This Week’s News & Insights

Good morning,

Here's what's going on in the vacation rental world this week:

100% bonus depreciation might be making a comeback thanks to the House’s new “Big Beautiful Tax Bill,” Airbnb’s AI now answers your guests questions—and could soon plan their trips, and in a move no one saw coming, Airbnb is now the official housing partner of the Lollapalooza music festival.

This week in the markets: Mortgage rates touched a 3-month high before easing slightly, and on the regulatory front, Kansas City is clearing the way for more STRs before the 2026 FIFA World Cup, while hosts in New York and Delaware are facing tighter rules and new taxes.

Lets dive in. 

NEWS

Headline Roundup

• Spain orders Airbnb to take down 65,000 vacation rental listings (The Host Report)

• Casago franchisees get access to 10-year terms and new financing options (Business Wire)

• AI at Airbnb: customer service today, travel concierge tomorrow (The Host Report)

• Vrbo rolls out four new promos, letting hosts swap discounts for distribution (The Host Report)

• Airbnb backs local NYC candidates to shape STR regulation outside Manhattan (NYCity NewsService)

• Hospitable launches Copilot, an AI “brain” for STR operators (The Host Report)

• From check-in to soundcheck: Airbnb goes full festival mode in partnership with Lollapalooza (Airbnb)

INTERESTING INSIGHTS

The Return of 100% Bonus Depreciation?

What’s happening:
The House just passed a new tax package—nicknamed the “Big Beautiful Tax Bill”—and it includes something short-term rental investors have been watching closely: the potential return of 100% bonus depreciation.

Why it matters:
If it becomes law, this would restore one of the most powerful tax incentives for STR investors—especially high-income W2 earners using the STR loophole.

Let me show you a quick example of the power of bonus depreciation for high income earners that invest into STR’s (assuming you meet all the eligibility criteria): 

Hypothetical Scenario

• Property Purchase Price: $700,000

• Land Value: $250,000 (Not depreciable)

• Building Value: $450,000 (To be cost segregated)

• Bonus Eligible Property: $112,500 (25% of building value)

• 37% Tax Bracket

Result:
You can immediately expense $91,600 (on paper expense to offset your W2 income). Assuming a 37% tax bracket, this results in $41,625 in tax savings!

The bottom line:
To be clear – this bill isn’t official yet– it still needs to pass the Senate and get signed into law. But if it goes through, the return of 100% bonus depreciation could have ripple effects:

• Higher property values for existing STRs

• More demand for cost seg studies

• New client opportunities for property managers targeting high-income investors

Stay tuned. This one’s worth watching.

MARKET INSIGHTS

Mortgage Rate Snapshot

Over the past week, mortgage rates briefly spiked to a 3-month high after weak demand at a 20-year Treasury auction and disappointment over the lack of serious spending cuts in the Congressional budget deal. But this week, rates began moving lower as investors started buying bonds again, and new data showed some signs the job market might be getting weaker—which usually helps bring rates down.

Regulations Update

• Areas in Kansas City, Missouri, are removing regulations to accommodate FIFA World Cup visitors in 2026, opening expansion opportunities for investors willing to act quickly

• New York's statewide registry law now requires platforms like Airbnb to report all booking details and collect taxes, adding administrative burdens across the state

• Delaware's new 4.5% state tax on short-term rentals is now in effect, requiring a business license and cutting into beach rental profitability

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