May 22, 2025 As we approach Memorial Day, the unofficial start to summer, WeNeedaVacation.com has reviewed the state of the vacation rental market for the Cape & Islands. Overall, bookings continue to show strong results as inventory remains steady and rental rates begin to stabilize after years of significant growth. Notably, initial rental prices were only 1.0% above last year, reflecting market resistance after several seasons of near–double-digit increases. That’s good news for vacationers!

Bookings

Overall bookings for the May through October 2025 season remain positive in comparison to last year. They are up 5% from 2024 and 1.2% over 2023.

By region, bookings for all regions are ahead of pace from 2024.

Inventory and Availability

After several years of inventory increases recovering from the pandemic, this year has seen inventory of short-term rentals remain level to last year.

A review of peak summer week occupancy rates shows that each week falls within a range of -1% to +3% compared to the same week last year.

The last two weeks of the August are typically the most difficult to book and tend to book later in the season, especially the final week of August. However, it is worth noting that these have shown the largest change in occupancy at +4-5%. This increased rate could be helped by the cost-savings normally found towards the end of the summer.

Pricing

Initial pricing to start the year were only 1% above last year reflecting market resistance to years of near-double digit increases.

As the season progressed, rental rates began to decline earlier and more significantly than usual. Some price reductions were observed as early as January, and by the approach of summer, these discounts had grown to 10% or more. This trend further indicates a stabilization of pricing in response to vacationer demand.

Looking Ahead

Each year as the summer approaches, demand for last-minute bookings increases. An increase in inquiries has already been observed in May, with 20% more inquiries compared to May 2024. With Memorial Day in a few days and the last few days of school around the corner, the pace of bookings for the summer season is expected to rise as vacationers look to finalize their summer plans. The increase in bookings—in part due to lowered prices—is good news for local merchants too. Another strong summer appears to be on the horizon.