Published on August 25, 2025
By: Tuhin Sarkar
New Orleans joins Nashville, Ocala, Florida, and Jersey City in recording a booming market for short-term rental vacations this year, and this US Labour Day weekend is expected to bring even more growth. Across the United States, travellers are choosing holiday homes, city lofts, and family cabins over traditional hotels. The trend is not slowing. In fact, demand for short-term rentals has risen by double digits through 2025, with many destinations reporting record occupancy and higher nightly rates.
New Orleans, already buzzing with festivals and music, is preparing for another wave of visitors. Labour Day bookings are filling fast, with both hosts and local businesses set to benefit. Nashville is also in the spotlight, where music events continue to drive tourism and rental occupancy. Ocala in Florida, with its springs and equestrian culture, is enjoying new attention from families and nature lovers. Meanwhile, Jersey City across the Hudson River is capturing overflow demand from New York City, giving visitors an affordable but convenient base.

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What unites these cities is a clear pattern. Travellers want space, flexibility, and value. Short-term rentals offer kitchens, larger rooms, and local flavour that hotels often cannot. This has turned them into a central part of the tourism economy. With Labour Day marking the unofficial close of summer, industry experts say occupancy and revenues could climb even higher. These cities show how short-term rentals are now powering tourism growth and reshaping how America celebrates its holidays.

A New Shape of Travel in America

Tourism in the United States is changing fast in 2025. Hotels still matter, but travellers are now booking short-term rentals (STRs) in record numbers. Platforms like Airbnb, Vrbo and local vacation rental agencies are drawing millions of guests. Families, solo travellers, and event goers are choosing flats, beach houses, cabins, and city apartments. The change is not small. National reports show demand for STRs rose by more than 10% in April 2025 compared to last year, while revenues per property climbed nearly 13%. In every region of the US, STRs outperformed hotels during the second quarter of 2025.

This is not just a story of numbers. The STR surge is reshaping tourism economies. Cities that once relied only on hotels now welcome visitors in neighbourhood homes and holiday cottages. Smaller towns are gaining new life. Event cities are seeing their capacity double when thousands of fans arrive. Beach towns and mountain gateways are sustaining year-round business thanks to this new lodging model. Let us explore the American cities where short-term rentals are blooming and boosting tourism in 2025.

New Orleans: A Super Bowl and Mardi Gras Super-Cycle

New Orleans has always been a tourism powerhouse, but 2025 has taken it to another level. The city hosted Super Bowl LIX at the Caesars Superdome in February. This mega-event collided with Mardi Gras season. Hotels quickly sold out. STRs filled the gap. Reports show nightly rates for rentals jumped by more than 67% during the week, with occupancy close to 91%.
Without STRs, many visitors could not have stayed in the city. Thousands of travellers chose apartments in French Quarter balconies, family homes in Uptown, or lofts near Bourbon Street. Tourism leaders now say STRs are essential to New Orleans. They allow the city to host massive events without straining hotel stock. For local hosts, this was the most profitable season in years.

Nashville: The Music Never Sleeps

Nashville is the beating heart of American country music. It is also a city where STRs have changed the visitor experience. Concert weekends in 2025, especially during the Country Music Association Festival and Taylor Swift tour dates, pushed hotels to capacity. STRs saved the day. Occupancy topped 80% across the city.
Travellers stayed in trendy lofts in East Nashville, townhouses near Broadway, and cottages outside the city. These rentals not only supported leisure travellers but also family groups who wanted more space. Nashville has become one of the most profitable STR cities in America this year. Tourism officials say that without STRs, many music fans would have skipped the trip altogether.

Pigeon Forge and Gatlinburg: Family Getaways in the Smokies

In Tennessee, the Smoky Mountain gateway towns of Pigeon Forge, Gatlinburg, and Sevierville are enjoying a bumper 2025. Booking.com listed Pigeon Forge as one of the fastest-rising US destinations this summer, with bookings up 12% year-on-year.
Cabins, chalets, and large group rentals are the backbone here. Families love STRs because they can cook meals, enjoy private hot tubs, and stay close to Dollywood or the national park. Occupancy levels remained strong throughout summer and into the autumn foliage season. Short-term rentals are keeping tourism flowing all year, even when hotel demand dips.

Florida Panhandle: Panama City Beach and Beyond

Beach towns across Florida are thriving, but the Panhandle is shining bright. Panama City Beach is marked as a “high-demand” STR market for summer 2025. Occupancy rates remain high, and nightly prices are strong. Families from the South and Midwest drive in, filling condos and beachfront homes.
The short-term rental model is perfect for this region. Guests want kitchens, balconies, and sea views. Many stay longer than they would in a hotel. This creates higher spending across local restaurants, shops, and attractions. Tourism officials note that STRs are now the backbone of Panama City’s peak season.

Gulf Shores and Orange Beach: Alabama’s Revenue Powerhouses

Alabama’s Gulf Coast has quietly become one of the most profitable STR markets in America. In 2025, Gulf Shores and Orange Beach showed average occupancy of 44% with nightly rates close to $600. For large families and reunion groups, STRs offer the space and comfort hotels cannot.
These rentals attract longer stays, sometimes two weeks or more. The impact on the local economy is clear: more grocery shopping, dining out, and ticket sales for dolphin cruises and fishing trips. STRs here are not a side option. They are now central to the Gulf Coast’s tourism identity.

Jersey City and Newark: Affordable Gateways to New York

Hotels in Manhattan remain expensive and limited. In 2025, nearby Jersey City and Newark have become booming STR markets. Demand is up nearly 38% this year. Visitors stay across the Hudson River, enjoying cheaper prices but quick train rides into New York City.
This shift matters. It spreads tourism spending into New Jersey. Cafés, local shops, and transport services benefit from the inflow. For many international travellers, STRs here make a New York trip affordable. Local officials see this growth as proof that STRs extend the tourism economy beyond traditional borders.

Ocala, Florida: Nature and Horses

Ocala in central Florida is best known for its horse farms and natural springs. In 2025, it has emerged as a fast-growing STR market. Average occupancy hovers near 46%, with mid-range nightly rates. Families heading to Silver Springs State Park or equestrian events now book cabins and cottages.
Ocala’s success shows how STRs can open new tourism frontiers. Once overlooked, the city now attracts both domestic travellers and Europeans seeking nature escapes. With STRs, Ocala can host more visitors without needing big hotel chains.

Charleston, South Carolina: Heritage Meets Home Comfort

Charleston has long been a magnet for food lovers and history fans. In 2025, STRs keep the city’s tourism thriving. Occupancy averages around 54%, with nightly rates close to $370. Rentals include historic townhouses, restored cottages, and modern apartments.
Guests use STRs as a base to explore plantations, art galleries, and beaches. For many, staying in a Charleston rental adds to the authentic Southern experience. Hotels remain popular, but STRs now anchor the city’s tourism balance.

Anaheim, California: Disney Magic with Extra Rooms

Anaheim is home to Disneyland Resort. In 2025, short-term rentals here are busier than ever. Occupancy has climbed 4% year-on-year to around 57%. Average daily rates are above $340. Many rentals are large homes that fit families who want more space and kitchens.
Tourists visiting Disneyland, conventions, or sports games rely on STRs when hotels are booked. Analysts list Anaheim as one of America’s most profitable STR cities this year. For Orange County tourism, STRs are now a major part of growth.

Taos, New Mexico: An Up-and-Coming Gem

Taos is known for its art scene and outdoor activities. In 2025, it is marked as an “up and coming” STR market. Occupancy is about 45%, and average nightly rates are near $280. Rental income for hosts is climbing, with annual revenues above $46,000 in some cases.
Travellers drawn to Taos’s mountains, Native American culture, and ski slopes prefer STRs for longer stays. This trend is putting Taos firmly on the national tourism map.

Las Vegas: A City of Events and Rentals

Las Vegas has always been about scale. In 2025, it has more than 13,000 STR listings across the metro area. Visitors attending conventions, sports events, and concerts are booking them in huge numbers.
While hotel mega-resorts dominate the Strip, STRs spread visitors into suburban neighbourhoods. They offer affordable options for families and groups. The scale shows how STRs can co-exist with hotels even in a city built for tourism.

Why Short-Term Rentals Matter in 2025

The examples above show a clear picture. STRs are not a side story. They are a main pillar of US tourism in 2025. They help cities manage mega-events. They extend tourism to new regions. They give families and groups space. They spread economic benefits into local communities.
National data underlines the trend. April 2025 saw STR demand rise 10%. Revenue per property jumped nearly 13%. By May, the growth held strong, even as hotels slowed. By the second quarter, STRs had outperformed hotels in every region. The industry outlook for the rest of 2025 remains bright.

The Road Ahead

Tourism leaders are now rethinking policy. Some cities still debate regulation of STRs. But the data shows that rentals bring real benefits. They support visitor growth, create income for hosts, and drive more spending for local businesses.
The lesson from 2025 is simple. Cities that embrace STRs gain. Those that restrict them risk losing tourists to nearby markets. The trend is not temporary. It is shaping the future of travel in America.
Short-term rentals are blooming across the United States in 2025. From the crowded streets of New Orleans to the beaches of Alabama, from the mountains of Tennessee to the gateways of New York, STRs are lifting tourism. They help cities handle crowds, attract families, and open new destinations.
For travellers, STRs bring choice, comfort, and affordability. For cities, they bring growth. For hosts, they bring income. This triple benefit explains why STRs are powering America’s tourism boom in 2025—and why their role will only expand in the years ahead.

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Tags: America vacation trends, booming rental market, Labor Day Travel 2025, New Orleans tourism, US short term rentals

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