Peak Rental Season 2025 is Upon Us!

HERES WHAT TO EXPECT:

As we head into the 2025 summer rental season along the Alabama Gulf Coast, early indicators suggest a stable yet competitive market. Guest demand remains healthy, with total nights booked showing a modest increase YOY in both the 30 day and 90 day outlooks. However, occupancy rates have softened slightly compared to last year, largely due to a growing number of available units. This increase in inventory is due to more properties entering the rental market and/or existing properties being available for more nights. The average length of stay remains consistent with seasonal expectations, holding steady around 5 nights. Overall, while guest interest is strong, the added inventory means strategic pricing and effective marketing will be key to maximizing property performance this summer.

Overall, consumer travel behavior heading into summer 2025 reflects a blend of enthusiasm and caution. While many Americans are eager to travel, economic uncertainties are prompting adjustments in vacation plans. According to Deloitte's 2025 summer travel survey, travelers are scaling back on spending increases, with many opting for shorter, more affordable trips such as road travel over international flights and luxury getaways. This trend is further supported by data indicating that 70% of U.S. travelers plan to take a road trip this year, up from 57% in 2023 . Additionally, a report by Barron's highlights that gas prices are approximately 40 cents lower than last year, averaging $3.19 per gallon, making road trips particularly economical . These factors suggest that while the desire to travel remains strong, consumers are prioritizing value and cost-effectiveness in their vacation choices.

Please reach out to me, Kathy Harr, or find more information on our property management program here.