As the short-term rental industry looks ahead to 2026, new research from Key Data reveals that property managers are entering the year with a cautious but determined mindset.
According to Key Data’s 2026 Vacation Rental Industry Outlook, nearly three-quarters (73%) of property managers say staffing and revenue pressures are the biggest barriers to hitting their business goals in the coming year. The findings, based on responses from 244 professionals overseeing more than 43,000 properties across the U.S., paint a clear picture of an industry balancing optimism with operational strain.
Regulation and Operational Pressures Remain Top of Mind
Regulation continues to weigh heavily on short-term rental operators.
- 42% of managers expect local or state regulations to impact their ability to meet 2026 targets.
- 47% report facing strict permitting or licensing requirements, leading to higher compliance costs, operating caps, and ongoing uncertainty as local ordinances shift.
Meanwhile, operational and staffing challenges dominate daily management realities. Recruiting and retaining qualified staff, from cleaners to guest service teams, remains a top operational pain point. Combined with softer revenue growth and evolving market dynamics, many managers are focused on doing more with less.
Marketing, Distribution, and Technology Shifts
Beyond staffing and regulation, 23% of managers cited marketing and distribution pressures as an ongoing challenge. This serves as a reminder of just how competitive the booking landscape remains.
Interestingly, just 8% of respondents viewed technology or insights as limiting factors, underscoring a growing shift in perception: rather than seeing tech as a hurdle, most operators now view it as a key enabler for growth, efficiency, and smarter decision-making.
A Market Focused on Efficiency
Despite mounting pressures, a majority (60%) of property managers still expect modest revenue growth in 2026. To achieve that, operators are zeroing in on efficiency and operational excellence as their top strategic priorities ahead of marketing, guest experience, or portfolio expansion.
Nearly one in three managers stated they review market data weekly to guide pricing and performance decisions. This commitment to real-time insights reflects a maturing industry that understands the value of data in protecting margins and staying competitive.
A Market Bracing for Tougher Conditions and Steady Growth
“The data makes clear that property managers are feeling the pressure as they head into 2026,” said Quinn Monescalchi, Senior Data Analyst of Marketing & Insights at Key Data. “Staffing shortages, revenue concerns, and regulation are weighing heavily on the sector. What we also see is a shift in priorities: managers are putting operations and efficiency ahead of expansion, and leaning more on data to make decisions. It reflects a market that is bracing for tougher conditions while still looking for steady, sustainable growth.”
The full 2026 Vacation Rental Industry Outlook, including deeper insights into regional trends, operational benchmarks, and data-driven strategies, is coming soon. Visit Key Data’s website to learn more and follow Key Data on LinkedIn to be the first to access your copy of the 2026 Vacation Rental Industry Outlook.
