Why Are Short-Term Rental Owners Quitting Airbnb in 2025?

By Desi Williams

I'm a Real Estate Broker. I'm good at what I do, and I'll be there with you every step of the way, because I don't know any other way. I'm more than just a buying and selling agent, I'm somebody who wants to help you create your next paradise with everything that means – to you.

Why are short-term rental owners quitting Airbnb in 2025? If you’ve noticed fewer Airbnb listings, or if you’re a host feeling burnt out, unfortunately, you’re not just imagining things.

There’s been a noticeable shift in the short-term rental world in 2025. More and more owners are stepping away from platforms like Airbnb and VRBO, citing everything from falling income to frustrating new policies. As someone in the business, this is certainly alarming.

But what exactly is driving this mass exit? Let’s break it down.

1. Oversupply and saturation. The number of short-term rentals is at an all-time high, but unfortunately, guest demand isn’t keeping pace. This leads to lower occupancy rates and aggressive price-cutting battles, severely impacting profit margins for owners who once relied on this income to stay afloat. Even experienced hosts with great reviews and prime locations are feeling the heat.

2. Rising costs. Everything is getting more expensive—repairs, cleaning fees, property taxes, and insurance. On top of that, the costs for furniture and utilities have gone up, along with the never-ending maintenance that comes with short-term rentals. With high turnover rates, the numbers just don’t work out like they once did.

3. Changing guest expectations. In 2025, travelers want it all: a hotel experience at Airbnb prices. They expect lightning-fast Wi-Fi, stylish and comfortable furniture, 24/7 service, and quick, friendly responses to their questions.

Guests are also looking for extras like streaming services and stocked kitchens. Meeting these high expectations often requires a dedicated team, which can feel like a full-time job for solo hosts.

4. New payment policies. One of the final straws for many hosts has been Airbnb’s updated payment policy, which allows guests to reverse payments even after they’ve checked out. This can happen weeks later with little to no explanation. For those already operating on slim profit margins, this policy can create significant financial strain.

Short-term rentals aren’t disappearing, but the market is changing fast. The days of easy profits and hands-off hosting are largely behind us. If you’re struggling to keep your STR profitable, now is the time to take a hard look at your options.

Ask yourself: Can you raise rates without losing bookings? Are you fully in compliance with local laws? Is it time to bring in professional management, or even exit the market altogether?

Whatever you decide, you don’t have to figure it out alone. I can help you review your numbers, evaluate your options, and build a more effective rental strategy in 2025. Call or text me at (208) 431-7609 or email me at Desi@soldbyrevista.com. Let’s work this out together.