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2026 Cape & Islands Short-term Rental Outlook

Joan Talmadge | 2/9/2026
2026 Cape & Islands Short-Term Rental Outlook: Bookings, Rates & Availability

As we move into 2026, 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 seeing a return to more typical travel patterns, leading to a moderation in prices. Rental rates, which rose sharply during peak pandemic years, are stabilizing and returning to pre-pandemic levels.

Strong Booking Trends for 2026

Early bookings for the 2026 season are showing strong momentum. Compared to 2025, bookings are up:

  • nearly 20% on Cape Cod
  • almost 22% on Martha’s Vineyard
  • almost 16% on Nantucket.

At this same point last year, bookings were up more modestly on Cape Cod and the Vineyard and down slightly on Nantucket. Bookings have remained strong since October, an encouraging sign for the season ahead.

vacation rental booking numbers

Rental Rate Stabilization

Rental rates for 2026 are increasing modestly, with prices rising 3–6% overall—slightly above the long-term historical averages we’ve observed over the past 29 years. At the same time, only 9% of homeowners have lowered their rates for 2026 compared to 2025, a sharp decline from 32% last year. This shift reflects increased homeowner confidence and the success of early bookings.

Average price changes:

  • Cape Cod: +4.8%
  • Martha’s Vineyard: +2.9%
  • Nantucket: +1.2% (compared to +6.6% last year)

Pricing Reminders

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 level of inquiries and bookings as you did at this time last year, don’t wait too long to adjust your rates.

For Martha’s Vineyard and Nantucket homeowners, acting early is especially important. As the season progresses, fewer vacationers are able to secure car ferry reservations, which can dampen demand. Filling your home earlier in the booking cycle can make a meaningful difference—waiting too long may mean missed opportunities. (See this Jan. 21 article about recent changes to the Steamship Authority reservation system.)

Avoid raising rates solely due to higher expenses or general market chatter. Instead, compare your home to similar listings. Location, amenities, and current availability all matter. Are competing homes closer to the beach or offering features you don’t? Are they still widely available? If so, pricing may be a factor, and staying competitive can work in your favor.

If you’d like a second set of eyes, we’re happy to review your listing and offer guidance. For more detail, see our post on pricing tips and strategies for the 2026 season.

Inventory and Availability

As of the end of January, 7 out of 10 summer weeks are already more than 50% booked, signaling continued strong demand.

Peak demand remains concentrated in the last two weeks of July and the first two weeks of August. However, vacationers can often find greater availability—and even discounted rates—during the first week of summer and the final two weeks of August, when many homeowners offer reduced pricing to encourage bookings.

Transparency

Today’s vacationers expect clarity. Upfront, transparent pricing builds trust and reduces surprises. Travelers increasingly want to see the true cost of a stay at a glance, with no extra clicks or hidden fees.

To meet travelers’ expectations and improve transparency across our platform, we’ve updated how pricing is displayed in search results.

What’s Changed

Mandatory fees are now included in the weekly rate shown in search results.
Required charges—such as cleaning or administrative fees—are automatically rolled into the displayed rate, giving vacationers a more accurate picture of the total cost from the start. (The lodging tax is not included in the displayed rate.)

For more info, see our page on the All-Inclusive Fee Structure.

As always, if you are still uncertain or would like guidance, please reach out. We’re happy to review your listing with you.

About Joan Talmadge

About Joan Talmadge: What began in 1996 as a way for Jeff and me to rent our Cape vacation home soon grew into WeNeedaVacation—and an entirely new career for me after years in education and publishing. Nearly three decades later, we're still at it, now with a wonderfully talented team and two of our children working alongside us. We live on the Cape year round, and it truly is magical in every season.