As we move into 2025, vacation rental bookings across Cape Cod, Martha’s Vineyard, and Nantucket continue to show significant growth compared to pre-pandemic levels. While demand surged during the pandemic, we’re now observing a return to more typical travel patterns, leading to a moderation in prices. Rental rates, which experienced substantial increases during peak pandemic years, are stabilizing and returning to pre-pandemic levels.

Strong Booking Trends for 2025

Bookings for the 2025 season are already showing promising signs of continued interest. Compared to 2024, bookings are up by over 14% on Cape Cod and nearly 11% on Martha's Vineyard. However, Nantucket is seeing a slight decline, potentially due to more aggressive price hikes in comparison to the Cape and Vineyard.

Note: With approximately 38% of total expected bookings already confirmed, the season is still in its early stages, so we anticipate some fluctuations as the months progress.

Rental Rate Stabilization

In 2025, rental price increases are following a more typical pattern, with rates rising between 2-4%, which is consistent with the historical trends we've seen over the past 28 years. Notably, 32% of homeowners have lowered their rates for 2025 compared to 2024, reflecting the market’s normalization after record-breaking price hikes during the pandemic.

Here’s a snapshot of the 2025 price changes:

• Cape Cod: +2.0% (the Upper and Mid Cape – Sandwich to Dennis – averaged virtually no price increase at all)
• Martha’s Vineyard: +1.8%
• Nantucket: +6.6% (notably higher than the Cape and Vineyard)

For context, last year’s average increase was 2.6% over 2023, with this year’s increase being a modest 2.5% over 2024.

With the market softening, it’s essential to reassess your pricing every year. Are you approaching a tipping point where you risk not fully booking your home for the season? If you’re not getting the same number of inquiries and bookings as you did at this time last year, don’t wait too long to adjust your rates.

If your property is on Martha’s Vineyard or Nantucket, it’s particularly important to act early. As the season progresses, fewer vacationers will be able to secure car ferry reservations, which can limit demand. Filling your home early is crucial—waiting too long could mean missing out on bookings. See this Jan. 28 article about the Steamship Authority.

Don’t be tempted to raise your rates because others are doing so or because your expenses have increased. It’s important to compare your property to similar listings in your area. What’s your competition like? Do they offer more amenities or a better location, such as being closer to the beach? Check their availability—if they have a lot of open dates, their pricing might be too high, and yours could be more competitive.

If you're still uncertain, reach out to us. We’re happy to review your listing with you and offer guidance.

For more in-depth advice on pricing your home for the 2024 rental season, be sure to check out this post about pricing advice for the 2025 season.

Inventory and Availability

As of January, 7 out of 10 summer weeks are already over 50% booked, signaling high demand. For vacationers looking to secure their ideal rental, now is the time to act before the most sought-after properties are fully booked.

Peak demand is typically for the last two weeks of July and the first two weeks of August. However, vacationers can often find more availability—and even discounted rates—during the first week of summer and the final two weeks of August, as many homeowners offer reduced prices during these periods to encourage bookings.

Transparency

Vacationers these days are willing to pay more, but, in turn, they have higher expectations than ever before. (For more information, read our recent post, “Who is Today’s Vacationer?”)

Be sure your listing is transparent. Make it abundantly clear what’s included in your rental and what’s not.

Don’t hide additional fees

Vacationers are unhappy if they see fees on their lease that had not been previously revealed. Given that cost is always a major factor for anyone planning a vacation, price transparency is key. Vacationers want to know in advance the additional fees that will be added to the rental price (e.g., cleaning, linen, and pet fees). This enables them to easily compare the cost of properties. Be sure to add these fees to your calendar page. More info.

As always, if you are still uncertain, reach out to us, and we will look over your listing with you.