This Week’s News & Insights

Good morning,

Here’s what’s going on in the short-term rental world this week:

Airbnb is tightening cancellation policies with big revenue implications for hosts, AirDNA says U.S. RevPAR just hit an all-time high in August despite fewer heads in beds, and Gen Z travelers are filling the gap with strong fall demand.

This week in the markets: Mortgage rates dropped to their lowest levels since 2022 ahead of the Fed’s rate cut decision, Austin finalized new STR rules that start October 1, and a federal judge dismissed nearly all of Airbnb’s claims in its New Orleans lawsuit - saying that property owners do not have a fundamental right to rent their homes on a short-term basis

Lets dive in. 

NEWS

Headline Roundup

• Airbnb’s Cancellation Policy Changes Could Affect 40% of Cancellations This Fall (The Host Report)

• AirDNA Report: U.S. RevPAR Sets Record in August Despite Lower Occupancy (AirDNA)

• Colorado STR Owners Unite to Push Back on Resort Town Regulations (Summit Daily)

• Brian Chesky on His Mission to Transform Airbnb Into an “Everything” Platform (PhocusWire)

• Airbnb Reports Gen Z Driving Surge in Fall 2025 Travel (Airbnb Newsroom)

• Montana Supreme Court Rules Subdivisions Can Block Vacation Rentals (Daily Inter Lake)

• Hospitable Launches Free Training Academy for STR Hosts (The Host Report)

• U.S. and Canadian Travelers Drive Sharp Uptick in International Bookings (MMGY Intelligence)

• Survey Shows Guests Struggle With Smart Room Basics Like Turning on Lights (Expedia Group)

• Airbnb Debuts First Ad for Services: ‘Now You Can Airbnb More Than an Airbnb’ (Skift)

• Cloudbeds Partners With Revenue Analytics for AI-Powered Revenue Management (Yahoo Finance)

The #1 Priority for 84% of people booking a place to stay is The Location!

INTERESTING INSIGHTS

Experience Is the New Pricing Power

I’ve been hooked lately on what the future top 1% of short-term rentals will look like.

We've already covered Birdie Houses and their epic golf-focused properties, plus Edgecamp Sporting Club as “the Soho House for kitesurfers.” Both are perfect case studies of companies crushing it by going deep into a specific community and providing niche experiences. 

But here’s the twist: you don’t have to be in a famous destination or a downtown hub to pull this off.

Meet Freewyld

Ever heard of Idyllwild, California? I hadn’t either. Tucked two hours from both Los Angeles and San Diego, this tiny mountain town feels like a world apart - yet it’s within driving distance of over 27 million people.

That’s where Freewyld comes in. Their entire concept is about offering an escape without the hassle of flying. Close enough for a weekend trip, far enough to feel truly disconnected.

The Niche: Digital Detox and Nature Connection

Unlike golfers or kitesurfing enthusiasts, Freewyld's tribe consists of people who simply want to disconnect from technology.

At Freewyld, every detail encourages guests to disconnect from distractions and reconnect with nature, loved ones, or themselves. They've built their vision around creating immersive stays where comfort meets adventure - a space free from screens, full of presence.

They encourage guests to "Step into Wyld Mode." Each cabin comes with a Wyld Mode Box (a simple but brilliant touch) where guests stash their phones to keep them out of sight and out of mind.

The design philosophy follows suit. Amenities aren’t built around tech or entertainment, but around nature: stargazing hammocks, picnic tables, and cozy gathering spaces that push guests to slow down and be present.

Freewyld clusters four cabins on two acres, designed like a village. Guests can rent individual cabins, or bigger groups can take over the entire property. Shared amenities reinforce that sense of community and presence.

The Numbers Don't Lie

According to Freewyld:

• Idyllwild market average: $97 RevPAR, 40% occupancy

• Freewyld performance: $190 RevPAR, 77% occupancy

That’s nearly double the revenue performance in the exact same market.

Here’s the key insight:  People will happily drive two hours into the mountains and pay “big city” prices - if you give them an experience worth the trip.

The Pattern Continues

Whether it's golfers seeking the perfect trip, kitesurfers chasing ideal conditions, or city dwellers craving a true digital detox, the winning formula remains consistent: pick your niche, become the undisputed expert in serving that community, and build experiences so compelling that your property becomes the destination.

Bravo Freewyld

MARKET INSIGHTS

Mortgage Rate Snapshot

Mortgage rates hovered near 11-month lows last week as softer PPI and CPI data supported bond markets. This week opened with a sharper decline, pushing rates to their lowest levels since late 2022 ahead of the Fed’s decision and dot plot update.

Regulations Update

• New Orleans federal court upheld strict STR regulations including permitting caps and block-by-block limits, with Airbnb planning to appeal to the 5th Circuit Court of Appeals

• Austin City Council approved new STR rules effective October 1st allowing up to two rentals per lot and requiring license numbers in listings by July 2026

• Nantucket requires STR permit holders to renew 2026 season registrations by October 31st with proof of $1 million liability insurance

• North Myrtle Beach is hosting information-gathering event on September 30th to understand STR operator challenges with no immediate ordinance changes proposed

See this weeks full regulations report here: (The Host Report)