Short-Term Rental Market Outlook: Which Cities Are Poised for Growth in 2025?

2025 is shaping up to be a breakout year for short-term rental (STR) investors. With travel demand rebounding stronger than ever, families, digital nomads, and weekend travelers are increasingly favoring vacation rentals over traditional hotels. But the big question remains — where should investors place their bets? 

Pulsereal’s short-term rental insights cut through the noise with data-backed clarity, helping you spot emerging hot markets before they hit everyone’s radar. 

Where Are STR Markets Heating Up? 

Our latest analysis shows exciting growth in several smaller, secondary markets. These are places that offer a combination of natural beauty, cultural experiences, and affordability — all factors that travelers love and investors can profit from: 

• Eagle Rock, VA: With an impressive month-over-month (MoM) median list price growth of 8.4%, Eagle Rock is gaining traction as a hidden gem for nature-focused getaways. Its proximity to state parks, hiking trails, and scenic drives make it ideal for families and couples seeking quiet retreats. 

• Skaneateles, NY: Famous for its charming downtown and picturesque lake, Skaneateles has seen 6% MoM growth — a strong indicator of rising interest in the area. Tourists come year-round, whether for lakeside vacations, wine tours, or boutique shopping. 

• Cos Cob, CT (11.1% MoM growth) and Long Hill, CT (11.6%) are also on the rise, showing that East Coast travelers are seeking sophisticated yet relaxed vacation spots with easy access to major metro areas. 

• Maysville, OK and Kerhonkson, NY are examples of small towns witnessing triple-digit median price jumps, indicating serious investor and buyer activity and massive future rental potential. 

What’s Fueling Short-Term Rental Market Growth? 

Several key trends are driving the surge in STR popularity: 

• Domestic Travel Dominance: With international travel uncertainties lingering, U.S. travelers are exploring hidden gems and charming small towns stateside. 

• Remote Work Culture: Professionals are blending work and leisure, looking for homes with good Wi-Fi and peaceful surroundings for extended stays. 

• Shift from Hotels to Homes: Families and groups prefer privacy, kitchens, and pet-friendly spaces that STRs offer — creating more demand for spacious, well-located vacation homes. 

How Flipper AI & Pulsereal STR Data Help Investors Win 

Navigating this dynamic market without the right data can be risky. That’s where Flipper AI, powered by Pulsereal, gives investors a competitive edge: 

• Occupancy Rate Analysis: Know exactly when and where demand peaks. 

• Dynamic Pricing Insights: Set competitive nightly rates to maximize returns. 

• Seasonality Forecasts: Plan purchases and listings based on predicted high seasons and market fluctuations. 

• Neighborhood Health Scores: Flipper AI highlights low-saturation areas with high potential, saving investors from over-crowded markets. 

• Property ROI Modeling: Simulate potential returns before investing — no guesswork. 

Tips for STR Investors in 2025 

• Look Beyond Seasonal Peaks: Invest in markets with steady, year-round tourism, such as lakeside towns, historical cities, and regions with conference/event traffic. 

• Prioritize Location Proximity: Properties near downtown areas, parks, beaches, or hiking trails have higher occupancy and command better rates. 

• Watch Out for Oversaturation: Cities like Austin or Nashville may still be great, but high saturation can hurt profits. Use Flipper AI to identify up-and-coming alternatives. 

• Consider Secondary Markets: Cities like Edgar, WI (17.3% MoM) or Byron, CA (13.3% MoM) are showing strong appreciation and have less competition. 

The Bottom Line: Data Beats Instinct 

The STR market in 2025 will reward those who lead with data, not guesswork. The right market timing, strategic property selection, and dynamic pricing can make the difference between average and outstanding ROI. 

With Pulsereal and Flipper AI, you can identify top-performing markets, track growth trends in real time, and buy with confidence. Whether you're a first-time STR investor or scaling your rental portfolio, now is the time to leverage predictive insights and get ahead of the competition. 

Looking for the next big short-term rental investment? Start your search on Pulsereal today and let Flipper AI guide your strategy!