Why average properties are losing momentum and what it takes to stand out in today’s STR market

The short-term rental market isn’t slowing down, but it is changing.

And if you’re still approaching it the way people did in 2020 or even 2022, you’re going to feel that shift. In this episode, we sit down with Kenny Bedwell to break down what’s actually happening across the STR landscape—and what investors need to do differently moving into 2026.

The Market Isn’t Declining. It’s Dividing.

One of the biggest misconceptions right now is that short-term rentals are “down.” The reality is more nuanced. Demand is still growing. But supply is growing faster. Which means more competition and more options for guests.

The result is a widening gap:

• Average properties are earning less each year
• Top-performing properties are earning more

This isn’t a market collapse. It’s a separation between operators and everyone else.

Drive-To Markets Are Gaining Ground

As travel becomes more expensive, guests are prioritizing destinations they can easily access.

Markets within a few hours of major cities, especially those near outdoor attractions like national and state parks, are proving to be more stable and resilient.

These locations offer a consistent stream of demand without relying on flights, making them a smart focus for investors right now.

The Biggest Mistake Investors Are Making

A common approach is to find a successful property and try to replicate it. But what often gets overlooked is timing.

That top-performing property may have been purchased at a different price, in a different phase of the market, with a completely different risk profile.

Instead of copying what already exists, the better strategy is to find markets where the opportunity has been proven, but not fully maximized.

It’s Not About Bigger. It’s About Intentional.

Larger homes can drive higher revenue, but size alone isn’t what creates success. The real differentiator is how well a property is designed for its specific guest.

That means:

• Clearly identifying your guest avatar
• Choosing amenities that align with how they travel
• Designing a space that supports their experience
• Creating a listing that answers questions before they’re asked

The hosts who are winning are the ones who are intentional at every step.

The Standard Has Changed

Guest expectations are higher than ever. What used to be considered a great stay is now just the baseline. Design, cleanliness, amenities, and overall experience all need to meet a higher standard to compete. This is where many properties start to fall behind—not because they’re bad, but because they haven’t evolved.

The Bottom Line

Short-term rentals are still a strong investment opportunity, but they are no longer passive.

Success in 2026 and beyond requires:

• Data-driven decision making
• Ongoing reinvestment into the property
• A clear understanding of your guest
• A commitment to standing out

The opportunity is still there. But the bar is higher. And the hosts who are willing to meet it are the ones who will continue to grow.

Download a transcript of this episode

Resources:

• #STRShareSunday:  @oakwood_haus
• Submit your property for our next #STRShareSunday at strshare.com

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#STRShareSunday

@oakwood_haus

What a beautiful example of building a stay with intention.

This husband-and-wife hosting team has created something that goes far beyond a place to sleep—it’s a space designed for connection. From the moment you step in, you can feel how thoughtfully this home was put together to bring people together while still giving everyone room to unwind.

We especially love how they leaned into character and warmth throughout the home. The wallpaper choices add so much personality, the fireplace anchors the space in the coziest way, and that primary bathroom… the bathtub is a full experience, not just an amenity. It’s clear they weren’t just checking boxes, they were designing moments.

Paired with the natural light, spacious gathering areas, and those peaceful mountain and forest views, this property is such a strong reflection of hosts who understand both design and guest experience.

This is what happens when you treat your short-term rental like a true hospitality business. With heart, clarity, and intention behind every decision.