging. Nearly 60% reported saving at least two hours per week through automation.

Looking ahead, automation and AI were ranked as the most significant factors expected to shape the short-term rental industry in 2026, ahead of regulation and changes in travel demand.

Highlights:

• 47.1% of hosts and property managers say rising competition impacted their business
• Rising costs, weaker demand and economic uncertainty cited by more than 40%
• Nearly 60% plan to expand in 2026, but growth intentions are more cautious
• Automation and AI seen as the biggest industry driver for the year ahead