Save on your stay—reserve directly with us
As 2025 unfolds, the short-term rental (STR) landscape is evolving rapidly—and the Texas Hill Country is right in the middle of it. At Hearth & Haven, we’re always watching market trends to help our clients stay ahead. Based on insights from AirDNA, here are the key Airbnb growth trends shaping the industry this year, with direct implications for vacation rental owners in places like Dripping Springs, Wimberley, Driftwood, and beyond.
According to AirDNA, small cities and rural areas are seeing the highest year-over-year growth in the U.S.—up a staggering 13.76%. This aligns closely with what we’re seeing in the Hill Country, where travelers seek open spaces, slower paces, and access to wineries, rivers, and outdoor attractions.
What’s driving this growth?
Fewer regulations compared to urban markets
Higher demand for large, private homes
Travelers prioritizing peaceful, nature-rich destinations
Hill Country takeaway: This region’s appeal is only growing stronger, offering tremendous opportunity for STR investors and homeowners.
Making your rental pet-friendly isn’t just a kind gesture—it can be a serious revenue booster. AirDNA reports that pet-friendly listings average $17.41 more per night, enjoy higher occupancy rates, and grow revenue faster than those that don’t allow pets.
What works in the Hill Country?
Fenced outdoor space
Pet welcome kits
Info on dog-friendly trails and restaurants
Hearth & Haven tip: Many of the best-performing properties in Wimberley and Dripping Springs are pet-friendly. It’s a simple change that can make a big difference.
Across the country, demand for 3+ bedroom homes is on the rise. Properties with 6+ bedrooms saw a 12.6% increase in demand, while 5-bedroom homes weren’t far behind at 10.6%.
Why it matters here: Families, wedding parties, and group travelers love the Hill Country. Larger homes with communal spaces, hot tubs, and scenic outdoor areas can command premium rates—even with slightly lower occupancy.
Smart investment insight: If you’re buying or renovating, consider maximizing sleeping capacity and living space without compromising charm.
Budget listings may be struggling, but luxury properties are gaining ground. AirDNA found that luxury-tier homes saw an ADR (average daily rate) increase of 5.23%, while budget properties actually declined slightly.
In the Hill Country, homes with upscale finishes, outdoor kitchens, curated interiors, and pools consistently outperform.
Don’t undervalue your property: Positioning your rental in a higher tier with better amenities can deliver higher returns—even in slower seasons.
In 75% of metro areas nationwide, suburban listings are outperforming urban ones. In the Hill Country, we’re already experiencing this trend: visitors are choosing peaceful towns like Wimberley or Driftwood over city centers.
Why?
Flexible zoning
Larger homes for families and groups
Guests seeking quiet stays and nature access
The bottom line: If you own or are considering a rental just outside Austin or San Antonio, the time to invest is now.
AirDNA notes that many urban markets are stagnating due to regulation. Thankfully, most Hill Country towns are still welcoming to STRs, especially when property owners stay compliant.
Hearth & Haven advantage: We stay up to date on all local and state-level requirements, including licensing and tax collection, so our owners don’t have to worry.
If you’re already in the market—or considering it—2025 presents an incredible opportunity to optimize your property. From embracing pet-friendly perks to offering a luxury experience or targeting larger groups, small shifts can unlock big results.
At Hearth & Haven, we use AirDNA insights and other tools to provide free rental evaluations, estimate income potential, and help owners make smart decisions.
Insights adapted from AirDNA’s U.S. Short-Term Rental Growth Trends Report
Wondering what your home could make as a vacation rental? Whether you’re a homeowner exploring short-term rental income, an investor analyzing returns, or a real estate agent advising clients, our expert team is here to help.
Request a Free Rental Evaluation
Optimized by Seraphinite Accelerator