Community Perks with The STR Report

🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.

🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

December 29th, 2025

Good evening STR Report Community!

In today’s issue, you will find:

📱Today’s Article: The 2026 Traveler: What Guest Behavior Means for Investors

📈 Trending Market Highlight: Galveston, Texas and Keystone, South Dakota

✉️ STR News: How Tax Compliance Can Be a Competitive Differentiator for Short-Term Rentals

💸 Mortgage Rate Watch

🚜 Unique Airbnb of the Week

🏫 Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

✅ Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

📬 See our collection of newsletters here: Prior Newsletters

The 2026 Traveler: What Guest Behavior Means for Investors

As the STR market moves beyond recovery and into a more normalized cycle, guest behavior is emerging as a leading indicator of revenue durability and risk. Data trends heading into 2026 suggest demand isn’t weakening — it’s becoming more selective.

Here’s what investors should be paying attention to.

Expectations Are Reshaping Revenue Quality

Traveler expectations have shifted in ways that directly affect pricing power:

• Flexibility and transparency now influence conversion as much as headline ADR. Listings with clear total pricing and flexible policies are capturing demand earlier in the booking window.

• Amenity-driven value (workspace, Wi-Fi, parking, self check-in) is increasingly correlated with higher realized ADR, not just occupancy.

For investors, this reinforces that asset quality and positioning matter more than market averages.

Demand Is Extending Beyond the Weekend

Bleisure (Business + leisure: the trend of combining work trips with personal vacation time, often by extending a work assignment by a few days to explore) and extended stays are no longer marginal demand segments:

• Mid-week occupancy has structurally improved, especially in urban-adjacent and lifestyle markets.

• 7–28 night stays continue to stabilize cash flow and reduce turnover costs.

This shift is smoothing seasonality and supporting more predictable income streams — a positive signal for underwriting assumptions heading into 2026.

Domestic vs. International Demand Is Diverging

Recovery trajectories now vary significantly by traveler type and destination:

• Domestic demand in many markets has normalized and become more price-sensitive.

• International demand, where present, tends to be longer-stay and higher-spend, but uneven and market-specific.

Markets with diversified demand sources are demonstrating stronger downside protection.

Post-Inflation, Value Drives Pricing Power

Travelers are less focused on absolute price and more focused on price-to-experience alignment. Assets that clearly justify their rate are sustaining ADR; those that don’t are seeing resistance sooner.

Bottom line: Heading into 2026, returns will favor assets aligned with how people actually travel now — not how they traveled before. Investors who factor guest behavior into valuation, renovation, and market selection decisions are better positioned for stable, defensible performance. 🔒📈💸 

Galveston, Texas

Downloadable Galveston, Texas Short-Term Rental Market Report

• Average Daily Rate (ADR): $327.25 per night

• Occupancy Rate: 42.29%

• Annual Revenue Potential: Around $57,313 per year

Read our full Galveston, Texas Short-Term Rental Market Report attached above.

Keystone, South Dakota

Downloadable Keystone, South Dakota Short-Term Rental Market Report

• Average Daily Rate (ADR): $234 per night

• Occupancy Rate: 52%

• Annual Revenue Potential: Around $44,697 per year

Read our full Keystone, South Dakota Short-Term Rental Market Report attached above.

📬 See our collection of 120+ market reports here: Prior Trending Market Reports

💻 How digital monitoring is reshaping short-term rental enforcement in Europe
ShortTermRentalz interviewed Francesc Serrano, CEO and founder of Talk&Code, to understand how digital monitoring tools are being used by public authorities to identify potentially non-compliant listings at scale.

⛰️ Glasgow consults on short-term let license exemption for Commonwealth Games
Glasgow City Council is considering temporarily suspending the requirement for short-term let license during the 2026 Commonwealth Games, as the city prepares for a significant increase in accommodation demand.

💸 How Tax Compliance Can Be a Competitive Differentiator for Short-Term Rentals 
As tax and regulatory issues continue to be a moving target, new research underscores why compliance is emerging as one of the most consequential and underestimated issues facing the STR sector today.

💸Mortgage Rate Watch – December 29th, 2025

Current Mortgage Rates (as of December 29, 2025):

• 30-Year Fixed: 6.20% (–0.01%)

• 15-Year Fixed: 5.74% (+0.00%)

• 30-Year Jumbo: 6.40% (+0.00%)

• 30-Year FHA: 5.85% (–0.01%)

• 30-Year VA: 5.87% (–0.01%)

• 7/6 SOFR ARM: 5.78% (–0.01%)

Market Overview: Mortgage rates edged slightly lower to close out the year, with the 30-year fixed dipping to 6.20%. Movement remains minimal across loan types, reflecting thin year-end trading, limited economic releases, and a generally steady bond market. Lenders appear content to hold pricing steady as markets transition into the new year.

Rate Trends & Forecast:

• Short-Term: Rates are expected to remain in a narrow range in the near term, with small day-to-day changes unless early 2026 economic data delivers a surprise.

• Long-Term: There’s still potential for gradual downward movement if inflation continues to cool and long-term Treasury yields trend lower. However, meaningful rate declines are unlikely without a clearer shift in the broader economic or policy outlook.

  For real-time mortgage rate updates, visit Mortgage News Daily.

Bored of staying at regular Airbnbs?

How about staying in a Barnominium? 🚜

Escape the ordinary and rediscover wonder at this one‑of‑a‑kind barn retreat — where rustic charm meets modern comfort in a setting made for memories you’ll actually remember. Nestled in peaceful countryside and beautifully designed inside and out, this space invites you to unwind among warm wood beams, open skies, and cozy living areas. Whether you’re sipping coffee by the fire pit, unwinding under starlit skies, or cooking up your favorite meal in a stylish kitchen, every moment feels special. With thoughtful touches throughout, it’s perfect for romantic getaways, creative breaks, or just hitting pause on the everyday rush. Just minutes from local attractions and surrounded by nature, this scenic escape combines peace and convenience in one unforgettable stay.

Subscriber Perks:

📖🏡💰 Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earn—click to get your free performance assessment.

🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

Partner with Us!

If you have a project you’d like us to promote, or a product or service you’d like to share, please reach out to us at [email protected].

We appreciate you being a part of our STR community and for sharing our group with your business partners and associates. Thank you!