Vacation Rental Oversupply Drives Down Profits in Cancún and Mexican Caribbean

Cancún, Quintana Roo — Vacation rental profits in Quintana Roo dropped 8% in 2025 as oversupply and new municipal regulations drove down rates across the Mexican Caribbean, industry officials announced.

The Association of Professional Vacation Rental Administrators (APAR) reported that the market value declined from 747 million pesos in 2024 to approximately 686 million pesos last year. Average occupancy also fell from 50.7% to 47.6%, a decrease of 3.1 percentage points.

APAR President Manuel Lozano attributed the decline to an oversupply of rental units and regulations that municipal governments have begun implementing. “Cancún remains the largest market in the Mexican Caribbean with over 17,000 active properties,” Lozano said. “However, the oversupply of rental units has lowered rates in this sector.”

Regional Variations

In Playa del Carmen, Lozano noted that real estate investment and vacation rental development continue due to the city’s connectivity, urban-resort lifestyle, and steady demand from domestic and international tourists. However, the Playa del Carmen municipality announced plans in early 2026 to implement mandatory licenses for short-term rentals to moderate impacts on the residential market and prevent speculative bubbles in urban areas.

Tulum is experiencing a significant adjustment period, with occupancy levels falling below other destinations due to a combination of oversupply, infrastructure challenges, and changing traveler preferences toward more reliable experiences and standardized services. “Although sustained growth was expected, market data reports some of the lowest occupancy rates in the state for vacation properties,” Lozano said during a press conference.

He added that the high season at the end of 2025 showed signs of recovery primarily in traditional hotels, with projections of elevated occupancy, while the vacation rental segment continues to lag.

Future Outlook

For 2026, Lozano anticipates a tourism growth environment boosted by national and international travel and global events like the media impact of the 2026 World Cup. This is projected to increase demand for alternative lodging, benefiting both consolidated markets and new developments in Quintana Roo.