Tulum, Quintana Roo — The vacation rental market in Tulum has reached a critical juncture, with the number of active short-term rentals now equivalent to nearly half of the city’s traditional hotel rooms, according to industry data.
The Mexican Caribbean destination has become a cautionary case study for the vacation rental model, as a combination of soaring prices, security concerns, seaweed influx, and taxi fare abuses have driven away visitors, said José Manuel Lozano Álvarez, president of the Association of Vacation Rental Managers (APAR).
The downturn began three years ago and intensified sharply in 2025, Lozano Álvarez said.
Oversupply Strains the Market
Tulum currently ranks third in the state with 5,119 active vacation rental units, behind only Cancún and Playa del Carmen. The average nightly rate is 2,200 pesos (about $115), with stays ranging from two to five days.
That figure represents nearly 50% of Tulum’s total hotel inventory of 11,993 rooms across 239 hotels, according to the Quintana Roo Tourism Secretariat (Sedetur). Despite the evident saturation, about 100 new real estate projects remain under development, adding further pressure to the market.
From Electronic Music Boom to Real Estate Hangover
Lozano Álvarez noted that Tulum’s rise was closely tied to the electronic music festival craze. However, overexploitation of the area produced a backlash. “Perhaps people simply realized it wasn’t worth it,” he said.
Despite the uncertain outlook, APAR sees a glimmer of hope in recently opened infrastructure, particularly the Tulum International Airport. The gradual arrival of more commercial and international flights could give the destination a second chance, with the lesson being the urgent need for orderly growth and quality over speculation.
