Let’s face it—vacation rental prices can feel like a moving target. Whether you’re planning a trip or managing a short-term rental, it’s natural to wonder: Are vacation rental prices going to drop in 2025?
At Cascadia Getaways, we manage Oregon-based vacation homes and track nationwide trends weekly. Here’s what the most recent data from AirDNA and industry leaders tells us—and what you can do to stay ahead.
Are Prices Actually Falling?
Not across the board. Despite economic uncertainty, AirDNA reports that U.S. short-term rental prices (ADR) are expected to rise 2.7% in 2025 . That’s after a 3.9% bump in 2024.
However, occupancy is just inching up to 55.3%—which means more listings are competing for the same pool of guests.
In short: prices aren’t crashing, but they’re getting more sensitive to demand.
We are seeing weaker international travel which often shows in the shoulder seasons March – May and September – November. Paired with economic headwinds and a weaker local economy job wise, we are seeing some softness in prices for the March – May period. We are a little too far away from September – November to tell how that period will shape up.
When and Where Prices Might Dip
While average prices may rise, some markets may soften. Why?
1. Supply is Outpacing Demand in Some Areas
AirDNA shows supply growth is outpacing demand in many U.S. coastal and urban markets, particularly for lower-end listings. In Oregon we are seeing shorter booking windows for mountain and rural markets but very healthy summer demand showing up for coastal markets.
2. Economic Pressure on Budget Travelers
Airlines report fewer bookings from price-sensitive travelers, which often translates into price drops for economy-tier rentals. Listings that lean more on the luxury side are seeing some cushion. A luxury home can always price as an economy home.
3. Oversaturation in Urban Destinations
Big-city hosts face more competition, especially with international travel down in Q1 2025. Urban destinations are where hotels have gained inventory where as in rural markets, hotel inventory has only grown by ~2%.
Where Prices Are Holding—or Rising
Luxury & Unique Rentals Are Winning
Guests continue to prioritize experiences—think treehouses, cabins, and design-forward homes. These command higher rates and better reviews, even in shoulder seasons. Luxury homes are also still seeing healthy demand.
Smaller Markets Are Gaining Traction
Rural destinations and small towns (like many we serve in Oregon) are experiencing stable pricing and increased demand as more travelers seek less crowded escapes. The booking windows are shortening so this demand is showing up more last minute.
Summer Still Sells
Peak season demand in vacation destinations remains strong. According to AirDNA, summer pacing is strongest for mountain and coastal getaways, which describes many of our homes perfectly. We are seeing the summer traditions are holding strong for those annual getaways. Guests may pull back on flying or additional getaways on a whim.
What This Means for Oregon Hosts
If you’re managing a vacation rental yourself, this is the year to focus on strategy over panic. The times of COVID tailwinds offered easy pricing strategies which are shifting quickly.
Use Dynamic Pricing Tools
Stay competitive without underselling. Tools like Wheelhouse, Beyond, or PriceLabs update nightly rates based on demand. Though it is worth keeping a watchful eye on the algorithms and make overrides accordingly. Cascadia Getaways has over a decade of short term rental revenue management strategy going back to before COVID times.
Diversify Platforms
List on Airbnb, Vrbo, and direct booking sites (like CascadiaGetaways.com) to reach multiple guest segments. Cascadia Getaways has invested heavily in direct booking strategies, retargeting and channel partners. Learn more about other booking sites here!
Upgrade the Experience
Premium amenities, fast Wi-Fi, and local guides increase perceived value—letting you charge more without losing bookings. Cascadia Getaways offers 24/7 guest experience, concierge support, guidebooks and more.
For Guests: Smart Ways to Save
Travelers can still score deals in 2025. Here’s how:
- Book in shoulder seasons (April-May, October-November)
- Watch for repeat guest discounts
- Book directly to avoid platform fees (10% – 18% or more)
- Message hosts for longer stay discounts
FAQ: Vacation Rental Prices in 2025
Will prices drop in Oregon?
Not significantly. Mountain and coastal markets like ours are expected to maintain strong pricing thanks to steady demand. We are still seeing healthy ADR growth in most markets.
Is direct booking really cheaper?
Yes. Booking directly often saves you 10–15% in platform fees—and you’ll get better service from local pros. Booking direct on Cascadia Getaways will always be the best pricing available!
Should I wait to book a rental?
If you’re flexible, yes. But for high-demand dates, book early to avoid missing out. We are already seeing stronger summer demand in some markets!
Vacation rental prices in 2025 aren’t falling fast—but they are getting more nuanced. Flexibility, experience, and smart tools will separate the successful hosts from the stressed ones.
At Cascadia Getaways, we specialize in full-service vacation rental management in Oregon’s most desirable destinations. Whether you’re a homeowner ready for some backup, or a traveler looking for your next escape, we’re here to help.