The short-term rental landscape is changing dramatically in 2025, creating new chances for smart investors who want to explore unique areas. Traditional markets face more rules and competition, but new neighbourhoods offer hidden chances with great returns.
Rising Secondary Markets Change Investment Plans
Montana and Idaho have become top spots for niche rental investments. These secondary markets have seen residential rents rise by over 30%, due to population growth and changing lifestyle choices. Investors are taking advantage of lower costs while enjoying strong appreciation potential.
Phoenix Neighbourhoods Show Strong Growth
Several neighbourhoods in the Phoenix area are doing exceptionally well in areas that aren't usually served:
Arcadia Lite shows a 24% increase in RevPAN year-over-year, with acquisition costs 30% less than traditional Arcadia properties. The rising restaurant scene attracts younger travellers looking for real experiences.
Gilbert Heritage District leads metro growth with 26% year-over-year revenue increases. This walkable downtown appeals to multi-generational travellers while having fewer rules than nearby towns.
South Tempe targets business travellers with 18% occupancy growth, especially those visiting the growing tech corridor.
Professional Housing Fills a Big Need
Furnished apartments for professionals are a profitable niche, meeting the needs of remote work trends. With millennials and Gen Z expected to make up 75% of Airbnb's travellers by late 2025, properties with work-friendly spaces and smart home tech command top rates.
Legal Issues and ROI Chances
While cities are making stricter rules, many new neighbourhoods still have good policies for investors. The key is to do a deep market analysis and understand local compliance needs.
Successful investors focus on advanced features, flexible payment options, and technology to boost occupancy rates and revenue in these changing markets.